Use benchmarking assist with the production defects

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Reference no: EM132255117

1. It took a Wisconsin shipyard 125,000 labor-hours to produce the first of several tugboats that you expect to purchase for your shipping company, Great Lakes, Inc. Boats 2 and 3 have been produced by the company with a learning factor of 85%. At $40 per hour, what should you, as purchasing agent, expect to pay for the fourth unit?

2. Your operational department encounters production defect at the rate of three defects per 1,000 lines of code. During a vendor meeting, you come across another company that is of the same size of yours and in the same industry. This company’s production defect is two defects per 1,000 lines of code. How is the other company’s operation department operating? Is it better than your company (please answer how and why you feel this is occurring). How would use benchmarking assist with the production defects? Ensure the response focuses on benchmarking of quality metrics.

Reference no: EM132255117

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