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Question
Joe's Manufacturing is considering bidding on a small order for 5 units. Based on similar products that they have made in the past, they believe that the first unit will take 500 labor hours. They also believe that there will be an 80% learning rate. How many hours of labor should Joe include for his bid?
Answer
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Which of the following is true regarding the average outgoing quality level?A) An AOQ value of 1 is ideal, because all defects have been removed.B) AOQ is always greater than AQL but less than LTPD.C) AOQ rises (worsens) following inspection of failed lots.D) AOQ is very low (very good) for extremely poor quality lots.E) None of the above is true.
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