1 For customer satisfaction, computer software must not only be free of errors or "bugs" but also have the necessary product features.

For each 100 units of product manufactured, a certain process yields 85 conforming units, five that must be scrapped, and 10 that must be reprocessed. Each unit scrapped results in a $50 loss; each reprocessed unit requires an extra half hour of processing time. The resource time of producing the original 100 units is 20 hours.

(a)Calculate the scrap cost,

reprocessing time, and productivity per hour. Productivity should be calculated

in terms of conforming units per hour of resource input.

(b)A quality improvement program

has recently been successfully introduced. For each 100 units manufactured, the

process now yields 95 conforming units, one to be scrapped, and four for

reprocessing. Repeat the calculations of paragraph (a). What are the

quantitative benefits of the quality effort to costs, to delivery schedules,

and to productivity?