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A workstation has a production rate of 1 0 0 parts / hour and runs for 7 hours. The direct manufacturing cost is $ 4

A workstation has a production rate of 100 parts/hour and runs for 7 hours. The direct manufacturing cost is $40/part. Only 85% of the parts conform to specifications (first-pass yield). From the non-conforming parts, 80% can be reworked into an acceptable product, and the rest is scrapped; the cost of this additional processing is $10/part.
a. How many good parts are produced during the shift?
b. What is the manufacturing cost per shift and per good part produced?
An improvement project reduced variability and the first-pass yield increased to 90%. The percent on defective parts that can be reworked remains at 80%. After this improvement:
c. How many good parts are produced per shift?
d. What is the manufacturing cost per good part produced, in total per good part produced?
e. What is the reduction in manufacturing cost per part (in US$ and in percent)?
f. What is the increase in production per shift (in units and in percent)?

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