Op Man Final Review Problems

# Problem 7 8 a book publis her has fix ed c os ts of

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Unformatted text preview: the new break ­ev en point be higher or lower? Higher c. If the v ariable c os t per unit dec reas ed, would the new break ­ev en point be higher or lower? Lower Worksheet Problem 7­8 Learning Objective: 07­02 Explain how manufacturing processes are organized. Problem 7-8 A book publis her has fix ed c os ts of \$340,000 and v ariable c os ts per book of \$10.00. The book s ells for \$22.00 per c opy . a. How many book s mus t be s old to break ev en? (Roundup your answer to the next whole num ber.) Book s to be s old 28,334 ± 1 b. If the fix ed c os t inc reas ed, would the new break ­ev en point be higher or lower? Higher c. If the v ariable c os t per unit dec reas ed, would the new break ­ev en point be higher or lower? Lower Explanation: a. The break ev en point is where total c os t equals total rev enue. Total c os ts inc lude the fix ed c os t (FC) plus the v ariable c os t (VC) times the number of book s s old (Q). Total rev enue equals the s elling pric e (SP) times the number of book s s old (Q). Solv e for the v alue of Q that s atis fies the following: FC + (VC × Q) = SP × Q, whic h is equiv alent to: Q = FC/(SP – VC). b. Inc reas ing the fix ed c os t will inc reas e the total c os t for any lev el of produc tion/s ales . That will require a higher lev el of rev enue to offs et the inc reas ed total c os ts . c. Dec reas ing the unit v ariable c os t will dec reas e the total c os t for any lev el of produc tion/s ales . As a res ult, les s rev enue will be required to offs et the total c os ts . http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 12/29 1/29/2014 10. Assignme nt Pr int Vie w awar d: 1.42 out of 1.42 points Problem 12-6 A manager s tates that his proc es s is really work ing well. Out of 1,500 parts , 1,480 were produc ed free of a partic ular defec t and pas s ed ins pec tion. Bas ed upon Six ­Sigma theory , how would y ou rate this performanc e, other things being equal? (Round your answer to the nearest whole num ber.) Defec ts per million opportunities 13,333 parts Worksheet Problem 12­6 Learning Objective: 12­02 Understand the Six Sigma approach to improving quality and productivity. Problem 12-6 A manager s tates that his proc es s is really work ing well. Out of 1,500 parts , 1,480 were produc ed free of a partic ular defec t and pas s ed ins pec tion. Bas ed upon Six ­Sigma theory , how would y ou rate this performanc e, other things being equal? (Round your answer to the nearest whole num ber.) Defec ts per million opportunities 13,333 ± .1% parts Explanation: He’s not doing s o great. He has 1,500 – 1,480 = 20 defec tiv es out of 1,500 opportunities . DPMO = (20/1,500) × 1,000,000 = 13,333. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 13/29 1/29/2014 11. Assignme nt Pr int Vie w awar d: 1.42 out of 1.42 points Problem 12-8 Below is a table of data c ollec ted ov er a s ix ­month period in a loc al groc ery s tore. Conduc t a Pareto analy s is of the data and determine the perc entage of total c omplaints repres ented by the two mos t c ommon c ategories . (Round your answer to 1 decim al place.) All Other Chec k er General Serv ic e Lev el Polic y /Proc edures Pric e Mark ing Produc t Quality Produc t Reques t Chec k out Queue Stoc k Condition 97 189 104 137 107 80 36 105 188 193 Perc entage of total c omplaints 30.9 % Worksheet Problem 12­8 Learning Objective: 12­02 Understand the Six Sigma approach to improving quality and productivity. Problem 12-8 Below is a table of data c ollec ted ov er a s ix ­month period in a loc al groc ery s tore. Conduc t a Pareto analy s is of the data and determine the perc entage of total c omplaints repres ented by the two mos t c ommon c ategories . (Round your answer to 1 decim al place.) All Other Chec k er General Serv ic e Lev el Polic y /Proc edures Pric e Mark ing Produc t Quality Produc t Reques t Chec k out Queue Stoc k Condition Perc entage of total c omplaints 97 189 104 137 107 80 36 105 188 193 30.9 ± .1 % Explanation: The two mos t c ommon c omplaints are Stoc k Condition with 193 c omplaints , and Chec k er with 189 c omplaints . There are a total of 1,236 c omplaints , s o the top two c omplaint c ategories ac c ount for ((193 + 189)/1,236) × 100 = 30.9% of the total c omplaints . 12. awar d: 1.42 out of 1.42 points http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 14/29 1/29/2014 Assignme nt Pr int Vie w Problem 13-5 Des ign s pec ific at...
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