4. A camera manufacturer has a policy of inspecting every incoming camera lens t

Question

4. A camera manufacturer has a policy of inspecting every incoming camera lens to ensure it conforms to specifications (a) Do you agree with this policy? If you want to question the wisdom of the policy, (10 points) (b) A new manager of the manufacturer uses past inspection data concerning the pro- portion of the defective camera lens to construct p chart which turns out to be stable. The average fraction of defective lens was found to be 0.003. It costs $0.60 to repair what information do you need? before leaving the factory. Use the kp rule to for incoming camera lens determine wW pollcy snou (10 points)

Explanation / Answer

According to Deming’s “kp rule” there are two options available for inspection.

To select whether to go for 100% inspection or no inspections depends upon the value of k and p

Where, p is average fraction of defective items, k1 is cost of inspection and k2 is the cost of repair due to failure of inspection.

If the value of k1/k2 is more than p, do not inspect.

If the value of k1/k2 is less than or equal p, do 100% inspection.

Now coming on to the questions:

1. To determine whether to do the 100% inspection or not, cost of inspection is needed, which is not been provided. Therefore, without finding out the cost of inspection, the value of k1/k2, can not be calculated, and its not wise a policy by the company to do the 100% inspection.

2. Given; p = 0.003

k2 = $0.6

But, the value of k1, the initial cost of inspection is not provided, then it’s not possible to comment on the correct policy to be selected.

However, lets assume, if k1 = $0.2, then k1/k2 = 0.2/0.6 = 0.33 (No need for inspection)

And if k1 = $0.0012, then k1/k2 = 0.0012/0.6 = 0.002 (100% inspection is required)

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