Question

Question 10: Froberg Aerospace, LLC is starting the production of their small satellite multi-mode micropropulsion system. The production process starts with 400 micropropulsion systems’ per month. The percentage of good micropropulsion’s each month averages 85 percent and the percentage of poor-quality that can be reworked is 5 percent. Froberg Aerospace, LLC wants to know the monthly product yield and the effect on productivity if the monthly percentage of good-quality micropropulsion systems’ was increased to 96 percent.

If product quality is 85 percent and only 5 percent of the defective can be reworked, the yield will be:

Y= __________

If product quality increased to 96 percent good micropropulsions, the yield will be:

Y=_____________

Froberg Aerospace, LLC has a direct manufacturing cost per unit of $5,000.00, and micropropulsion system’s that are of inferior quality can be reworked for $300 per unit. As stated above, 400 micropropulsion system’s are produced per month, and 85 percent (on average) are of good quality and 15 percent are defective. Of the defective micropropulsion system’s, only 5 percent can be reworked to yield good-quality products. Through its quality management program, Froberg Aerospace, LLC has discovered a problem in its production process that, when corrected (at a minimum cost), will result in an increase in the good-quality products to 95 percent. Froberg Aerospace, LLC wants to assess the impact on the direct cost per unit of improvement in product quality.

The original manufacturing cost per micropropulsion system is:

Product Cost= _______________

The manufacturing cost per micropropulsion system with the quality improvement is:

Product Cost=_______________

Discuss: With minimal investment in labor and equipment in order to improve the production process as a result of the quality management program’s advice, what was the result Froberg Aerospace, LLC could observe with regards to their product cost per unit?

Froberg Aerospace, LLC wants to determine the product input in order to achieve a product yield of 400 good-quality multi-mode micropropulsion systems. Given that the percentage of good micropropulsion’s each month averages 85 percent and the percentage of poor-quality that can be reworked is 5 percent, what would be the approximate amount of input the production process should start with in order to yield 400 good-quality units?

Input= ____________

Answer 1

Yield is calculated using the following formula.

Yield = ((Total units)×(%good units))+((Total units)×(1-%good units)×(% reworked units))

When product quality was 85% and reworkable units were 5%, the yield Y according to the formula was

When product quality got increased to 96%, the yield Y became

which implies the new Yield is 384.

Product cost = [((Direct manufacturing cost)×(Total units))+((rework cost)×(reworked unit))]÷[Yield]

Direct manufacturing cost = $5000

Rework cost = $300

When product quality was 85% and reworkable units were 5%, Product cost was

When product quality was increased to 96%, the cost became

The approximate amount of input to yield 400 good quality products is to be determined. Let the approximate amount of input be x.

So

or

or

Approximate amount of input will be 467 units inorder to produce 400 good quality units.