BU247 Lecture Notes - Lecture 7: Product Liability, Quality Engineering, Kaizen
Document Summary
There"s been many ways that have been attempted, but the issue on any assembly line is you always have one part of the facility where everything backs up. We look at different constraints and layouts to get the optimal solution. Prof says the product is the most important part. Inventory savings- have to carry that inventory cost either) Year 3: 69,500 (a base savings, but obviously as sales, etc. increase, so will savings) 200,000 x 0. 25 x 15% 7,500 (went down by 20%- don"t (30,500) He wanted a 12% increase, so the change does not only meet his requirement but rather exceeds it by. Goes right down to the people doing the job, ask them how to reduce costs whereas in the traditional method engineers set standards etc. Looking at other companies strategies and setting expenses according to that because of their desirable results. External failure costs: defect discovered by customers (most.
