JCP Limited produced motors in a four stage process over two lines. The motors are inspected following each stage with percentage yields (on average) of goods quality units as follows:

Stage Average Percentage Good Quality

1 0.93

2 0.95

3 0.97

4 0.92

The company wants to know the daily yield for product input of 100 units per day on line number one. Further, it would like to know how many input units it would have to start with each day to result in a final daily yield of 100 good quality units.

On line number two, a weekly product input of 1700 units was produced. The average percentage of good-quality products is 83 percent. Of the poor-quality products 60 percent can be reworked and sold as good quality products.

Requirement:

For line one:

a. Determine the product yield (Y)

b. Determine the product input (I) that would be required to achieve a product yield of 100 motors.

For line two:

c. Determine the product yield (Y)

d. Determine the increase %G to 92 percent.

e. Give a detailed analysis of which line

The company wants to produce a small motor factory in addition to the current two lines. The processing cost is $30 per unit. Defective motors can be reworked at a cost of $12each. The company produces 100 motors per day and averages 80 percent good-quality motors, resulting 20 percent defects, 50 percent of which can be reworked prior to shipping to customers. The company wants to examine the following effect:

a. Increasing the production rate to 200 motors per day.

b. Reducing the processing cost to $26 and the rework cost to $10.

c. Increasing through quality improvement, the product yield of good-quality products to 95 percent.

d. The combination of 2 and 3