Explain How a Pareto Chart Can Identify the Most Important

question 170

Essay

Explain how a Pareto chart can identify the most important causes of errors in a process.

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Definitions:

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested products.

External Failure Cost

Expenses incurred when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.

Quality Cost Report

Internal report that details the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, and failure costs.

Internal Failure Cost

Costs incurred to rectify defects found before the delivery of a product to the customer, including rework, scrapping, and downtime.