EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 9, Problem 3P
Summary Introduction
To determine: The cost
Introduction: Process layout refers to the plan or graphical representation about the design of the floor of a plant. It helps the firm to improve the efficiency of the design and it would help to improve the location of the departments.
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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 9 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Ch. 9 - Prob. 1EDCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQ
Ch. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Roy Creasey Enterprises, a machine shop, is...Ch. 9 - Adam Munson Manufacturing, in Gainesville,...Ch. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Six processes are to be laid out in six areas...Ch. 9 - Stanford Rosenberg Computing wants to establish an...Ch. 9 - Illinois Furniture, Inc., produces all types of...Ch. 9 - Prob. 14PCh. 9 - The Action Toy Company has decided to manufacture...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 1CSCh. 9 - Prob. 2CSCh. 9 - Henry Coupe, the manager of a metropolitan branch...Ch. 9 - Prob. 4CSCh. 9 - Prob. 1.1VCCh. 9 - Prob. 1.2VCCh. 9 - Prob. 1.3VCCh. 9 - Prob. 1.4VCCh. 9 - Prob. 1.5VCCh. 9 - Prob. 1.6VCCh. 9 - Prob. 2.1VCCh. 9 - Prob. 2.2VCCh. 9 - Prob. 2.3VC
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