a. b. C. d. e. Compute the quality productivity ratio and product cost per pair. Assuming the same costs and percentage of rework apply, compare the above scenario with a scenario with about x = 95% passing the inspection. For reasonable values of x (85% to 100%), graph the QPR as a function of x. For reasonable values of x (85% to 100%), graph the product cost per unit as a function of x. What can you conclude?
a. b. C. d. e. Compute the quality productivity ratio and product cost per pair. Assuming the same costs and percentage of rework apply, compare the above scenario with a scenario with about x = 95% passing the inspection. For reasonable values of x (85% to 100%), graph the QPR as a function of x. For reasonable values of x (85% to 100%), graph the product cost per unit as a function of x. What can you conclude?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:III. Productivity and Quality. Read and analyze each problem. For better presentation, draw
diagrams illustrating the problem.
1. One of the items that the Philippines export is electrical transformers used in electric trains.
Assume that the basic model costs USD 3000 (PhP 180,000) to produce. A plant located in
Batangas typically produces 500 units weekly of this type, but only x = 85% managed to pass
the inspection. About three-fifths of the defective items can still be reworked to meet the
standards at an additional cost of USD 500 (PhP 30,000).
Compute the quality productivity ratio and product cost per pair.
Assuming the same costs and percentage of rework apply, compare the above
scenario with a scenario with about x = 95% passing the inspection.
For reasonable values of x (85% to 100%), graph the QPR as a function of x.
For reasonable values of x (85% to 100%), graph the product cost per unit as a
function of x.
What can you conclude?
a.
b.
C.
d.
e.
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Step 1: Define productivity and quality
VIEWStep 2: Calculate the quality productivity ratio and product cost per pair
VIEWStep 3: Compare scenarios when x=95%
VIEWStep 4: Prepare Graph for QPR as a function of x
VIEWStep 5: Prepare the graph for product cost per unit as a function of X
VIEWStep 6: What can be concluded
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