Pareto chart and cost of quality report for a service company The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining externa failure costs. The result of the activity analysis is summarized as follows: 1. Select the following Pareto chart of the ER activities. 2. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. preventon, appraisal, internal failure, external failure, and other patient care activitipe 3. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. 4. Determine the percentages of the total ER costs that are value-tdded and non-value-added. 5. The ER has % of its total costs as non-value-added. Internal failure and external failure costs represent % of the total costs
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