Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

roblem 638608: Do not include anything other than numbers in your responses. For example, do not include comma or dollar sig n your numbers. As

image text in transcribed
roblem 638608: Do not include anything other than numbers in your responses. For example, do not include comma or dollar sig n your numbers. As a rule of thumb, keep 2 decimal places for larger numbers and 3 decimal places for smaller umbers less than 1. Samsung manufactures cellular phones at a processing cost of $202 per unit. Currently, the company produces an average of 2011 phones per day, 90 percent of which are good-quality phones, resulting in 10 percent defective phones, 64 percent of which can be reworked. The cost of reworking a defective phone is $74. They also consider a quality improvement initiative: They can replace a plastic component with a metal one which increases the initial cost of processing phone to $207. but the percentage of defective items decreases to 3 percent. With this quality improvement option, nothing else would be different from the current situation (for example the cost of rework and the percentage of defectives that can be reworked stay the same). Calculate the followings: Number of units reworked daily with current situation: Daily product vield with current situation: Effective production cost per unit with current situation: With the current situation, if the company wants the yield to be 2000, how many phones should they process daly? Number of units rewarked daily with suggested quality improvement options Daily product yied with suggested quality improvement option: Effective production cost per with suggested quality improvement option: Should Samsung should take the suggested quality improvement initiative? (Yes/No)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Marketing

Authors: Nigel Piercy and David Cravens

10th edition

78028906, 978-0078028908

More Books

Students also viewed these General Management questions