Question: EXERCISE #2 THG Machine Sdn. Bhd. produces a small device for Perotiga AGAR 1.8EX at a processing cost of RM78 per unit The broken device

EXERCISE #2 THG Machine Sdn. Bhd. produces a

EXERCISE #2 THG Machine Sdn. Bhd. produces a small device for Perotiga AGAR 1.8EX at a processing cost of RM78 per unit The broken device can be reworked at cost of RM23 each. In a daily production, the firm produces 540 units with 85% of good-quality devices. The balance is considered defective devices. Half of these defective (50%) devices can be modified with a specified cost. The firm wants to know the results of each case: a) Examine the effects of increasing the production rate of 850 units per day, b) Reducing processing cost to RM55 and rework cost to be RM18, C Through SIX SIGMA quality improvement programs, the product yield of good-quality products is increasing to 95%, and d) The combination of B and C

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