subject
Business, 14.10.2020 01:01 Kigarya

A production line engineer, Shane, checks every chip for quality control (QC). His workers find errors approximately every 150 chips. Either the defective chips must be sent back for repair or they must be axed (thrown away). The manager, Rob, has mandated that workers must axe all defective chips. Rob walks over to Shane's line and declares, "Why some lines sink more dollars into a chip that's failed, I don't understand. We only make 25 cents off of each chip anyway! Spending an additional $2.00 per chip will only be more money down the drain. Shane, in our line of work we can't afford to flush money down the toilet." The following afternoon, Rob calls a meeting in his office. Rob informs Shane, that Shane's line is axing too many chips. "One chip every hundred and fifty is unacceptable! This is becoming a substantial cost to the company. I believe that it would be more beneficial to allow defective chips to go out the door." Shane asks, "What about the defective chips? Won't customers complain?" Rob replies, "Yeah, yeah, but that's not your problem, the company has a return department that will replace them as customers complain." Rob further estimates that allowing defective chips on the market will yield a $416,000 profit for the company
Facts:
The line produces 100,000 chips per year.
Every chip is purchased.
Chips cost about $9.00 to produce.
Chip testing costs about $4.00 per chip.
Chip repair (manpower and material) is about $2.00 per chip.
This repair cost includes re-testing.
Profit per chip is $0.25 after testing.
There are fifteen full-time employees working under Shane.
Two part-time employees work under Shane's supervision.
Shane's manager, Rob, has been with the company for about 7 years.
Shane has been working under the same manager for several years and has had relatively good relations with Rob.
Additional information regarding the Shane's line:
The engineer's line consists of the final inspection between the bond wires, which attach the chips to the prongs and spot plates (the prongs that protrude from the final product), just before the chips are encased in molding compound for final packaging. You may assume that all defects are caused by faulty bond wire attachment and not by any problem with the chip itself, because the chips were tested in the preceding phase before the bond wires were attached
Numerical and/or Design Problem(s)
1. What percent of the chips may fail if Xanthum Inc. Orders 15,000 chips from Shane's production line?
2. Do you believe this is an acceptable failure rate? From the perspective of Xanthum? From the perspective of the manufacturer? Why or why not?
3. If Shane's line produces 100,000 chips per year, how much will it cost to: 1. Test and repair each defective chip? 2.Test all chips and throw away the defective chips? 3. Not to test any chips and to replace customers chips as needed?
4. Is Rob's estimate reasonable? What about his assertion that it is cheaper to axe the chips?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 11:30, kimjp56io5
Amano s preguntes cationing to come fonds and consumer good 8. why did the u. s. government use rationing for some foods and consumer goods during world war ii?
Answers: 1
image
Business, 22.06.2019 18:00, HistoryLee
1. what is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually? $8.00 $4.08 $8.16 $4.00 2. what is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually? $24.00 $8.00 $16.64 $25.97 3. a business just took out a loan for $100,000 at 10% interest. if the business pays the loan off in three months, how much did the business pay in interest? $2,500.00 $10.00 $250.00 $10,000.00 4. what is the annual percentage yield (apy) for a deposit paying 5 percent interest with monthly compounding? 5.00% 5.12% 79.59% 0.42%
Answers: 1
image
Business, 22.06.2019 19:40, silasjob09
The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.
Answers: 3
image
Business, 22.06.2019 21:00, QueenMiah16
Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?
Answers: 3
You know the right answer?
A production line engineer, Shane, checks every chip for quality control (QC). His workers find erro...

Questions in other subjects:

Konu
Chemistry, 03.11.2020 02:30
Konu
Health, 03.11.2020 02:30