Question: 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

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?

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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 full answer

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