Part X requires operation A and operation B on the SAME MACHINE in sequence (First Operation A then operation B are performed on the same machine). Assume the company will be operating five days per week 8 hours per day. The following information is known: Operation Standard Time Efficiency Reliability Defect Rate A 3 min 95% 95% 2% В 5 min 95% 90% 5% OA = 18 Og = 1000 parts/week Operation A Operation B PA=2% Pg=5% a. In order to produce 1000 units of X in a week units X is scheduled weekly for Operation B (due to 5% scrap ratio) units X is scheduled weekly for Operation A (due to 2% scrap ratio)

There is a 4 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $9 per hour and could inspect units in the process at the current production rate of 46 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on.   Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. if the inspector is hired, what will be the inspection cost per unit? b. if an inspector is not hired, what will be the defective cost per unit? c. should an inspector be hired based on costs alone?