reto Chart and Cost of Quality Report for a Manufacturing Company the president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better sight into these costs. The activity analysis revealed the following The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap! Required: 1. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality producing product). Classify the activities into value-added and non-value added activities Activity Activity Cost Cost of Quality Classification VA/NVA 8 8 8 Correcting invoice errors Disposing of incoming materials with poor quality Disposing of scrap Expediting late production Filipection Inspecting incoming materials Trapecting work in process Prevenmachine maintenance producing product 8 8 8 Responding to customer at compla 2. Select the following Pareto chart of the company activities. Pareto Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 Preventive machine maintenance espond to customer Quality complaints Parato Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 Disposesc Correct invoice rors Preventive machine maintenance Respond to customer quality complaints Dispose incoming materials with poor que Pareto Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 120000 Pareto Chart of Activities 100000 80000 Dollars 60000 40000 20000 Dispose scrap Final inspector Produce product Correct invoice errors Inspect work in process Expedite ale production inspect incoming materials Preventive machine maintenance Respond to customer quality complaints Dispose incoming materials with poor quality The correct answer is a producing prode 3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal internal failure external falure, and not cause of Quality Cost Percent of Total Activity Cast classification Department Cost Prevention Appraisal Internal failure External failure Not a cost of quality Total 4. Determine the percentages of total costs that are value and non-value-added Percent of Total Activity Cost Department Cost added Non-value-added costs represent 264 of the total costs. 5. The company has 65% of its total costas my one activity classified as an is to gain a better Pareto Chart and Cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president and the controller to perform an activity insight into these costs. The activity analysis revealed the following. The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of crap Required: 1. Classify the activities into prevention, appraisal Internal failure, external failure, and not costs of quality producing product) Classify the activities inte va activities Cost of Quality Activity VA/NVA Activity Cost Classification d ded and non-vale added $7,500 15,000 8 Correcting invoice errors Disposing of incoming materials with poor quality Disposing of scrap Expediting late production Final inspection Inspecting incoming materials Inspecting work in process Preventive machine maintenance 8 8 8 Droducing product 8 Responding to customer quality complaints $250.000 2. Select the following Pareto chart of the company activities. Pareto Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 Dispose scrap Produce product Correct Invoice error Inspect work in process Dispose Incoming materials with poor quality Pareto Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 Correct invoice errors Inspect incoming maten Pareto Chart of Activities 120000 100000 80000 Dollars 60000 40000 20000 Correct invoice non Hespond to customer Donecoming materia Pareto Chart of A 120000 100000 80000 Dollars 50000 40000 20000 Respond to customer quality The correct answer 3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality producing product). Quality Cost Pence Total chawcation Activity Car Department Con Prevention Appraisal Internal failure External failure Not a cost of quality Total 4. Determine the percentages of total costs that are value and non-value Percent of Total Activity Cost Department Coast Value-added Non value-added Total 5. The company has 65% of its total costs as only one activity classified as an
