( TCO 11 ) Which of the following is NOT one of the steps in managingbottlenecks under the theory of constraints ?
4 . Question : ( TCO 11 ) Scrap is an example of 5 . Question :
( TCO 11 ) Regal Products has a budget of $ 900,000 in 20X6 for prevention costs . If it decides to automate a portion of its prevention activities , it will save $ 60,000 in variable costs . The new method will require $ 18,000 in training costs and $ 120,000 in annual equipment costs . Management iswilling to adjust the budget for an amount up to the cost of the new equipment . The budgeted production level is 150,000 units . Appraisal costs for the year are budgeted at $ 600,000 . The new prevention procedures will save appraisal costs of $ 30,000 . Internal failure costs average $ 15 per failed unit of finished goods . The internal failure rate is expected to be 3 % of all completed items . The proposed changes will cut the internal failure rate by one-third . Internal failure units are destroyed . External failure costs average $ 54 per failed unit . The company ' s average external failuresaverage 3 % of units sold . The new proposal will reduce this rate by 50 %. Assume all units produced are sold and there are no ending inventories . How much will appraisal costs change assuming the new prevention methods reduce material failures by 40 % in the appraisal phase ?
6 . Question :
( TCO 12 ) Which of the following is NOT a major feature of a just-intimeproduction system ?
7 . Question : ( TCO 12 ) Quality costs include 8 . Question :