(Quality costs; Pareto analysis) Altazar Electronics has identified the following 2010 warranty costs for one of the company products. The information has been categorized according to the type of product failure.
|
Model |
Electrical |
Motor |
Structural |
Mechanical |
Total Dollars |
|
Chic |
$ 45,360 |
$ 50,000 |
$26,760 |
$11,200 |
$133,320 |
|
Elegant |
57,640 |
64,000 |
52,200 |
12,000 |
185,840 |
|
Others |
17,660 |
33,180 |
12,360 |
21,640 |
84,840 |
|
Total |
$120,660 |
$147,180 |
$91,320 |
$44,840 |
$404,000 |
a. Rearrange the rows in descending order of magnitude based on the Total Dollars column, and prepare a table using Pareto analysis with the following headings:
|
Model |
Dollars |
% of Total |
Cumulative % of Total |
b. Which model(s) account for the vast proportion of all failure costs? Discuss.
c. Devise a plan for Altazar Electronics to address the prioritization of preventive measures based on the findings in the Pareto analysis.