Answered: Type of Failure Amount of Scrap (Ibs.)…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Plastomer, Inc., specializes in the manufacture of high-grade
plastic film used to wrap food products. Film is rejected and
scrapped for a variety of reasons (e.g., opacity, high carbon
content, incorrect thickness or gauge, scratches, etc.). During
the past month, management collected data on the types of
rejects and the amount of scrap generated by each type. The
following table presents the results:

Draw a Pareto chart to identify which type of failure management should attempt to eliminate first.

Type of Failure
Amount of Scrap (Ibs.)
Air bubbles
500
Bubble breaks
19,650
Carbon content
150
Unevenness
3,810
Thickness or gauge
27,600
Opacity
450
Scratches
3,840
Trim
500
Wrinkles
10,650

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