Quality management - logistic
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Homework 1 Question ss-1 and Question 1-1 (b, c, d, f,j), 1-4, 1-8, 1-20 in Page 41-46 Q. ss-1: The factory ordered 5,500 units of raw material from the supplier. The product requires three processing steps (screening, drilling, and assembling). The first-pass yields (proportion conforming) for each operation are given by p1 = 89%, p2 = 97%, and p3 = 91.5%, respectively. The unit production costs for each operation are u1 = $0.05, u2 = $3.5, u3 = $18, respectively. (a) How many acceptable products will be produced? What is the unit cost per conforming product? (b) Suppose, through quality improvement efforts, the first-pass yield for each operation is improved to the following levels: p1 = 99.95%, p2 = 99.5%, and p3 = 99.5%, How many acceptable products will be produced? What is the unit cost per conforming product? Relative to part (a), determine how much improvement in capacity has taken place. (c) Management is contemplating a 100% inspection process after each operation. Assume that the inspection process is completely reliable. Unit inspection costs after operations 1, 2, and 3 are $0.01, $0.22, and $0.58, respectively. Nonconforming parts are not forwarded to subsequent operations. Find the unit cost per conforming product for the improved process. Operation 1 Milling Operation 2 Drilling Operation 3 Painting P, -91.5% P. 89% u S0.05 P 97% U$3.5 US18 Q. SS-1 Question A Given data, Order quantity - 5500 First-pass yield after milling = 0.89 conforming quantity after milling. = 5500 x 0.89 = 4895. The conforming quantity entering drilling = 4895 Also, First-pass yield after drilling=0.97 Thus, the conforming quantity after drilling, = 4895 x 0.97 = 4748.15 The conforming quantity entering painting = 4748.15 Also, the first-pass yield after painting =0.915 Thus, the conforming quantity after painting = 4748X0915= 4344.55 The conforming quantity entering packing 44.55 Thus, the number of acceptable products that are produced, = 43 answer 1) The Total cost = Sum(production quantity x unit production cost) summed over the four operations = (5500 x 0.05)+(4895 (4748.15 X 18) = 102874.2 So, the number of acceptable products that are produced. = 4344 Therefore, the unit cost per conforming product, 102874344 = $23.68 (Answer 2) Question B. Carrying out the same steps as in question (a) So, the number of acceptable products that is produced, = 5500 x 0.9995 x 0.995 995 -2.41- 5442 (Answer 3) The unit cost per conforming product, = total cost' no. of acceptable products Here, the total cost = (5500 x 0.05) + (5497 25 x 3.5) + (469x 18)= 117971.055 And the unit cost per conforming ploduct 17971.055/5442.41 = $21.676 (Answer 4) So, the improvement in capacity is = 5442 - 4344 = 1098 Answ5a) This me as that the percentage improvement is, = 100 x (1098/4344) = $_276% answer 5b) Question The Total inspection cost is calculated as, = Sum (production quantity x unit inspection cost) summed over the four operations = (5500 x 0.01) + (5497.25 x 0.22+469.76 X 0.58) = 4436.855 So, now the per unit inspection cost, = 4436.8512=0.815 Thus, the unit cost per conforming product = 0.815 Answer = $22.49 (Answer 6) The cost asked for is for the improved process and so production quantities are taken wom Part (b)