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A new production process at MakeIt Inc. has two in-line stages. The probability of defective components being produced in stage 1 is 15 percent and 10 percent in stage 2.

Assembled units that have defective components only from stage 1 OR only from stage 2 are considered repairable.

However items that have defective components from both stage 1 and stage 2 (completely defective) must be scrapped.

1. Use a probability tree diagram and calculate the probabilities that the MakeIt Inc. assembled units are:

a. defective in stage 1 and defective in stage 2 (are completely defective)

b. defective in stage 1 and are not defective in stage 2 (called Repairable I)

c. not defective in stage 1 but are defective in stage 2 (called Repairable II)

d. not defective in stage 1 and are not defective in stage 2 (completely good)

e. What is the probability of producing repairable assembled units?

2. Describe a situation in an administrative or services business where this sort of defect probability analysis may appropriately be used.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92705929

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