Question
The administrator of elections for the city of Madisonville has been asked to perform an activity analysis of its optical scanning center. The optical scanning
The administrator of elections for the city of Madisonville has been asked to perform an activity analysis of its optical scanning center. The optical scanning center reads voter forms into the computer. The result of the activity analysis is summarized as follows: Activity Activity Cost Correcting errors identified by election commission $20,220 Correcting jams 16,850 Correcting scan errors 40,440 Loading 33,700 Logging-in control codes (for later reconciliation) 33,700 Program scanner 6,740 Rerunning job due to scan reading errors 33,700 Scanning 23,590 Verifying scan accuracy via reconciling totals 107,840 Verifying scanner accuracy with test run 20,220 Total $337,000 1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following: What type of chart is a Pareto chart? Which activity appears first, in order from left to right? 2. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. If required, round percentages to one decimal place. Quality Cost Classification Activity Cost Percent of Total Department Cost Prevention $ 20220 6 % Appraisal 158390 35 % Internal failure 33700 7 % External failure 20 % Not a cost of quality 107840 30 % Total $ 337000 100 % 3. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place. Activity Cost Percent of Total Department Cost Value-added $ 61 % Non-value-added 39 % Total $ 337000 100 % 4. The department has 33% of its total costs as . costs represent 27% of the total costs. This means there is opportunity for cost savings. costs represent 6% of the total department costs.
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