Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 17, Problem 4P
a)
Summary Introduction
To determine: The percentage of failures.
b)
Summary Introduction
To determine: The number of failures per unit hour.
c)
Summary Introduction
To determine: The number of failures per unit year.
d)
Summary Introduction
To determine: The number of units to fail during the following year.
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Verizon Manufacturing Company spent $410,000 in 2019 to inspect incoming components. Of the $410,000, $250,000 is fixed appraisal costs. The variable inspection cost is $0.20 per component. It takes four components for each finished product. Internal failure costs average $80 per failed unit of finished goods. In 2019, five percent of all completed items had to be reworked. External failure costs average $200 per failed unit. The company's average external failures are one percent of units sold. The company manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ), Verizon contracted Quality-is-Free Consultants, Inc. (QIFC) to study ways to improve product quality and to reduce costs. Upon completion of the study, QIFC recommended automatic inspection equipment that requires a $60,400 annual cost for training and $152,000 for equipment rental and maintenance. The new equipment will eliminate $41,000 of the fixed…
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Chapter 17 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 17 - Prob. 1EDCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - What is the trade-off between operator-performed...Ch. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQ
Ch. 17 - Prob. 10DQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5PCh. 17 - Prob. 6PCh. 17 - Prob. 7PCh. 17 - Prob. 8PCh. 17 - Prob. 9PCh. 17 - What is the reliability of the system shown?Ch. 17 - Prob. 11PCh. 17 - Prob. 12PCh. 17 - Rick Wing, salesperson for Wave Soldering Systems,...Ch. 17 - Prob. 14PCh. 17 - Prob. 15PCh. 17 - What are the expected number of yearly breakdowns...Ch. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 1CSCh. 17 - Prob. 2CSCh. 17 - Prob. 3CS
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