Operations Management > Research Paper > HKUST - ISOM 3730: Operations Management Simulation: Quality Analytics ISOM 3730 (All)

HKUST - ISOM 3730: Operations Management Simulation: Quality Analytics ISOM 3730

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Challenge 1 • The upper and lower control limits for the X-bar chart will be around 34.5 and 25.5, respectively • For the R chart, the lower control limit will always be zero because D3 is not... defined for a sample size of 5 • The upper control limit for the R chart will vary around about 16.5 Challenge 2 • When Challenge 2 is run without making any interventions, the total cost should be around $14,000 When equipment recalibrations and labor substitutions are made when assignable causes are detected, the total cost is reduced substantially, to around $4000. Around $3500 of that amount is in external defect costs, while the rest is in internal defect costs and the cost of making the recalibrations and labor substitutions When equipment recalibrations and labor substitutions are made when assignable causes are detected, the total cost is reduced substantially, to around $4000. Around $3500 of that amount is in external defect costs, while the rest is in internal defect costs and the cost of making the recalibrations and labor substitutions Challenge 4 • When Challenge 4 is run without making any investments in improving the quality of the process, the total cost of quality is around $41,000. • This is comprised primarily of external failure costs, with a small amount of internal failure costs and appraisal costs for the baseline sampling plan. [Show More]

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