IE 1055 2025 Homework 2 Due Jan 18 2017 1 In a just in time and total quality management environment defects are often reduced or eliminated Describe at least five strategies to reduce or eliminate defects and explain the impact of reducing defects on facilities design 15 pts Answer 20 pts 1 2 3 4 5 Employee certification Better process operation documentation with emphasis on quality concerns Mistake proofing poka yokes Preventive predictive maintenance practices Autonomous maintenance cleaning lubrication minor adjustments Scrap consumes resources and requires additional space Eliminating scrap by reducing defects reduces space and flow requirements and impacts activity interrelationships 2 You are a strategic planner for Ford Motor Company Your current assignment is to examine whether or not the hood and trunk latches should be made in house instead of procuring them from outside vendors The latches are basically a small metal assembly consisting of several stamped sheet metal parts and some additional components springs bolts etc 15 pts Discuss some of the reasons that it would be a good idea to make the latches inhouse Discuss some of the reasons that it would not be a good idea to make the latches in house What are some of the key questions that would have to be answered before a decision could be made Answer 15 pts Discuss some of the reasons that it would be a good idea to make the latches inhouse o The company has the capability to produce the latches with reasonable quality and costs o It is cheaper to produce the latches in house o The company has the required equipment to produce the latches o The latches are required in high volume and demand is stable for the long term o Etc Discuss some of the reasons that it would not be a good idea to make the latches in house o The company is unable to produce the latches o It is cheaper to buy the latches o The latches are only needed over the short term THIS SOLUTION MAY ONLY BE USED FOR IE 1055 2025 SPRING 2017 o Demand for the latches is low o Latches are probably not an important strategic asset in vehicle design o Etc What are some of the key questions that would have to be answered before a decision could be made o Can the latches be purchased o Can we produce the latches o Is it cheaper for us to produce than to buy o Is the capital available to allow us to produce the latches THIS SOLUTION MAY ONLY BE USED FOR IE 1055 2025 SPRING 2017 3 You work for SteelPro a fabrication company that specializes in machining specialty alloys One of your best customers is Bombardier Transportation Bombardier has asked you to fill an order for 20 of their part 107 Bombardier will pay you 500 for each good part 107 but will only accept exactly 20 good ones no more no less The raw materials required to make a 107 cost 150 Unfortunately you have yield loss issues related to manufacturing the 107 Assume that the 107s are produced independently of each other with the probability of an individual 107 being good being equal to 0 85 Defective 107s can be scrapped for 50 There is also the technical challenge that the way you process the 107s is that you machine the entire batch whatever batch size you choose and then you heat treat and further process them and only after the heat treating and further processing do the defects become detectable Thus you must determine the batch size to run prior to knowing what your precise yield will be What is the minimum number of 107s you need to schedule to have a 0 90 probability that you get 20 good 107s 20 pts Answer 25 pts Since the parts are produced independent of each other and the probability of an individual casting being good is equal to 0 85 the number of good parts follows a binomial distribution with parameter 0 85 We need the probability that we get 20 good parts to be 0 90 thus it is p there are at least 20 good parts among X parts X X 0 85 20 0 15 X 20 0 85 210 15 X 21 20 21 X X X 1 0 85 0 0 15 X 0 0 8510 15 X 1 0 8519 0 15 X 19 0 1 19 1 BINOMDIST 19 X 0 85 TRUE 0 90 We use the BINOMDIST function in Excel to get the following table X 20 21 22 23 24 25 26 27 28 29 BINOMDIST 19 X 0 85 TRUE 0 961 0 845 0 662 0 460 0 287 0 162 0 083 0 040 0 018 0 007 1 BINOMDIST 19 X 0 85 TRUE 0 039 0 155 0 338 0 540 0 713 0 838 0 917 0 960 0 982 0 993 THIS SOLUTION MAY ONLY BE USED FOR IE 1055 2025 SPRING 2017 30 31 32 0 003 0 001 0 0004 0 997 0 999 0 9996 This function BINOMDIST 19 X 0 85 TRUE will let me know the probability that there are 19 successes or less in X trials where X is the left column in the table if the probability of success in each trial is 0 85 The idea is that I am finding the probability that 19 or fewer are good One minus that is the probability that at least 20 are good Therefore to have a 90 chance of having 20 good I need 26 parts Alternative way Since the function BINOMDIST in excel is the probability that there are n successes or less in X trials we can think of the bad parts as successes with probability 0 15 So we need the bad parts to be X 20 or less Then we use BINOMDIST X 20 X 0 1 TRUE to reach the same conclusion as above X 20 21 22 23 24 25 26 27 28 29 30 31 32 BINOMDIST X 20 X 0 15 TRUE 0 039 0 155 0 338 0 540 0 713 0 838 0 917 0 960 0 982 0 993 0 997 0 999 0 9996 THIS SOLUTION MAY ONLY BE USED FOR IE 1055 2025 SPRING 2017