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The following cost-of-quality data were collected at the installment loan department of the Kenney Bank. Classify these data into the appropriate cost-of-quality categories. Loan Processing
The following cost-of-quality data were collected at the installment loan department of the Kenney Bank. Classify these data into the appropriate cost-of-quality categories. Loan Processing 1. Run credit checks: Amount Cost Classification $2,185.59 Select 2. Review documents: Select- $3,507.25 $1,229.60 -Select- 3. Make document corrections; gather additional information: 4. Prepare tickler file; review and follow up on titles, insurance, second meetings: $166.52 Appraisal 5. Review all output: $2,286.91 6. Correct rejects and incorrect output: $482.10 External failure $75.65 7. Reconcile incomplete collateral report: 8. Handle dealer problem calls; address associate problems; research and communicate information: $2,055.30 Internal failure downtime: $562.94 Prevention 9. Compensate for sy 10. Conduct training: Loan Payment $1,850.83 $824.33 Select- V $878.92 -Select V 1. Receive, inspect, and process payments: 2. Respond to inquiries when no coupon is presented with payments: Loan Payoff 1. Receive, inspect, and process payoff and release documents: 2. Research payoff problems: $231.03 Select $15.95 Select Calculate the amount and the percent of total. Round your answers for dollar values to the nearest cent. Round your answers for percentage values to two decimal places. Name Amount Percent of Total Total Appraisal costs $ % Total External failure costs $ % Total Internal failure costs $ % Total Prevention costs $ % Choose the correct Pareto chart. The correct Pareto chart is -Select- A. Amount, $ 11000 -10000 9000 F8000 17000 F6000 5000 14000 3000 2000 F1000 Appraisal External failure Internal failure Prevention B. Amount, $ H11000 10000 19000 F8000 7000 6000 50CO 4000 13000- -2000 -1000 Appraisal External failure Internal failure Prevention uld you make to management? activities appear to be keeping failure costs relatively low; however the cost of these activities can be lowered by: -Select- -Select- better appraisal better prevention ithmic faster fixing of external failures faster fixing of internal failures 8000 77000 F6000 5000 F4000 3000 - 2000 11000 Appraisal External failure Internal failure Prevention D. Amount. $ 611-000 10000 9000 8000 4 17000 F6000 -Select Appraisal Extemal failure Internal failure Appraisal External failure Internal failure Prevention Prevention W uld you make to management? activities appear to be keeping failure costs relatively low, however the cost of these activities can be lowered by -Select- -Select
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