Solve clearly

06.pdf 1 12 100% The normal curve is used for process capability and percentage out of specification Using a normal curve to estimate scrap and rework is an accurate method to estimate scrap and rework costs. Below is the information provided by a widget manufacturing company. Specifications: 0.5530 +0.0025 Process Average: 0.5535 Standard Deviation: 0.0015 Production Rate: 100,000 per year Rework all undersize parts at a cost of $5.25 each. Scrap all oversize parts at a cost of $15.34 each. 1. Assume the production process average is 0.5535. Use the upper and lowe specifications to: a) Calculate the annual cost for reworked parts. b) Calculate the annual cost for scrapped parts.2 100% b) Calculate the annual cost for scrapped parts. b) C) Total Failure Cost =2. Now assume we fix the process and the average is equal to the specification which is equal to 0.5530. Use the upper and lower specifications to: a) Calculate the annual cost for reworked parts. a) b) Calculate the annual cost for scrapped parts. b) C) Total Failure Cost = d) Reduction in Failure Cost