IR Problem 8.5.xlsx
Problem 8-05 – Instructor Reserve
Oakton Paper Company
Quality Costs and Percentage
Percent Cumulative % Cost
Rejected paper 56.82% 56.82% $375,000
Customer complaints 15.91% 72.73% 105,000
Odd lot 10.61% 83.33% 70,000
Wasted materials 5.91% 89.24% 39,000
Pareto Chart
0.00%
20.00%
100.00%
120.00%
Rejected
paper
Customer
complaints
Odd lot Wasted
materials
Downtime Excess
inspection
Testing costs Quality
Imprv. Trng.
Quality Cost Categories
Pareto Chart for Oakton Paper Co. Percent Cumulative
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