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HW #2 A four-stage process must produce 500 units per day. Units progress in order (stage 1, then stage 2, stage 3, then stage 4).
HW #2 A four-stage process must produce 500 units per day. Units progress in order (stage 1, then stage 2, stage 3, then stage 4). At each stage, a percentage of the units are defective, and a percentage of the defective units can be reworked. Those that cannot be reworked are scrapped. The table below shows the percent defective for each stage, the percentage of defective units that must be scrapped. In addition, the table gives the cost to process the unit at each stage, and then the cost of reworking a defective unit, and the cost of scrapping a unit. You can assume that a defective item is either reworked or scrapped, not both. a) Sketch a diagram that indicates the exact quantity of units entering and exiting each stage, including the rework area in each stage (similar to the ones presented in Module 2). b) Develop an Excel sheet that calculates values in the blank cells below. c) Use the info below and find the number of machines you need at each stage (including rework specialists) needed to get an output of 500 units from the overall system. d) Recalculate parts b and c (namely, average cost per
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