A production process consists of five sequential operations with defect rates of 2% ,4%, 3%, 2%, and 1%, respectively.A) How many units does the...

The production process has 5 sequential operations with
defect rates of 2%, 4%, 3%, 2% and 1% respectively.

If we
start with trying to produce x units, after the first process the number of defect free
units are x*0.98. After the second process it reduces to x*0.98*0.96. This goes on and
at the end of the production process we are left with x*0.98*0.96*0.97*0.98*0.99 =
x*0.8854 defect free units. (0.8854 is obtained after rounding off till four decimal
places)

To produce 500 defect free units, let the number of
units that we have to start with be X

X*0.8854 =
500

=> X = 500/0.8854 =
564.7

The manager should schedule the production of 565
units to be able to achieve the required number of defect free
units.

The yield loss at each step is equal to the
corresponding defect rate.

The process yield as illustrated
above is 88.54%.