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QUESTION
SCM 300 - ONLINE LAB EXERCISE #6 Metrics and Quality Exercise Lab Exercise (25 Points) SCM 300 RELIABILITY A certain company produces 24,000 tables
QUESTIONS #1-8
- What is the reliability of the present process? Provide reliability to three digits.
- How many defects does this process presently produce annually? Round up to get a whole number.
- If the cost per defective unit is $28.50, what is the annual cost of defects to the company at this time?
- The company can choose to buy a back-up machine for Step C for an additional $30,000. The back up would also have a reliability of 0.915, just like the one that is presently used. If they decide to get this back-up machine, what will the new reliability of the system be? Assume that once a machine malfunctions, the process continues to produce product, acceptable and defective. Use THREE decimal places in you calculations.
- With the back up in place, how many defects will the process produce annually given the same demand rate? Round up to get a whole number.
- How much do they stand to save this year if the cost of the back-up machine is included in your calculation? Remember to include the cost of the back-up into your calculations.
- What is the total process velocity?
- Calculate the cash to cash cycle?