Question: Example: A component used in a copier machine. Daily rate of production = 100 part/day Direct Cost = $ 20/part Rework Cost = $4/part Case

Example: A component used in a copier machine.

Example: A component used in a copier machine. Daily rate of production = 100 part/day Direct Cost = $ 20/part Rework Cost = $4/part Case (1): 75% Conforming O/P = 25% Nonconforming [60% Reworked 40% Scrapped Case (II): The nonconformity % is dropped from 25% to 5% Determine the following for case I and II: of Conforming parts = ? # of Nonconforming parts = ? # of Reworked parts = ? of Scrapped parts = ? Total production = ? Cost of production =? Cost of Rework = ? Cost/good part =

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