1.
The ABC Company has a large order for special uniforms to be used in an urgent operation. Working the normal two shifts of 40 hours each per week, the ABC production process usually produces 2, 500 uniforms per week at a standard cost of $120 each. Seventy employers work the first shift and 30 the second. The contract price is $200 per uniform. Because of the urgent need, ABC is authorized to sue around-the-clock production, six days per week. When each of the two shifts work 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.
- Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
- Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
Did weekly profits increase, decrease, or remain the same?
2.
At ZYZ Company, a custom manufacturer of printed circuit boards, the finished boards are subjected to a final inspection prior to shipment to its customers. As XYZ’s quality assurance manager, you are responsible for making a presentation to management on quality problems at the beginning of each month. Your assistant has analyzed the reject memos for all the circuit boards that were rejected during the past month. He has given you a summary statement listing the reference number of the circuit board and the reason for rejection from one of the following categories:
A= Poor electrolyte coverage
B=Improper lamination
C= Low copper plating
D= Plating separation
E= Improper etching
For 50 circuit boards that had been rejected last month, the summary statement showed the following:
C B C C D E C C B A D A C C C B C A C D C A C C B
A C A C B C C A C A A C C D A C C C E C C A B A C
· Prepare a tally sheet (or checklist) of the different reasons for rejection.
· Develop a Pareto chart to identify the more significant types of rejection.
Examine the causes of the most significant type of defect, using a cause- and-effect diagram.
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