Question: QUESTION 3 a) Explain the concept of statistical process control for operations management. Using examples, explain how this concept can be used to reduce costs

QUESTION 3

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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