A company makes parts that cost $35.00 in material and labor. 92% of the parts are produced defect free and are sold for full price at $110 each. 2% of the parts made must be scrapped. Scrap parts are sold for $8.00 each. The remaining 6% of the parts made must be reworked at a cost of $12.00 each. After rework 1% still must be scrapped and the other 5% is sold at a discounted price of $90 each. a. Draw the tree diagram showing the quality cost situation. b. Determine the earnings per part. c. Determine the cost of poor quality (COPQ). d. Determine the earnings per part and COPQ if the rework operation was shut down and the parts that required reworking were just sold for scrap instead.

Using the sample data given in Table 2-20, it is assumed that all the 10 styles are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. A recommendation is made about how many units to produce each style given in the initial production. Style Price Laura Carolyn  Greg Wendy Tom  Wally Average  forcast  Standard Deiation  2x standard deviation  First-period production              1   µ   σ  MAX (0, µ - kσ)  Gail $110.00 900 1000 900 1300 800 1200 1017 194 388 605 Isis $99.00 800 700 1000 1600 950 1200 1042 323 646 357 Entice $80.00 1200 1600 1500 1550 950 1350 1358 248 496 832 Assult $90.00 2500 1900 2700 2450 2800 2800 2525 340 680 1804 Teri $123.00 800 900 1000 1100 950 1850 1100 381 762 292 Electra $173.00 2500 1900 1900 2800 1800 2000 2150 404 807 1294 Stephanie $133.00 600 900 1000 1100 950 2125 1113 524 1048 1 Seduced $73.00 4600 4300 3900 4000 4300 3000 4017 556 1113 2836 Anita $93.00 4400 3300 3500 1500 4200…

This raises the question of whether or not engineers have an obligation to create code that can be maintained even if the firm itself does not.

Final goods are within the production boundaries True/False

Product design engineer: individual has the ultimate responsibility for the development of the product and represents the major link between the product and the customer.  Technologist engineer: aids the design engineer in developing the test apparatus, performing experiments, and reducing data in the development of the product.  True or False?

Your startup company is considering manufacturing 5,000 units annually of a simple but important component for an aerospace contractor. With your existing resources, you priced the startup tooling to cost $1,000, and the cost to produce each unit will be $1.50. Alternatively, you can purchase an automated system for $15,000 which will reduce the cost per unit to $0.50. Neglecting interest, the breakeven point (years) is most nearly: 2.8 3.6 15.0 never