To increase capacity, a project team must decide between two…

To increase capacity, a project team must decide between two weaving looms. Both looms have comparable capacity and quality levels, but different costs. The team must evaluate the costs over a five-year study period, with an MARR (an interest rate) of 8% per year. Loom 2: The Jurgens Loom will cost $9,500 now, have operating costs of $1,000 per year, and have a salvage value of $2,500 after 5 years. What is the net present worth of the cash flows for Loom 2?    [loom2] The net present worth of the cash flows for Loom 1 is −$12,470. Which loom should the team select?    [select]

A Six Sigma project team is working to reduce defects from a…

A Six Sigma project team is working to reduce defects from a manufacturing process. The root cause analysis showed a significant difference between machines at one process step. The team is in the Improve phase and evaluating several ideas. The table below summarizes scores against decision criteria for the ideas.  CRITERIA AND WEIGHT Cost CTQ Impact Ease of Implementation Customer Satisfaction IDEA 3 4 2 1 TOTAL SCORE A 4 5 5 5 (a) B 4 4 3 4 (b) C 2 2 2 2 (c) Scoring: 1 = Worse and 5 = Better What is the total score for idea A?    [sa] What is the total score for idea B?    [sb] What is the total score for idea C?    [sc] Which idea should the team pick?    [select] (enter A, B or C)