- Construct a Pareto diagram for the analysis of the external failure costs for a wireless telephone manufacturer using the following data:
|
Type of Cost
|
Dollars (in Thousands)
|
|
Customer Complaints
|
20
|
|
Returned Goods
|
30
|
|
Retrofit costs
|
50
|
|
Warranty claims
|
90
|
|
Liability costs
|
10
|
|
Penalties
|
5
|
|
Customer goodwill
|
25
|
Interpret the diagram and describe the managerial implications of this analysis.
- You must provide a proper interpretation of the results (such as that of Scatter plot and Pareto diagram)
2. Draw a fishbone diagram to determine the root causes of inventory stock out in a wholesale distribution environment. OR, if you work for a manufacturing firm, you can create the similar diagram to determine the root causes of stock out of raw materials.
- You must provide a proper interpretation of the results (such as that of Scatter plot and Pareto diagram