04 - Solutions to the Springville Herald Case 79 The...

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Unformatted text preview: Solutions to the Springville Herald Case 79 The Springville Herald Case SH2 If we are focusing on quality improvement, we would want to determine the categories which are responsible for the highest proportion of errors. Thus, a Pareto diagram would be most appropriate. Table SH2.1 Advertising Department Customer Service Errors for the Past Calendar Year Type of Error Total Percent Cumulative Percent Copy Error 54 16.9 16.9 Typesetting 53 16.6 33.5 Wrong position 45 14.1 47.6 Ran-in error 30 9.4 57.0 Velox 28 8.8 65.8 Wrong ad 25 7.8 73.6 Wrong date 14 4.4 78.0 Omits 13 4.1 82.1 Rate quote 13 4.1 86.2 Paste-up 11 3.4 89.6 Poor reproduction 8 2.5 92.1 Layout 7 2.2 94.3 Space not needed 7 2.2 96.5 Wrong size 6 1.9 98.4 Wrong manual paste-up 5 1.6 100.0 Total 319 100.0 Pareto Diagram 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Copy Error Typesetting Wrong position Ran-in error Velox Wrong ad Wrong date Omits Rate quote Paste-up Poor reproduction Layout Space not needed Wrong size Wrong manual paste-up Type of Error 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 80 Solutions to the Springville Herald Case SH 2 cont. Almost half the errors are accounted for by copy error, typesetting, and wrong position. If we also include ran-in error and velox, almost two-third of the errors are included. We would suggest that reduction of these errors be focused upon if our goal is improvement in the number of errors committed. The information in Table SH2.1 represents only the frequency of the different types of errors, and does not indicate the importance of each error. Thus, it would be useful to obtain information about the cost of each type of error. If we are focusing on quality improvement, we would want to determine the categories which are responsible for the costliest errors. Thus, a Pareto diagram would be most appropriate. Table SH2.2 Cost of Advertising Errors for the Past Calendar Year Type of Error Amount($000) Percent Cumulative % Ran-in error 108.2 20.3 20.3 Wrong position 74.9 14.0 34.3 Paste-up 59.4 11.1 45.4 Wrong ad 53.6 10.0 55.4 Typesetting 53.1 10.0 65.4 Omits 36.5 6.8 72.2 Wrong date 35.9 6.7 78.9 Copy Error 32.6 6.1 85.0 Velox 23.3 4.4 89.4 Wrong manual paste-up 16.5 3.1 92.5 Poor reproduction 13.0 2.4 94.9 Space not needed 12.9 2.4 97.3 Rate quote 5.3 1.0 98.3 Wrong size 5.3 1.0 99.3 Layout 3.0 0.6 99.9 Pareto Diagram 0% 5% 10% 15% 20% 25% Ran-in error Wrong position Paste-up Wrong ad Typesetting Omits Wrong date Copy Error Velox Wrong manual paste-up Poor reproduction Space not needed Rate quote Wrong size Layout Type of Error 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Solutions to the Springville Herald Case 81 SH2 cont. The category that is costing the most is ran-in error. The five costliest categories, ran-in error, wrong position, paste-up, wrong ad, and typesetting, account for almost two-thirds of the total cost of advertising errors for the past calendar year....
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This homework help was uploaded on 04/09/2008 for the course ENGR, STAT 320, 262, taught by Professor Harris during the Spring '08 term at Purdue University.

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04 - Solutions to the Springville Herald Case 79 The...

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