1.4 14. For each 100 units of product manufactured, a certain process yields 85

Question

1.4

14. For each 100 units of product manufactured, a certain process yields 85 conforming units, five that must be scrapped, and 10 that must be reprocessed. Each unit scrapped results in a $50 loss: each reprocessed unit requires an extra half hour of processing time. The resource time of producing the original 100 units is 20 hours. (ay Calculate the scrap cost, reprocessing time. and productivity per hour. Productivity should be calculated in tems of conforming units per hour of resource input. (b) A quality improvement program has recently been successfully introduced. For each 100 units manufactured the process now yields95 conforming units, one to be scrapped. and four for reprocessing. Repeat the calculations of paragraph (a) at are the quantitative benefits of the quality effor to costs, ry schedules, and to productivity?

Explanation / Answer

a) Total scrap units = 5

Loss per each scrap unit = $50

Total loss= $250

Time taken reprocessing 10 units = 10 * 30 min= 5 hrs

Total time to produce 95 units = 20+5=25 hrs

Productivity per hour = 95 units / 25 hrs = 3.8 units/hr

b) Total scrap units = 1

Loss per each scrap unit = $50

Total loss= $50

Time taken reprocessing 4 units = 4 * 30 min= 2 hrs

Total time to produce 99 units = 20+2=22 hrs

Productivity per hour = 99 units / 22 hrs = 4.5 units/hr

Productivity is increased in the part b compared to part a.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.