Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 25

Pareto Diagram (Chart) The following causes of absenteeism for a fellow student are for the year just completed:

Cause of Absenteeism	Occurrences
Personal illness	12
Child’s illness	26
Car broke down	8
Personal emergency	32
Overslept	9
Unexpected visitor	11

Required Construct a Pareto diagram (chart). In conjunction with the framework presented in Exhibit 17.2 what role is played by the use of these diagrams?

Step 1 of 2

Management and Control of Quality

Quality is explained as a term associated with customer satisfaction. It is the total level of satisfaction any customer gets from any organization’s products or service. There are two components of quality- Design Quality and Performance Quality. There are various approaches to setting quality related expectations and among those alternatives one is the Cost of Quality (COQ) Reporting. It provides relevant cost and revenue data used for decision-making purposes.