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

Explain what effective leadership means, Describe what effective leadership...

Describe what effective leadership means to you. Who determines a leader's effectiveness? Provide details and examples to support your thoughts.

Break Even Sales, K Ltd a multi product company, furnishes you the followin...

K Ltd a multi product company, furnishes you the following data relating to the year 2000. First half sales Second half sales Sales Rs.45000 Rs.50000 Total cost Rs.40000 Rs.43000

Success of change initiatives is why many initiatives fail, Failure to anti...

Failure to anticipate and mitigate circumstances that might impede the success of change initiatives is why so many initiatives fail. From a business managers perspective, what doe

Explain forgo economic profit in order to increase social, When is it ok to...

When is it ok to forgo economic profit in order to increase social returns?

Explain which of these costs are associated with quality, Identify signific...

Identify significant costs in the organization like Wal-Mart. Which of these costs are associated with quality? Remember, quality costs are not limited to manufacturing organizatio

Explain about one intentional tort that occurred in sports, Research and te...

Research and tell us about one intentional tort that occurred in sports. Be specific and in-depth with your answer. Be sure to include the who, what, when, why, and where of the in

Explain minimization and maximization problems using lp, What are the simil...

What are the similarities and differences between minimization and maximization problems using LP

Aspects of design: Product, Explain each of the following aspects of design...

Explain each of the following aspects of design Product Job and facilities in detail describing each ones effect on Productivity, as well as the combined effect

Sunshine enterprises case study answers, what is the average value of loyal...

what is the average value of loyal customer at abby''s restaurants?

Explain work-in-process and raw materials are needed, The Bawl Corporation ...

The Bawl Corporation supplies alloy ball bearings to auto manufacturers in Detroit. Because of its specialized manufacturing process, considerable work-in-process and raw materials

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