Determine the weekly product yield of good-quality cabinets

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Reference no: EM13926370

Develop a fishbone diagram for the possible causes of your car not starting.

Problem 1: The Omega Shoe Company manufactures a number of different styles of athletic shoes. Its biggest seller is the X-Pacer running shoe. In 2008 Omega implemented a quality-management program. The company's shoe production for the past three years and manufacturing costs are as follows.

 

Year

 

2008

2009

2010

Units produced/input

  32,000 

 34,600 

 35,500 

Manufacturing cost

$278,000 

291,000 

305,000 

Percent good quality

     78%

     83%

     90%

Only one-quarter of the defective shoes can be reworked, at a cost of $2 apiece. Compute the manufacturing cost per good product for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program.

Problem 2. The Colonial House Furniture Company manufactures four-drawer oak filing cabinets in six stages. In the first stage, the boards forming the walls of the cabinet are cut; in the second stage, the front drawer panels are woodworked; in the third stage, the boards are sanded and finished; in the fourth stage, the boards are cleaned, stained, and painted with a clear finish; in the fifth stage, the hardware for pulls, runners, and fittings is installed; and in the final stage, the cabinets are assembled. Inspection occurs at each stage of the process, and the average percentages of good-quality units are as follows.

Stage

Average Percentage Good Quality

1

87%

2

91%

3

94%

4

93%

5

93%

6

96%

The cabinets are produced in weekly production runs with a product input for 300 units.

a. Determine the weekly product yield of good-quality cabinets.

b. What would weekly product input have to be in order to achieve a final weekly product yield of 300 cabinets?

Reference no: EM13926370

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