Explain what is the cost associated, Operation Management

Assignment Help:

Your company, ABC Company, uses 100% inspection for all materials and requires zero defect quality of all its vendors. If bad parts are found, it cost $1.00 per part to inspect the entire lot. A decision then must be made to accept or reject the lot.

Suppose vendor XYZ sends a lot of materials with 5% defective parts to ABC Company although it is required to send "zero defects". ABC inspects the lot and decides to use the materials. However, accepting the bad lot of material causes problems which costs ABC

Company $60 per bad part to correct.

If the lot size is 10,000 pieces then

What is the cost associated with 100% inspection of the lot? =

What is the cost associated with not inspection of the lot? =

PROBLEM 2

If average fraction defect produced in a process is 0.03 and standard deviation of defect is 0.001 then find the upper control limit and lower control limit of the p-chart for process control (see page 315 13th ed for details).

UCL of p = p + 3 x (std. dev). =

LCL of p = p - 3x ( std. dev) =

PROBLEM 3

A lathe machine which has a natural variation due to vibration given by std. dev (sigma) = 0.0001". This machine has been chosen to machine a straight pin of 1.000" diameter (nominal design) with a tolerance of +/- 0 .0001".

45 samples are tested and the grand mean ( x double bar) is determined to be 1.000" . The subgroup size for the test samples is 3. (A2 comes from the table on page 320 for subgroups of 3). R bar for the range is given as .005. Use the formulas on page 320 and 325 to calculate the items below.

Specification limits are the nominal design plus the tolerance (upper specification limit) and the nominal minus the tolerance (lower specification limit)

Determine:

• 1. Upper specification limit =

• 2. Lower specification limit =

• 3. Upper Control Limit (UCL) for X bar =

• 4, Lower Control Limit (LCL) for X bar =

• 5. Process Capability CP= (USL-LSL)/6 (sigma) =


Related Discussions:- Explain what is the cost associated

Define a solid business strategy includes, 1.__?__________ are the basic un...

1.__?__________ are the basic unit of analysis and the focus of nonmarket action 2. The market environment of business includes___________.? 3. Firms typically deal with nonm

Siting departments for process layout - manufacturing, Siting Departments f...

Siting Departments for Process Layout - Manufacturing One of the most significant features of the siting of departments in a process layout is its surprising complexity. Even

Explain foreign domestic investment confidence index, How is foreign domest...

How is foreign domestic investment confidence index useful to businesses?

Explain the 5-s practice, Explain the 5-S practice for improving both the p...

Explain the 5-S practice for improving both the physical and thinking environment of an organisation. The 5-S practice is an approach to achieving an organised, clean and stand

Explain what conflicts might you anticipate, As CEO of Ashford Medical Cent...

As CEO of Ashford Medical Center, the Board has authorized you to work with the Medical Director, the Chief of Staff, and Medical Staff in the development of an exciting new progra

Explain manager able to overcome your resistance, Managers, think back to a...

Managers, think back to a time when a manager announced a change that you, the employee, did not want to adopt. What was the reason(s) for your resistance to change? Was the manage

What type of strategy will you utilized to meet this demand, Dell Computers...

Dell Computers is known for revolutionizing the personal computer market using mass customization. This company can turn out a huge volume of computers while still having a variety

Product layout., what is product interval time product duration?

what is product interval time product duration?

Explain simple to state and very difficult to execute, The Assignment is at...

The Assignment is at the same time very simple to state and very difficult to execute. It is designed to allow you to use all the tools of strategy and analysis that you have learn

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd