1. What is the reliability of the present process?

2. How many defects does this process presently produce annually?Round up to get a whole number.

3. If the cost per defective unit is $28.50, what is the annual cost of defects to the company at this time?

4. 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 presently used.If they decide to get this back-up machine, what will the new reliability of the system be?

5. With the back up in place, how many defects will the process produce annually given the same demand rate?

6. How much do they stand to save this year if the cost of the back-up machine is included in your calculation?