Pareto chart and cost of quality report for a service company obj. 3, 4 The administrator of Liberty Hospital has been asked to perform an activity analysis of the emer gency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Chapter 13 Lean Manufacturing and Activity Analysis 647 Activities Activity Cost Patient registration $ 6,500 Verifying patient information 9,700 Assigning patients 13,000 Searching/waiting for doctor 9.200 Doctor exam 4,900 Waiting for transport 17.500 Transporting patients 16,200 Verifying lab orders 14,500 Searching for equipment 8.200 incorrect labs 11,300 Labtests 17.000 Counting supplies 19,000 Looking for supplies 8.200 Staff training 4.800 Total $160.000 Instructions 1. Prepare a Pareto chart of the ER activities. 2. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 3. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. 4. Determine the percentages of the total ER costs that are value added and non-value-added. 5. Interpret the information