Chapter 13, Problem 10E

Refer to Exercise 13.9. Assume that the company identifies poor plant layout as the root cause of wait time and move time.

Required:

1. 1. Express an improvement strategy as a series of if-then statements that will reduce the conversion cost per laptop.
2. 2. Assume that you set an MCE target of 75 percent, based on the improvement strategy described in Requirement 1. What is the expected conversion cost per unit? Explain how you can use these targets to test the viability of your quality improvement strategy.