The defect rate for a product has historically been about 1.6%. What are the upper and lower control chart limits for a p-chart, if you wish to use a sample size of 100 and 3-sigma limits?
What will be an ideal response?
UCLp = + 3 = 0.016 + 3 . = .0536
UCLp = - 3 = 0.016 - 3 . = -0.0216, or zero
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Bellini Robotics Corporation has developed a new robot-model EM-28-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 30,000 hours of service, has operating costs that average $1.40 per hour, and sells for $129,000. In contrast, model EM-28 has a useful life of 90,000 hours of service and its operating cost is $0.80 per hour. Bellini has not yet established a selling price for model EM-28.Required:From a value-based pricing standpoint:a. What is the reference value that Bellini should consider when pricing model EM-28?b. What is the differentiation value offered by model EM-28 relative to the competitor's offering for each 90,000 hours of service?c. What is model EM-28's economic value to the customer over its 90,000 hour
useful life?d. What range of possible prices should Bellini consider when setting a price for model EM-28? What will be an ideal response?
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