Concept explainers
a)
To determine: The optimal level of inspection.
b)
To determine: The factors that guide the decision of inspection.
Introduction:
An optimal inspection is a situation in which the cost and effort exerted equals the benefits and results obtained from inspection.
c)
To determine: The main consideration in choosing between centralized inspection and on-site inspection.
Introduction:
An optimal inspection is a situation in which the cost and effort exerted equals the benefits and results obtained from inspection.
d)
To determine: The points that are potential candidates for inspection.
Introduction:
An optimal inspection is a situation in which the cost and effort exerted equals the benefits and results obtained from inspection.
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Operations Management (Comp. Instructor's Edition)
- Pareto solution The following table shows the defects identified in the final inspection, during a month, in the soft drink bottles, as well as the number of times these have occurred.arrow_forwardIn response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Costs (in thousands) Last Year This Year Inspection $ 720 $ 909 Quality engineering $ 450 $ 765 Depreciation of test equipment $ 675 $ 270 Rework labor $ 1,080 $ 1,530 Statistical process control $ 0 $ 225 Cost of field servicing $ 1,350 $ 1,260 Supplies used in testing $ 45 $ 81 Systems development $ 720 $ 900 Warranty repairs $ 3,780 $ 1,620 Net cost of scrap $ 630 $ 1,170 Product testing $ 900 $ 1,800 Product recalls $ 3,150 $ 900 Disposal of defective products $ 810 $ 1,080 Sales have been flat over the…arrow_forwardUse Pareto analysis to investigate the following data collected on a printed-circuit-board assembly line: a) Prepare a graph of the data. b) What conclusions do you reach?arrow_forward
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