Problem 3 Two processes are available to produce an order of size 8000 products.

Question

Problem 3 Two processes are available to produce an order of size 8000 products. The statistical situations of these two processes are shown in the two figures below. The complete order can produced on any of the processes. LSLT20 USL-24 LSL 20 USL 24 jis = 24 Process B =25 Process A Check and answer the following questions A-What is the target value of Process A 440 )? B- What is the amount of changes in the target value of process A (per unit of standard deviation)? c What is the percentage of Rework in process A? D- What is the target value of Process B (H0.6)? E. What is the amount of changes in the target value of process B (per unit of standard deviation)? F- What is the percentage of Scrap in process B G Assume that the cost of one reworked item is 15 QAR and the cost of one scrap R. What is the cost of producing the order on process A (in terms of item is 10 QA scrap and rework cost only)? which of the following Production Plans is more expensive: Plan A: Produce the whole order (9000 products) in Process A Plan B: Produce the whole order (9000 products) in Process B Plan C: Produce 7000 products on A and 2000 onB

Explanation / Answer

= 100*{1-P[20 < X < 24]}

= 100*{1-P[(20-25)/3 < Z < (24-25)/3]}

= 67.83490121 ~ 68 %

= 100*{1-P[20 < X < 24]}

= 100*{1-P[(20-24)/3 < Z < (24-24)/3]}

= 59.12112197 ~ 59 %

Plan A: 9000 items in process A = 15*9000*68/100+10*9000*68/100 = 153000

Plan B: 9000 items in process B = 15*9000*59/100+10*9000*59/100 = 132750

Plan C: 7000 on A and 2000 on B

= 15*7000*68/100+10*7000*68/100 +15*2000*59/100+10*2000*59/100 = 148500

Thus more expensive plan is A and cost effective plan is B.

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