Workshop 9: Statistical Process Control The tools practiced in this workshop are: Statistical Process Control Situation: The City of Houston invites two companies to bid for a contract to provide 100 highway| guardrails. The City will provide all necessary documentation to the successful bidder. Both companies understand the requirements of the contract and both are equipped and have the know how to manufacture the guardrails. The Acme Company, with no SPC experience, develops a conservative proposal, accounting for 20% rework in its manufacturing labor costs, padding materials costs by 15% in anticipation of scrappage, and allowing for inspection sufficient to identify most of the defects- calculated at 22% of the basic manufacturing labor. The Zeta Company uses SPC in its manufacturing processes bids rework (5%) and scrap at much lower rates and includes only enough inspection labor to audit processes (2%) and meet the City's own minimum inspection criteria. 1. Complete the following chart for Rework Labor, Inspection Labor and Totals for both companies that compares the bids based on the information in the scenario above. (See the example on page 332 in the Textbook.) Type directly in the table. Do not insert an Excel spreadsheet. Acme Zeta Manufacturing Labor $500,000 $500,000 Rework Labor Inspection Labor Materials 300,000 250,000 Totals 2. What is the difference in the total bids for the two companies? 2. What is the difference in the total bids for the two companies? 3. Which company do you think will win the bid and why? 4. How would you rate the competitiveness of the two companies? 5. If you work for a company that does not employ SPC, how could SPC help the firm