Question

The following information was collected to determine what was causing paint defects in an automobile repair shop. The number

one question 2 parts. The chart needed is Pareto Chart.

Part 2: If it costs the shop $27 to fix one dirt defect, $22 to fix a peel defect, and $102 to fix a sag defect. Determine wh

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Answer #1

1. Pareto Chart:

100% 100% 80 % -60% 40 % 20 % 40% Peeling Sealer Thin Paint Dirt in Paint Scratches Off-Color Other Causes Defects -- Cumulat

Defects that are in high priority list are: Dirt in Paint, Sag, Peeling that together constitute around 60% of the total cumulative defects. Hence, it is imperative to correct these defects on high priority basis.

The highest priority defect among all, of course is, the dirt in paint defect with the highest count.

2. Cost needed to correct defects:

Dirt in Paint Cost = 82 * $27 = $2,214

Peel defect cost = 29 * $22 = $638

Sag defect cost = 39 * $102 = $3,978

Sag defect being the most expensive among the three should be corrected first.

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