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English conversation 2; --Could you do me a favour to correct two parts, please,thank you C: thanks, that’s clear. But till now, is every step run smoothly? Z: not exactly. C: Why? What's going on? Z: In fact, we usually find there are many different types of nonconformities or defects can occur due to encounter frequently process inconsistencies. Please look at this fish bone diagram C: OMG! It seems like the quality performance of our products is very poor. Z: the results showed that the main quality problem caused by operating inappropriate processing with improper equipment. C: Well, How can I explain, the point is that we have a new strategy to implement the cost-cutting program while investing in new technologies to cater to the new market trends. Z: well, if we want to achieve our new goals, we should ensure the safety and high quality of products by improving the existing processes... C: What do you mean exactly? Z: I've been thinking about a good programs of product simplification, product standardization, and product specialization. C: Interesting. But what are they? Z: Well, product simplification allows us to remove unnecessary products and variations, as well as reducing the variety of parts; product design can often be simplified; Standardization allows parts to be interchangeable; another aspect of standardization is the way parts fit together. If the designs of assemblies are standardized, so various models or products are assembled in the same way, and then the mass production is possible for the new product. On the other hand, specialization is a concentration of effort in a particular occupation, for example, we may produce a limited range of similar products, this lead to process and labor specialization, which increases productivity and decreases costs. C: well, it might be revolutionary for us.

Corrections · 3

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C: thanks, that’s clear. But till now, is every step running smoothly?
Z: not exactly.
C: Why? What's going on?
Z: In fact, we usually find there are many different types of nonconformities or defects that can occur due to frequent process inconsistencies.
Please look at this fish bone diagram
C: OMG! It seems like the quality performance of our products is very poor.
Z: The results showed that the main quality problem is caused by an inappropriate processing with improper equipment.
C: Well, How can I explain, the point is that we have a new strategy to implement the cost-cutting program while investing in new technologies to cater to the new market trends.
Z: well, if we want to achieve our new goals, we should ensure safety and high quality of products by improving the existing processes...
C: What do you mean exactly?
Z: I've been thinking about a good program of product simplification, product standardization, and product specialization.
C: Interesting. But what are they?
Z: Well, product simplification allows us to remove unnecessary products and variations, as well as reducing the variety of parts; product design can often be simplified;
Standardization allows parts to be interchangeable; another aspect of standardization is also the way the parts fit together. If the designs of assemblies are standardized, various models or products are assembled in the same way, and then the mass production is possible for the new product.
On the other hand, specialization is a concentration of effort in a particular occupation. For example, we may produce a limited range of similar products, this leads to process and labor specialization, which increases productivity and, in contrary, decreases the costs.
C: well, it might be revolutionary for us.
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Z: definitely. C: Do you have a budget about this program? Z: Taking into account our profitability, it is probable that we have a choice of two different methods for making new dolls. C: delight to listen. Z: Method A has a fixed cost of $2 000 for tooling and a variable cost of $3 per unit. On the other hand, considering investing a piece of special purpose machinery to perform specific operations on one work piece. It costs about $20 000 and the variable costs are $1 per piece (method B); C: I like the sound of that. How does it work? Z: well, look at this table; we can see that initially, the total cost and unit cost of method A are less than method B. the total cost for method A increases faster until, at some quantity between 8000 and 10,000 units, the total cost for method B becomes less than for method A. However, the unit cost for method B decreases at a faster rate until, at some quantity between 8000 and 10,000 units, they are equal. C: Yes, I see,you’ve picked my interest. How would these work in our process? Z: that means we should select an adequate process depending on the quantity to produce, called the cost equalization point. In the ohter words,If the volume is less than the CEP, the method with the lower fixed cost will cost less; On the contrary, if the volume is greater than the CEP, the method with the greater fixed cost will cost less. C:Well, I’m glad you’ve brought this to my attention Z: Thank you, I'm happy to hear that. C: By the way, are you free after tomorrow? I would like to arrange a meeting ASAP with the other departments concerning your proposals; I need you to be there to present more details about the new product process to them. Then we make a decision together. Z: I'd love to.it suits for me after tomorrow. C: Thank you, see you Zoe Z: goodbye Cherry.

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