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(a)You've just been employed as a quality engineer by DITAutomotive Inc

Accounting

(a)You've just been employed as a quality engineer by DITAutomotive Inc., manufacturers of Automotive parts. You have been assigned to the paint shop and your primary function is to support the corporate cost reduction programme. Table 4.0 details the defects by defect type for the past four quarters which you have gathered from the Quality database. Totals Quarter 1 44 10 138 Quarter 3 12 4 Quarter 4 32 207 145 Defect Description Orange Peel Scratch Dirt In Paint Thin Paint Sag Sealer Under Off-Colour Totals Quarter 2 32 0 159 17 76 6 16 296 38 6 5 252 6 38 17 6 290 57 11 3 271 1109 Table 4.0: Defect Count by Defect Type (i) Using the total dataset available for the last four quarters, manually construct and fully label al pareto chart to present at the next meeting of the cost reduction programme team. (5 marks) What are your key insights and recommendation from analysis of this pareto chart: (3 marks) (iii) The financial controller asked to attend the cost reduction programme meeting. After your presentation, she handed out a page with the cost to fix each of the offending defoet types. This data is outlined in Table 4.1. What changes, if any, does this new information require that you make to your recommendations outlined in part (ii) (4 marks) Part Description Orange Peel Scratch Dirt In Paint Thin Paint Sag Sealer Under Off-Colour Standard Cost (€) 150 40 10 50 100 75 50 Table 4.1: Financial Controller's Standard Costs

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1)

DEFECT Q1 Q2 Q3 Q4 TOTAL

ORANGE PEEL 44 32 12 32 120

SCRATCH 10 0 4 6   20

DIRT IN PAINT 138 159 207 145   649

THIN PAINT 11 17 6 17   51

SAG 38 76 38 57 209

SEALER UNDER 6 6 17 11 40

OFF COLOR 5 6 6 3 20

1109

2 ) DIRT IN PAINT AND SAG ARE THE HIGHEST CONTRIBUTORS TO TOTAL NUMBER OF DEFECTS AND IF WE CUT THESE TWO IT WILLL MINIMISE NUMBER OF DEFECTS .. SO WE SHOULD TRY TO REDUCE THESE TWO...

3)

DEFECT Q1 Q2 Q3 Q4 TOTAL STANDARD COST TOTAL COST

ORANGE PEEL 44 32 12 32 120 150 18000

SCRATCH 10 0 4 6   20 40 800

DIRT IN PAINT 138 159 207 145   649 10    6490

THIN PAINT 11 17 6 17   51 50 2550

SAG 38 76 38 57 209 100 20900

SEALER UNDER 6 6 17 11 40 75 3000

OFF COLOR 5 6 6 3 20 50 1000

1109

SAG IS CRITICAL DEFECT , THAT HAS SIGNIFICANT CONTRIBUTION TO NUMBER OF DEFECTS TO COST OF REPAIIR..