The final stage on a production line for a repairableproduct comprises an old final test station withaccompanying analysis and repair stations.First Time Yield (FTY) is 0.720.   To improve quality the old test station is replaced by anew model with higher performance.Using the production line final stage parameter values inTable QB1, on the next page, calculate thechange in cycle time   Original final test time 15.0 minOriginal final test effectiveness 0.900New final test time 14.9 minNew final test effectiveness 0.930Analysis time 60.0 minRepair time 15.0 minTest station cost $100,000Analysis station cost $200,000Repair station cost $150,000Test cost $160 per hour per stationAnalysis cost $425 per hour per stationRepair cost $128 per hour per stationWarranty cost $250 per warranty claim perdefective product shipped

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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The final stage on a production line for a repairable
product comprises an old final test station with
accompanying analysis and repair stations.
First Time Yield (FTY) is 0.720.

 

To improve quality the old test station is replaced by a
new model with higher performance.
Using the production line final stage parameter values in
Table QB1, on the next page, calculate the
change in cycle time

 

Original final test time 15.0 min
Original final test effectiveness 0.900
New final test time 14.9 min
New final test effectiveness 0.930
Analysis time 60.0 min
Repair time 15.0 min
Test station cost $100,000
Analysis station cost $200,000
Repair station cost $150,000
Test cost $160 per hour per station
Analysis cost $425 per hour per station
Repair cost $128 per hour per station
Warranty cost $250 per warranty claim per
defective product shipped

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