Refer to Exercise 13.9. Assume that the company identies poor plant layout as the root cause of

Refer to Exercise 13.9. Assume that the company identifies poor plant layout as the root cause of wait time and move time.
Required:
1. Express an improvement strategy as a series of if-then statements that will reduce the conversion cost per laptop.
2. Assume that you set an MCE target of 75 percent, based on the improvement strategy described in Requirement 1. What is the expected conversion cost per unit? Explain how you can use these targets to test the viability of your quality improvement strategy.

Exercise 13.9

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Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 10 minutes of move time, 20minutes of wait time, and 5minutes of rework time. (All work is done by cell workers.)