A Machine Produces an Average of 500 Parts Per Day

question 60

Essay

A machine produces an average of 500 parts per day with a standard deviation of 10 parts.This is a normally distributed variable.The percent of defective parts ranges from 8-12%.Parts which need minor repair comprise 75% of the defective parts and cost $5 to repair.The rest of the defective parts cost $20 to repair.What formulas should go in cells B8:B15 to compute the daily cost of defective parts?
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { A } & B & \mathrm{C} & \mathrm{D} & \text { E } & F \\\hline 1 & \text { Initial Conditions: } & & & & & \\\hline 2 & \text { Number of Parts: } & \text { Average } & 500 & \text { Stcd dev } & 10 & \text { Normal } \\\hline 3 & \% \text { Defective } & \text { Lo } & 8 \% & \mathrm{Hi} & 12 \% & \text { Cont. Uniform } \\\hline 4 & \% \text { Minor Defects } & & 75 \% & & & \text { Constant } \\\hline 5 & \text { Cost of Minor Defect } & & \$ 5 & & & \text { Constant } \\\hline 6 & \text { Cost of Major Defect } & & \$ 20 & & & \text { Constant } \\\hline 7 & & & & & & \\\hline 8 & \text { UnitsProduced } & 500 & & & & \\\hline 9 & \% \text { Defective } & 8.2 \% & & & & \\\hline 10 & \text { Total \# Defective } & 41 & & & & \\\hline 11 & \text { \#WthMinor Defects } & 31 & & & & \\\hline 12 & \text { Cost of Minor Defects } & \$ 155 & & & & \\\hline 13 & \text { \# With Major Defects } & 10 & & & & \\\hline 14 & \text { Cost of Major Defects } & \$ 200 & & & & \\\hline 15 & \text { Total Cost } & \$ 355 & & & & \\\hline\end{array}$

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making.

Mindless Processing

Describes cognitive activities that occur without conscious awareness or effort, often in response to familiar stimuli.

Automatic Pilot

A mode of operation where tasks are performed unconsciously or without active thought, often used metaphorically to describe habitual or rote behavior.

Mishaps

Unfortunate accidents or bad luck incidents that result in damage or injury.