For each 100 units of product manufactured, a certain process yields 85 conforming units, five that must be scrapped, and 10 that must be reprocessed. Each unit scrapped results in a $50 loss; each reprocessed unit requires an extra half hour of processing time. The resource time of producing the original 100 units is 20 hours.(a)Calculate the scrap cost,reprocessing time, and productivity per hour. Productivity should be calculatedin terms of conforming units per hour of resource input.(b)A quality improvement programhas recently been successfully introduced. For each 100 units manufactured, theprocess now yields 95 conforming units, one to be scrapped, and four forreprocessing. Repeat the calculations of paragraph (a). What are thequantitative benefits of the quality effort to costs, to delivery schedules,and to productivity?
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