Prob08-11.xlsx
Problem 8-11
Beechmount Software Corporation
Quality Costs and Percentage
Percent Cumulative % Cost
Returns 38.92% 38.92% 360,000
Total Costs 925,000
Original Data
Category Annual Loss
Rework $200,000
Rejected disks (loaded) 30,000
Rejected disks (blank) 18,000
Inspection costs (extra)–incoming 136,000
Rework 21.62% 60.54% 200,000
Insp. – In. 14.70% 75.24% 136,000
Sys. Downtime 9.51% 84.76% 88,000
Insp. – Out 7.03% 91.78% 65,000
Rej.disks (blank) 1.95% 100.00% 18,000
100.00%
120.00%
40.00%
45.00%
Pareto Chart for Beechmount Software Corp.