The amount of rework replacement activity during the initial production of a new configuration is proportional to the integrity levels of initially released datasets The left side of the attached V diagram represents the dataset release cycle The right side of the V represents the build cycle The cost of datasets ($200,000) plus the cost of producing the physical items ($100,000) would total $300,000 if 100 conformance was achieved during the first build cycle However, this was not the case The first build cycle resulted in physical item rework volume and costs as noted on the right side Required dataset changes and costs are noted on the left side Additional information 10 of the integrated system results must be reworked 10 of modules assemblies must be reworked 10 of all components parts must be reworked 10 of the binary code raw material must be reworked 20 of all datasets must be corrected to resolve the nonconformances detected during manufacture of the first unit The cost of reworking physical items is double the initial cost The cost of correcting a dataset is double the cost of initial creation Questions Calculate the extra cost required to correct the datasets Calculate the extra cost required to rework the physical items Calculate the cost of the first unit including the initial datasets and build costs, and all rework costs and dataset requirements correction costs If the corrected datasets from the first build cycle were used to build the second unit, what would be the expected cost of the second unit Calculate the cost of the second unit if rework costs and dataset and requirement correction costs are the same as experienced with the first unit If the planned sales price of each unit is $250K, what will the profit or loss be for the first two units based on your answers to questions 3) and 5) Cost to Initally Creste and Release Drtacts $200,000 Coct of Inithal Producton wh No Rowork $100,000 System Application Integrated 10 of costs

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The amount of rework/replacement activity during the initial production of a new configuration is proportional to the integrity levels of initially released datasets. The left

The amount of rework/replacement activity during the initial production of a new configuration is proportional to the integrity levels of initially released datasets. The left side of the attached "V" diagram represents the dataset release cycle. The right side of the "V" represents the build cycle.

The cost of datasets ($200,000) plus the cost of producing the physical items ($100,000) would total $300,000 if 100% conformance was achieved during the first build cycle. However, this was not the case. The first build cycle resulted in physical item rework volume and costs as noted on the right side. Required dataset changes and costs are noted on the left side.

Additional information:

10% of the integrated system results must be reworked.
10% of modules/assemblies must be reworked.
10% of all components/parts must be reworked.
10% of the binary code/raw material must be reworked.
20% of all datasets must be corrected to resolve the nonconformances detected during manufacture of the first unit.
The cost of reworking physical items is double the initial cost.
The cost of correcting a dataset is double the cost of initial creation.

Questions

Calculate the extra cost required to correct the datasets.
Calculate the extra cost required to rework the physical items.
Calculate the cost of the first unit including the initial datasets and build costs, and all rework costs and dataset/requirements correction costs.
If the corrected datasets from the first build cycle were used to build the second unit, what would be the expected cost of the second unit?
Calculate the cost of the second unit if rework costs and dataset and requirement correction costs are the same as experienced with the first unit?
If the planned sales price of each unit is $250K, what will the profit or loss be for the first two units based on your answers to questions 3) and 5)?

Cost to Initally Creste and Release Drtacts $200,000 Coct of Inithal Producton wh No Rowork $100,000 System Application Integrated 10% of costs