Question 1
What is the distinction between normal and abnormal spoilage?Question 2
A company produces 11,000 units of which 600 are spoiled units because the process, even though carefully and efficiently executed is unable to produce good units 100% of the time. Another 80 units are spoiled because machines broke down and there also were operator errors. What is the normal spoilage rate (round to two decimal places)Answer 1
Normal spoilage is inherent in a particular production process and arises when the process is done in an efficient manner. Abnormal spoilage, on the other hand, is not inherent in a particular production process and would not arise under efficient operating conditions. Abnormal spoilage is usually regarded as avoidable and controllable.Answer 2
5.81%