An industrial engineer has designed two alternative methods for accomplishing a production job. Both methods involve the acquisition of the same working place and other capital equipment to be used for this job only. Method A calls for a crew consisting of three men each costing Php30/hr. This method will result in the production of 10 units per hour of which two will be reject. Method B calls for a crew of two men each costing Php35/hr and should result in the production of eight units per hour of which one will be reject. The cost of the direct material lost in each reject is Php20. If a certain total number of units is to be produced find which method is economical?
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- A business company has the following capacity per month based on the following: 30 working days per month; 1 shift operation at 8 hours per shift; 30 minutes break per shift per employee ABC company produces bicycles and has the following Capacities per process. Frame Welding: 60 bikes per hour per machine Painting: 20 bikes per hour per worker Assembly: 50 bikes per hour per worker Inspection: 100 bikes per hour per worker What can be observed from the system if the demand for the month is 5,000 bikes?Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?A coal-fired Power Plant with a 3000 kW rated capacity costs Php 15000 per kW installed. Annual operating cost is Php 12000000, annual maintenance cost is Php 8000000, annual depreciation is Php 15000000, interest on investment per year is 8%, and cost of coal is Php 800 per ton. If one pound of coal is needed to generate 1 kW-hr, find the total annual cost to operate the plant. The plant capacity factor is 50 %.a. Php 46450000b. Php 43380000c. Php 40280000d. Php 42320000
- A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…A company offers ID theft protection using leads obtained from client banks. Three employeeswork 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employeeidentifies an average of 3,000 potential leads a week from a list of 5,000. An average of 4 percentactually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week,and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation infees generated per dollar of input.A young mechanical engineer devised two different approaches to completing aproduction task. Both methods entail the purchase of the same working space as well asother capital equipment that will only be employed for this operation.A crew of three guys costing P30.00 per hour is required for Method A. This approachwill produce 10 units per hour, two of which will be rejects. Method B requires aworkforce of two workers, each of whom costs P35.00 per hour, to produce eight unitsper hour, one of which will be rejected. Each reject costs P20.00 because direct materialis lost. If a certain total number of units is to be produced, find which method iseconomical. DO NOT USE EXCEL, SOLVE USING FORMULA
- Consider a law firm with 15 lawyers and 3 paralegals. The firm is struggling to keep up with the high demand for its services, particularly during the busy litigation seasons. It has been observed that the lawyers spend a significant amount of their time on administrative tasks that could potentially be handled by paralegals. After a careful study of the work distribution within the firm, it was determined that 35% of the activities carried out by the lawyers are administrative in nature. Given that each lawyer works 50 hours a week, please determine: (a) How many additional paralegals should the firm hire to handle the administrative tasks currently performed by the lawyers? (b) If the lawyers' time spent on administrative tasks is redirected to billable legal work, by what percentage could the firm potentially increase its billable hours?Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
- Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy.An operation process consisting of 6 operations has the following waste detected in each of them. Determine the production volume that should be considered to cover the final volume of 5,000 per month. Calculate:1.- Quantity of production volume to be produced considering its SCRAP 2.- Quantity of production volume to be made per work shift, considering that the company works 20 days of the month with 3 shifts per day. 3.- Amount of monthly production volume that enter the operation 4. OP % SCRAP 1 .05% 2 .03% 3 .01% 4 .006% 5 .1% 6 .12%In a job shop, effective capacity is only 43 percent of design capacity, and actual output is 71 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity?a. The Design Capacity needed to achieve the required actual job outputs = (round to whole number)b. The Effective Capacity needed to achieve the required actual job outputs = (round to whole number)