The Dulac Box plant produces wooden packing boxes to be used in the local seafood
industry. Current operations allow the company to make 500 boxes per day, in two
8-hour shifts (250 boxes per shift). The company has introduced some small changes in
equipment, and conducted appropriate job training, so that production levels have risen
to 300 boxes per shift. These changes did not require any change in the amount of
capital spending or energy use. What is the firm’s new labor productivity?
Consider a product that is ‘settled in.” Its MTBF distribution has been found to be
normal with a mean of 10,000 hours and a standard deviation of 100 hours. What is the
probability of a breakdown before 8,000 hours? Before 9,000 hours? Would you prefer
a policy of preventive maintenance, or a policy of breakdown maintenance, on this
product? Explain your choice.
What is the difference between conforming quality and target-oriented quality?