In the production of a part for a printer, four sequential operations are involv
ID: 449272 • Letter: I
Question
In the production of a part for a printer, four sequential operations are involved. Unit processing costs for the operations are $10, $6, $15, and $20, respectively. The first pass yield for each operation is 0.95, 0.90, 0.95, and 0.85, respectively. Unit inspection costs after each operation are $0.50, $2.00, $3.00, and $5.00, respectively.
a) If no inspection is performed, what is the unit cost for an acceptable part?
b) Assume that an inspection process is able to identify all parts correctly. Suppose that inspection is conducted only after the first and second operations. Nonconforming parts are not forwarded to the next operation. What is the unit cost per acceptable part?
c) Suppose that inspection is conducted only after the third operation. Nonconforming parts are not forwarded to the next operation. What is the unit cost per acceptable part?
d) Based on the units costs computed in parts (b) and (c), discuss where, in general, inspections should be conducted.
Explanation / Answer
Solution :
Unit processing costs for the
operation 1 $10,
operation 2 $6,
operation 3 $15
operation 4 $20
First pass yield
operation 1 0.95
operation 2 , 0.90
operation 3 , 0.95
operation 4 0.85
a) If no inspection is performed, what is the unit cost for an acceptable part?
Answer :
b) Assume that an inspection process is able to identify all parts correctly. Suppose that inspection is conducted only after the first and second operations. Nonconforming parts are not forwarded to the next operation. What is the unit cost per acceptable part?
Answer:
c) Suppose that inspection is conducted only after the third operation. Nonconforming parts are not forwarded to the next operation. What is the unit cost per acceptable part?
Answer:
d) Based on the units costs computed in parts (b) and (c), discuss where, in general, inspections should be conducted.
Answer:
Total cost at b = 53.5
Total cost at c = 54
Almost both costs are same.
IF we want a rigorous cost cutting then its better to go with b.Else B or C are ok .Also in C only 1 inspection for operation no 3 which may save time compare to operation B,
Operations Costs in $ Yield Inspection cost in $ Unit cost when no inspection is performed 1 10 0.95 0.5 10 2 6 0.9 2 6 3 15 0.95 3 15 4 20 0.85 5 20Related Questions
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