SCM 300 – ONLINE LAB EXERCISE #6Metrics and Quality ExerciseLab Exercise (25 Points)SCM 300RELIABILITYA certain company produces

SCM 300 – ONLINE LAB EXERCISE #6Metrics and Quality ExerciseLab Exercise (25 Points)SCM 300RELIABILITYA certain company produces 24,000 tables per year in a three-step process.The three steps inthe process employ machines with the reliabilities listed here:Step A – 0.989Step B – 0.977Step C – 0.9151.(2 Points)What is the reliability of the present process?Provide reliability to three digits.2.(2 Points)How many defectsdoes this process presently produce annually?Round up to geta whole number.3.(2 Points)If the cost per defective unit is $28.50, what is the annual cost of defects to thecompany at this time?4.(3 Points)The company can choose to buy a back-up machine for Step C for an additional$30,000.The back up would also have a reliability of 0.915, just like the one that is presentlyused.If they decide to get this back-up machine, what will the new reliability of thesystembe?Assume that once a machine malfunctions, the process continues to produce product, acceptableand defective.Use THREE decimal places in you calculations.5.(3 Points)With the back up in place, how many defects will the process produce annuallygiven the same demand rate?Round up to get a whole number.6.(3 Points)How much do they stand to save this year if the cost of the back-up machine isincluded in your calculation?Remember to include the cost of the back-up into your calculations.

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