a) Explain the concept of statistical process control for operations management.

Using examples, explain how this concept can be used to reduce costs and improve customer satisfaction?

b) A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $90,000 and variable costs of $5. What is the indifference point for these processes?

Answer rating: 100% (QA)

Answer A CONCEPT OF STATISTICAL PROCESS CONTROL Introduction Statistical Process Control SPC isnt new to industry In 1924 a man at Bell Laboratories built up the control diagram and the idea that a cy... View the full answer