BIT 3414 Final Exam QUESTIONS
WELL ANSWERED GRADED A+
machine productivity formula - ANS ✔✔output or number of products produced / machine
hours used
labor productivity formula - ANS ✔✔output or number of products produced / labor hours used
process capability formula - ANS ✔✔(# of units input into a stage) x (average % of good quality)
A production process consists of the following four stages with the average percentage of good
quality at each stage as shown:
stage 1 0.95
stage 2 0.90
stage 3 0.85
stage 4 1.00
Consider just Stage 2. There are 10,000 units available for input into Stage 2, 80% of the poor
quality units can be reworked, direct manufacturing cost is $50 per unit and the rework cost is
$10 per unit. Product cost is: - ANS ✔✔product cost formula: ((Kd)(I)+(Kr)(R)) / Y
OR
((direct manufacturing cost per unit)(units available for input)+(rework cost per unit)(reworked
units)) / yield
, ------------------------------------------------
how to calculate product cost:
1. find yield first by using productivity yield formula.
(10,000)(.90) + (10,000)(1-.90)(.80) = 9800
2. find product cost by using above formula
[($50)(10,000) + (10)(800)] / 9800 = $51.84
------------------------------------------------
how to find reworked units:
1. take units available for inputs (10,000) and multiply it by the average percentage good quality
to find good products --> (10,000)(.90) = 9000
2. the difference between units available for input and the units that you calculated as good is
used for reworked units --> 10,000 - 9000 = 1000 units available for reworking
3. calculate reworking units: (1000 units for rework)(%of units can be reworked)
= (1,000)(.80) = 800
productivity yield formula - ANS ✔✔(total input)(% good units) + (total input)(1-%good units)(%
reworked)
quality productivity ratio formula - ANS ✔✔((good-quality units) / (input)(processing costs)+
(reworked units)(rework costs)) x 100
The process that fills beer cans with Miller Lite is supposed to fill the cans with 12 ounces of
beer plus or minus one-half ounce.
WELL ANSWERED GRADED A+
machine productivity formula - ANS ✔✔output or number of products produced / machine
hours used
labor productivity formula - ANS ✔✔output or number of products produced / labor hours used
process capability formula - ANS ✔✔(# of units input into a stage) x (average % of good quality)
A production process consists of the following four stages with the average percentage of good
quality at each stage as shown:
stage 1 0.95
stage 2 0.90
stage 3 0.85
stage 4 1.00
Consider just Stage 2. There are 10,000 units available for input into Stage 2, 80% of the poor
quality units can be reworked, direct manufacturing cost is $50 per unit and the rework cost is
$10 per unit. Product cost is: - ANS ✔✔product cost formula: ((Kd)(I)+(Kr)(R)) / Y
OR
((direct manufacturing cost per unit)(units available for input)+(rework cost per unit)(reworked
units)) / yield
, ------------------------------------------------
how to calculate product cost:
1. find yield first by using productivity yield formula.
(10,000)(.90) + (10,000)(1-.90)(.80) = 9800
2. find product cost by using above formula
[($50)(10,000) + (10)(800)] / 9800 = $51.84
------------------------------------------------
how to find reworked units:
1. take units available for inputs (10,000) and multiply it by the average percentage good quality
to find good products --> (10,000)(.90) = 9000
2. the difference between units available for input and the units that you calculated as good is
used for reworked units --> 10,000 - 9000 = 1000 units available for reworking
3. calculate reworking units: (1000 units for rework)(%of units can be reworked)
= (1,000)(.80) = 800
productivity yield formula - ANS ✔✔(total input)(% good units) + (total input)(1-%good units)(%
reworked)
quality productivity ratio formula - ANS ✔✔((good-quality units) / (input)(processing costs)+
(reworked units)(rework costs)) x 100
The process that fills beer cans with Miller Lite is supposed to fill the cans with 12 ounces of
beer plus or minus one-half ounce.
