The TEMKO Company encountered the problem of defects in some of its purchased tractor short-block castings.The short-block castings are used to build the R-208 tractor engines. TEMKO installs the heads,manifold,carburetor,and other enging parts which consists of approximately 13% of the short block casting purchase price. When the defects are discovered,the short blocks have to be disassembled and repaired.It takes approximately eight hours per repair.Even with this process,almost 4 percent of the incoming short blocks ended up as scrap.In other words,approximately 10 out every 100 units were repaired and 40 percent of the repaired short blocks were scrapped.Each short-block casting cost between $1,500 and $1,700 depending on the supplier.There was also a cost of downtime associated with interruptions on the shop floor.
The TEMKO Company encountered the problem of defects in some of its purchased tractor short-block castings.The short-block castings are used to build the R-208 tractor engines. TEMKO installs the heads,manifold,carburetor,and other enging parts which consists of approximately 13% of the short block casting purchase price. When the defects are discovered,the short blocks have to be disassembled and repaired.It takes approximately eight hours per repair.Even with this process,almost 4 percent of the incoming short blocks ended up as scrap.In other words,approximately 10 out every 100 units were repaired and 40 percent of the repaired short blocks were scrapped.Each short-block casting cost between $1,500 and $1,700 depending on the supplier.There was also a cost of downtime associated with interruptions on the shop floor.
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