Question: For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection. Inspection time for a plant is 1 6
For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection.
Inspection time for a plant is hours per year. The cost of inspection consists of salaries of inspectors, totaling $ Inspection also uses supplies costing $ per inspection hour. The company eliminated most defective components by eliminating lowquality suppliers. The number of production errors was reduced dramatically by installing a system of statistical process control. Further quality improvements were realized by redesigning the products, making them easier to manufacture. The net effect was to achieve a close to zerodefect state and eliminate the need for any inspection activity.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
