Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 8, Problem 3P
Nite-Site, Inc., manufactures image intensification devices used in products such as night-vision goggles and aviator’s night-vision imaging systems. The primary customer for these products is the U.S. military. The military requires that learning curves be employed in the bid process for awarding military contracts. The company is planning to make a bid for 120 image intensifiers to be used in a military vehicle. The company estimates the first unit will require 80 hours of direct labor to produce. The industry learning curve for this particular type of product is 92%. Determine how many hours will be required to produce the 60th and 120th units.
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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 8 Solutions
Operations and Supply Chain Management 9th edition
Ch. 8.S - Compare the use of predetermined motion times for...Ch. 8.S - Prob. 2QCh. 8.S - Prob. 3QCh. 8.S - Prob. 5QCh. 8.S - Prob. 6QCh. 8.S - Prob. 7QCh. 8.S - Prob. 1PCh. 8.S - A sewing operator at the Gameday Sportswear...Ch. 8 - Prob. 1QCh. 8 - Prob. 2Q
Ch. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - What are some of the ways companies achieve...Ch. 8 - Prob. 10QCh. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 20QCh. 8 - Prob. 21QCh. 8 - Prob. 22QCh. 8 - Prob. 23QCh. 8 - Prob. 24QCh. 8 - Prob. 25QCh. 8 - Prob. 27QCh. 8 - Prob. 28QCh. 8 - Prob. 33QCh. 8 - Prob. 34QCh. 8 - Discuss some of the uses and limitations of...Ch. 8 - Prob. 1PCh. 8 - Professor Cook teaches operations management at...Ch. 8 - Nite-Site, Inc., manufactures image...Ch. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12P
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