Figure 6-3 Typical Payment Calculation when Planned Sampling is Used

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PLANNED
SAMPLING
WORK REQUIREMENTS
PAYMENT CALCULATION
QUALITY
RESPONSE CLASSIF-
COST
ACCTNG
WORK
TIME
ICATION
a.
\$600
\$7200
\$600
price for work requirement
\$3,600
b.
600
600
600
600
Population
c.
Price per service (a/b)
\$1
\$1
\$6
\$12
50
d.
50
50
50
No. of -ices sampled
e.
1
1
No. of services rejected
3
2
2
f.
2
2
3
Defects outside sample
5
Total observed defects
4
g.
4
3
0.50%
0.66%
0.83%
0.66%
h.
Defect rate (g/b)*
0
4
0
Services reworked by contr
i.
N/A
0
3
4
j.
Services reworked by Govt.
N/A
or Others
0
0
5
0
k. Net no. services to deduct
at scheduled price (g-i-j)
\$30.00
\$
0
\$
0
\$
0
l.  Net services to deduct
at scheduled price (c x k)
m. Deduct for Govt. rework
\$0.00
\$60.00
\$0.00
Actual cost**
N/A
\$4.00
\$0.00
or scheduled price (c x j)
\$0.00
N/A
\$3.00
\$0.00
\$0.40 \$0.00
n.  IDs on contractor rework
[10% x c x (g-j)]
\$12.00
\$0.80
\$0.00
\$0.00
o. IDs of Govt rework
(20% x m)
\$0.00
\$0.00
\$0.00 \$0.00
\$599.60 \$7,128.00
\$3,567.00 \$595.20
q. Total payment
(a-l-m-n-o+p)
Total payment for routine service calls = \$ 11,889.80
*The defect rate is calculated as a percentage of the total number
of services.  Calculating the defect rate by dividing the number of
defects in the sample by the sample size is erroneous and contrary
to NAVFACENGCOM policy.
** Actual costs are the amounts paid to Government personnel (wages,
retirement, and fringe benefits) plus materials or the actual costs
of other means by which the work is accomplished.
FIGURE 6-3 TYPICAL PAYMENT CALCULATION WHEN PLANNED
SAMPLING IS USED
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