EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 6, Problem 14DRQ
Why are routing and
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It is January 1 of year 0, and Merck is trying to determine whether to continue development of a newdrug. The following information is relevant. You can assume that all cash flows occur at the ends of therespective years.■ Clinical trials (the trials where the drug is tested on humans) are equally likely to be completed in year1 or 2.■ There is an 80% chance that clinical trials will succeed. If these trials fail, the FDA will not allow thedrug to be marketed.■ The cost of clinical trials is assumed to follow a triangular distribution with best case $100 million,most likely case $150 million, and worst case $250 million. Clinical trial costs are incurred at the end ofthe year clinical trials are completed.■ If clinical trials succeed, the drug will be sold for five years, earning a profit of $6 per unit sold.■ If clinical trials succeed, a plant will be built during the same year trials are completed. The cost of theplant is assumed to follow a triangular distribution with best case $1…
1) Under “Costs of Quality”, costs associated with quality can be classified into four categories: appraisal, prevention, internal failures, and external failures. The costs of quality for Corley Motors Logistics is given in the table.
Cost Elements
Amount
Checking outbound boxes for errors
$31,000
Quality planning
$10,625
Downtime due to conveyor/computer problems
$342,125
Incoming product inspection
$21,000
Customer complaint rework
$33,000
Correcting erroneous orders before shipping
$36,550
Quality training of associates
$25,925
Correction of typographical errors--pick tickets
$11,475
a) Classify the quality cost elements given in the table into the different quality cost categories (prevention, appraisal, internal failure, external failure).
b) Total the quality costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure).
c) Using a) and b), suggest which areas…
Note: In chapter 9, section 9.4 of the Stevenson text, the costs of quality are covered; chapter 9 Stevenson lecture power point slide 7 touches upon this topic; see lecture video, 3.55 mins to 4.54 mins.
2) The production process at Hansa Ceylon Coffee fills boxes with dark arabica coffee. The data for the fill weight (in ounces) of eight samples are presented below. A sample size of six was used. The firm’s operations analyst wants to construct X-bar and R-charts to monitor the filling process.
Sample
Sample Mean
Sample Range
1
15.80
0.42
2
16.10
0.38
3
16.02
0.08
4
15.95
0.15
5
16.12
0.42
6
16.18
0.23
7
15.87
0.36
8
16.20
0.40
a) Calculate the upper and lower control limits for the X-bar chart.
b) Calculate the upper and lower control limits for the R chart.
c) Is the process under control? Why or why not?
Note: In chapter 10, section 10.3 of the Stevenson text, control charts for variables are…
Chapter 6 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.2 - MORTON SALT Introduction Morton Salt is a...Ch. 6.3 - FOXCONN SHIFTS ITS FOCUS TO AUTOMATION Foxconn...Ch. 6.3 - FOXCONN SHIFTS ITS FOCUS TO AUTOMATION Foxconn...Ch. 6.3 - Prob. 2.1RQCh. 6.3 - Prob. 2.2RQ
Ch. 6.3 - Prob. 3.1RQCh. 6.3 - Prob. 3.2RQCh. 6.5 - Prob. 1.1RQCh. 6.5 - Prob. 1.2RQCh. 6 - Explain the importance of process selection in...Ch. 6 - Briefly describe the five process types, and...Ch. 6 - Prob. 3DRQCh. 6 - Briefly describe computer-assisted approaches to...Ch. 6 - What is a flexible manufacturing system, and under...Ch. 6 - Prob. 6DRQCh. 6 - Why might the choice of equipment that provides...Ch. 6 - Prob. 8DRQCh. 6 - Prob. 9DRQCh. 6 - Briefly describe the two main layout types.Ch. 6 - Prob. 11DRQCh. 6 - Prob. 12DRQCh. 6 - What is the goal of Line balancing? What happens...Ch. 6 - Why are routing and scheduling continual problems...Ch. 6 - Prob. 15DRQCh. 6 - Prob. 16DRQCh. 6 - The City Transportation Planning Committee must...Ch. 6 - Identify the fixed-path and variable-path...Ch. 6 - Prob. 19DRQCh. 6 - Prob. 20DRQCh. 6 - Prob. 21DRQCh. 6 - Prob. 22DRQCh. 6 - What is cellular manufacturing? What are its main...Ch. 6 - Prob. 24DRQCh. 6 - Prob. 25DRQCh. 6 - Prob. 1TSCh. 6 - What trade-offs are involved when deciding how...Ch. 6 - Who needs to be involved in process selection?Ch. 6 - Prob. 4TSCh. 6 - Prob. 5TSCh. 6 - Prob. 1CTECh. 6 - Prob. 2CTECh. 6 - What are the risks of automating a production...Ch. 6 - Consider an assembly line such as the burrito...Ch. 6 - Prob. 1PCh. 6 - A manager wants to assign tasks to workstations as...Ch. 6 - A manager wants to assign tasks to workstations as...Ch. 6 - A producer of inkjet printer is planning to add a...Ch. 6 - As part of a major plant renovation project, the...Ch. 6 - Twelve tasks, with times and precedence...Ch. 6 - For the given set of tasks, do the following: a....Ch. 6 - A shop works a 400-minute day. The manager of the...Ch. 6 - Arrange six departments into a 2 3 grid so that...Ch. 6 - Using the information given in the preceding...Ch. 6 - Using the information in the following grid,...Ch. 6 - Arrange the eight departments shown in the...Ch. 6 - Arrange the departments so they satisfy the...Ch. 6 - a. Determine the placement of departments fix a...Ch. 6 - Prob. 15PCh. 6 - Develop a process layout that will minimize the...Ch. 6 - Prob. 17PCh. 6 - Rebalance the assembly line in Problem 7. This...
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