Q2

Hi, can you answer this question in more detail?

Subject: Quality Management and Practices

Papawo is a paper manufacturer company and its cost data is shown in Table 1. Use the Pareto diagram and perform graphical analysis to show the most significant two cost categories on which Papawo should concentrate. Based on your analysis, make a recommendation for management on how they should act to improve quality. Papawo Paper Co. Category Downtime Testing costs Rejected paper Odd lot Excess inspection Customer complaints Wasted materials Annual Loss $28,000 $100,000 $375,000 $20.000 $21,000 $15,000 $30,000 Table 1 - Cost Data of Papawo Ltd