(Pareto analysis) Select Refrigerators has identified the following warranty costs during 2000 according to the type of product failure as follows:
|
Model |
Electrical |
Motor |
Structural |
Mechanical |
Dollars |
|
Chic |
$25,000 |
$27,000 |
$15,000 |
$ 5,000 |
$ 72,000 |
|
Elegant |
28,000 |
32,000 |
26,000 |
6,000 |
92,000 |
|
All others |
8,000 |
15,000 |
6,000 |
9,000 |
38,000 |
|
Total |
$61,000 |
$74,000 |
$47,000 |
$20,000 |
$202,000 |
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:
b. Which model(s) account for the vast proportion of all failure costs? Discuss.
c. Devise a plan to address prioritizing projects regarding development of preventive measures based on the findings in the Pareto analysis you just conducted for Select Refrigerators.