Compute the quality productivity ratio

Reference no: EM1375758

Airphone, Corporation Produces cellular telephones at a processing cost of $47 each unit. The firm manufactures an average of 250 phones per week and has a yield of 87 percent good-quality phones, resulting in 13% defective phones, all of which can be reworked. The cost of reworking a defective telephone is $16

a. Compute the quality-productivity ratio (QPR)
b. Compute the QPR if the company increased the production rate to 320 phones per week while reducing the processing cost to $42, reducing the rework cost to $12, and increasing the product yield of good quality telephones to 94%.

Reference no: EM1375758

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