Once the raw materials are collected, a single flow unit manufacturing process comprises three sequential steps: β
Step 1 consumes large amounts of an expensive paint
Step 2 is the bottleneck.
Step 3 has a large amount of idle time
There exists a 20 percent chance at each step to produce a defect, and raw materials have a 20 percent chance to have a defect. However, defects are not immediately observable. A defect reduces the value of the final product to zero; that is, a product with just one defect has no value and must be discarded. Consider the following statements. The process presently is capacity constrained. Which of the following statements best captures good advice on where to locate a single inspection point?
a. The only inspection point should be before step 1.
b. If the focus is on cost savings of the expensive paint, the inspection should occur before step 1. If the focus is on flow rate, the inspection point should be before step 2.
c. If the focus is on cost savings of the expensive paint, the inspection should occur before step 2. If the focus is on flow rate, the inspection point should be before step 3.
d. The only inspection point should be before step 3.
Answers: 1
Business, 21.06.2019 19:40, nessabear9472
Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no
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Business, 22.06.2019 20:00, javonteoshamccaliste
Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation
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