The Quality of a Device Should Be Examined in the Inspection

question 11

Essay

The quality of a device should be examined in the inspection department sequentially in three steps before it is sent to packaging department. The probability distributions for the time required to complete each of the activities are as follows:

a. Construct a spreadsheet simulation model to estimate the average time spent in inspection department and the standard deviation of the time spent in inspection department.
b. What is the estimated probability that the inspection will be completed in 32 minutes or less?

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Definitions:

Overhead Costs

Indirect expenses related to the operation of a business that are not directly assignable to a specific product or service.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of a product or the provision of a service.

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or job orders, based on the hours a machine is operated.

Batch Size

The quantity of items or units produced in a single manufacturing run or production cycle, which can significantly impact production efficiency and cost.