Show the process capability and spc

Assignment Help Business Management

Reference no: EM1366224

Process capability and SPC: Should inspection position be eliminated; cost to inspect

A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests the material that has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position in $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are defected in final product testing.

a. Should the inspection position be eliminated?

b. What is the cost to inspect each unit?

c. Is there benefit (or loss) from the current inspection process? How much?

Reference no: EM1366224

Questions Cloud

How would you change or expand your organization : The organization also provides food, shelter, counseling assistance, money management training, etc. Our goal is to promote physical, emotional, and spiritual growth along with financial and emotional independence.

Impacting how managers and consultants do business : How do you see the powerful little computers impacting how managers and consultants do business?

Sequential designs versus concurrent research designs : drawbacks of using sequential designs versus concurrent research designs?

Smoke from wood-burning stoves is a health hazard : Smoke from wood-burning stoves has become a serious health hazard

Show the process capability and spc : Should the inspection position be eliminated and what is the cost to inspect each unit?

Choosing the economical alternative : Number of years to reach BEP for each project. Decide which project should be selected using the BEP years as standard and if the company needs to support 260,000 customers every year, then which plan should be selected?

Computer and peripheral manufacturing in the united states : Analyze the external business market and its influence on the firm's strategic business continuity plan and include analysis of general, industry, and competitor environments.

Questions based on general business : Important information about General Business Questions - What is the number one reason for global sourcing

San jose mercury news-hypothesis : Find any instances of pseudoreasoning in the following passage either by naming them or, where they seem not to conform to any of the patterns described in the text, by giving a brief explanation of why the pseudoreasons are irrelevant to the poin..

User Account

All Pages