(Pareto analysis) Leading Edge Computers has identified the following failure costs during 2000:
|
COST OF TYPE OF FAILURE |
|||||
|
Model |
CPU |
Internal Drive |
External Drive |
All Other |
Total |
|
Laptop |
$ 8,000 |
$ 7,000 |
$ 5,000 |
$ 3,000 |
$23,000 |
|
Desktop |
7,000 |
6,000 |
12,000 |
5,000 |
30,000 |
|
Mini |
3,000 |
1,000 |
8,000 |
3,000 |
15,000 |
|
Total |
$18,000 |
$14,000 |
$25,000 |
$11,000 |
$68,000 |
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
b. Which models account for almost 80 percent of all failure costs?
c. Focusing on the models identified in part (b), prepare a table using Pareto analysis to identify the types of failure causing the majority of failure costs. (Hint: Rearrange the cost of failure types in descending order of magnitude.) Use the following headings for your table:
d. Describe the problem areas for which to seek preventive measures first. How, if at all, does this answer reflect the concept of leverage?