Decrease resulting from quality management program

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Reference no: EM132141836

A company produces a different types of products. The company has implemented a quality improvement program and the company's production for the past three years after the program implementation is shown in the table below. Year 1 2 3 Unit produced/input 32,000 34,000 35,500 Manufacturing cost 278,000 291000 305,000 Percent Good quality 78% 83% 905 Only 25% of the defective products can be reworked at a cost of $2 per piece. Compute the manufacturing cost per unit for each of the three years and indicate the annual percentage increase or decrease resulting from the quality management program. 1. Assume the total processing cost per product is $18. They produce 650 units per week and average weekly yield is 90%. Only 25% of the product can be reworked at a cost of $3.75. (a) Computer the quality productivity ratio. (b) Computer QPR if the processing cost is reduced to $16.50 and the rework cost is $3.20. (c) Compute QPR if the product yield is 93%. (d) Compute QPR if the production is increased to 800 each week. 2 In an initial survey designed to estimate the percentage of time air-express cargo loaders are idle, an analyst found that loaders were idle in 6 of the 50 observations. (a) What is the estimated percentage of idle time? (b) Based on the initial results, approximately how many more observations would you require to estimate the actual percentage of idle time to within 5% with a confidence of 95%?

Reference no: EM132141836

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