Calculate the hidden cost of the defective parts

Assignment Help Operation Management

Reference no: EM132233001

You're working with the Integrated Aircraft Systems (IAS) at Boeing and have been tasked to determine the hidden cost of defective parts, the DPMO and the current Sigma operating level of IAS. You have collected the following data:- (round to whole number)

1- Daily Production 5500 parts (average price of each part $800.00 per part)

2- Current Yield 95%

3- Variable Costs $4,400,000 (variable costs includes cost of any defective parts)

a. Calculate the hidden cost of the defective parts

b. Calculate the DPMO for the daily production.

c. Determine the Sigma level of operation.

Reference no: EM132233001

Questions Cloud

What is its sustainable growth rate : Question - Roro Corp. has an ROE of 16 percent and a payout ratio of 28 percent. What is its sustainable growth rate

Value adding-non value adding and business value adding : Classify activities of this process in: value adding, non-value adding, and business value adding activities?

What is its internal growth rate : Question - The Boddy Shoppe has an ROA of 6 percent and a payout ratio of 20 percent. What is its internal growth rate

What is the projected addition to retained earnings : The projected sales growth rate is 13 percent. What is the projected addition to retained earnings (in $)

Calculate the hidden cost of the defective parts : Calculate the hidden cost of the defective parts. Determine the Sigma level of operation.

Which aspect of system do you find to be most significant : Review the Juvenile Justice System Structure & Process case flow diagram on the U.S. Department of Justice website. Which aspect of this system do you find.

What will be the dollar balances in the Bad Debt Expense : The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500, What will be the dollar balances in the Bad Debt Expense

What is the correct adjusted ending cash balance : Alpha Company was preparing its month-end bank reconciliation. The cash balance per the general ledger was $1,645. What the correct adjusted ending cash balance

What are the weaknesses of the paper : You also need to add your own comments or evaluations on how well this study is designed. What are the weaknesses of this paper that you would like to address?

User Account

All Pages