a-1. If the inspector position is eliminated, what will the hourly cost of defects be? Note: Round your answer to 2 decimal places. a-2. Should this inspection position be eliminated based on costs alone? b. What is the cost to inspect each unit? Note: Round your answer to 2 decimal places. c. Is there benefit (or loss) from the current inspection process? How much? Note: Input all amounts as positive values. Round your answers to 2 decimal places.
Q30 please help me with all of these parts of this question!
A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on the average of 0.03. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 51 units per hour.
The hourly rate including
a-1. If the inspector position is eliminated, what will the hourly cost of defects be?
Note: Round your answer to 2 decimal places.
a-2. Should this inspection position be eliminated based on costs alone?
b. What is the cost to inspect each unit?
Note: Round your answer to 2 decimal places.
c. Is there benefit (or loss) from the current inspection process? How much?
Note: Input all amounts as positive values. Round your answers to 2 decimal places.
To calculate the financial losses caused by product defects, businesses often keep track of the quantity of faulty items they manufacture. Tracking this statistic, known as the defect rate, enables businesses to assess the general quality of each product and the manufacturing process. Knowing this measurement enables you to see flaws earlier and perhaps even suggest remedies. The defect rate is a measurement of the proportion of production units that are flawed or useless relative to a certain number of units. Businesses use this assessment to assess the quality of their products and how they affect their bottom line. Although lower rates are desired, no industry has a set acceptable fault rate. So, businesses must choose their goal defect rate.
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