Question

Question: A company produces a different types of products. The company has implemented a quality improvement program and the company's production for the past three years after the program implementation is shown in the table below. Year 1 2 3 Unit produced/input 32,000 34,000 35,500 Manufacturing cost 278,000 291000 305,000 Percent Good quality 78% 83% 905 Only 25% of the defective products can be reworked at a cost of $2 per piece. Compute the manufacturing cost per unit for each of the three years and indicate the annual percentage increase or decrease resulting from the quality management program. (Answer: $10.54, $9.90,$9.34, 6.1%, 5.7%) 1-1 . Assume the total processing cost per product is $18. They produce 650 units per week and average weekly yield is 90%. Only 25% of the product can be reworked at a cost of $3.75. (a) Computer the quality productivity ratio (answer: 5.11) (b) Computer QPR if the processing cost is reduced to $16.50 and the rework cost is $3.20 (answer: 5.58) (c) Compute QPR if the product yield is 93% (answer: 5.24) (d) Compute QPR if the production is increased to 800 each week. (answer: 5.11) 2 In an initial survey designed to estimate the percentage of time air-express cargo loaders are idle, an analyst found that loaders were idle in 6 of the 50 observations. (a) What is the estimated percentage of idle time? (answer: 0.12) (b) Based on the initial results, approximately how many more observations would you require to estimate the actual percentage of idle time to within 5% with a confidence of 95%? (answer: 113 more observations)

Answer 1