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 common-size financial statement, What is a "common-size financial s...

What is a "common-size financial statement" and how would it assist you to manage your business successfully?

Rapid innovation - customers needs for a product, Rapid innovation - Custom...

Rapid innovation - Customers Needs for a Product The readiness with which the operations system can generate new products and services, and get them to market quickly. A study

Explain key dimensions of the general environment, Compare and contrast the...

Compare and contrast the key dimensions of the general environment, the task environment and the enacted environment of an organization.

Explain reputation and credibility pressures, When JetBlue left their custo...

When JetBlue left their customers sitting on the tarmac for hours on Valentine's Day, and their CEO was ultimately terminated as a result, the company was responding to (pick the b

Explain network design is a key business decision, Network design is a key ...

Network design is a key business decision as well as a technological decision. Why? Provide an example of a company you believe has a good network design, providing supporting rati

How to use approximation formulas for your calculation, The Northern Emerge...

The Northern Emergency Computer Support has a call center with 10 customer service representatives. Historical statistics show that the durations of customer calls are exponentiall

What are the various managing inventory tools, Q. What are the various mana...

Q. What are the various managing inventory tools? Raw material Materials and elements used to assemble or manufacture finished goods. Work-in-progress Incomplete f

Explain important to understand the categorical imperative, Duty is the pri...

Duty is the primary view of this ethical position. It will be important to understand the categorical Imperative and that reason or rational thought must drive this theory. As you

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