Problems

Asymt 83

REVIEW QUESTIONS aw CpM

pApmkom, fnteduekn 4 w
3.1 What is the cycle time in a manufacturing operation?
3.2 What is a bottleneck station?
3.3 What is production capacity?
3.4 How can plant capacity be increased or decreased in the short term?
decreased in the intermediate or long term?
.S How can plant capacity be increased or

3.6 What is utilization in a manufacturing plant? Provide a definition.

3.7 What is availability and how is it defined?
3.8 What is manufacturing lcad time?
3.9 What is work-in-process?
3.10 What is a variable cost in manufacturing?
3.11 What is the difference between direct labor cost and material cost in manufacturing?
3.12 What is an overhead rate and how is it calculated?
3.13 Why should factory overhead expenses be separated from corporate overhead expenses?
3.14 What is the capital recovery factor in cost analysis?

PROBLEMs

Answers to problems labeled (A) are listed in the appendix.

Cycle Time and Production Rate

3.1 (A) A batch of parts is produced on a semiautomated production machine. Batch size
is requires 50 min. A worker loads and unloads the machine each cycle,
250 units. Setup
whichtakes0.40 min. Machine processing time is 2.50 min/cycle, and tool handling time is
negligible. One part is produced each cycle. Determine (a) average cycle time, (6) time to
complete the batch, and (c) average production rate.
3.2 A batch production operation has a machine setup time of 4.0 hr and a processing time of
1.50 min per cycle. Three parts are produced each
cycle. No tool handling time is included
in the cycle. Part handling time each
cycle is 30 sec. It consists of the worker obtaining
three starting work units from a parts tray,
loading them into the machine, and then after
processing, unloading the completed units and placing them into the same tray. Each tray
holds 27 work units. When all of the
starting work units have been replaced with com-
pleted units, the tray of completed parts is moved aside and a new tray of starting
is moved into position at the machine. This parts
irregular work element takes 4.0 min. Batch
quantity is 2,700 units. Determine (a) average cycle time, (b) time to complete the batch,
and (c) average production rate.
3.3 A flow-line mass production operation consists of six manual workstations. Work units
are moved synchronously and automatically between
stations, with a transfer time of
10 sec. The manual
processing operations performed at the six stations take 45 sec, 50 sec,
40 sec, 42 sec, 30 sec, and 55 sec,
respectively. Determine (a) cycle time for the line, (b) time
to process one work unit
through the six workstations, (c) average production rate, and
(d) time to produce 20,000 units.
3.4 Average setup time on a certain production machine is 6.0 hr.
parts, and average operation cycle time is 2.5 min. The Average batch size is 40
reliability
acterized by mean time between failures ot 40 hr and a mean
of this machine is char-
time to repair of 35 min.
 Economics
Chap. 3 / Manufacturing Metrics and

rate of the machine?

production
(a) lf availability is ignored, what is the average hourlydetermine
of the machine, its average hourly pro
(b) Taking into account the availability
the actual run time of the
auction rate. (c) Suppose that availability only applied during rate of the ma-
machine and not the setup time. Determine the average hourly production
chine under this scenario.

Plant Capacity and Utilization

3.5 (A) A mass-production plant has eight machines and currently operates two 8-hr shifts per
day, 5 days per week, 50 wecks per year. The cight machines produce the same part each
at a rate of 15 pc/hr. (a) Determine the annual production capacity of this plant. (b) If the
plant were to operate three 8-hr shifts per day, 7 days per week, 52 weeks per year, deter-
mine the annual percentage increase in plant capacity.
3.6 Two million units of a certain product are to be manufactured annually on dedicated pr0-
duction machines that run 8 hr per day, 5 days per week, 50 weeks per year. (a) If the cycle
time of a machine to produce one part is 1.5 min, how many of the dedicated machines will
be
required keep
to up with demand? Assume that availability and utilization are
and that setup time can be neglected. (b) Solve part (a) except that availability = 90%.
100%
3.7 A job shop has four machines and operates 32 hr/wk. During the most recent week, ma-
chine 1 processed part A for 16 hr at a production rate of 10 pc/hr, and part B for 16 hr at a
rate of 7 pc/hr. Machine 2
processed part C for 29 hr at a rate of 14 pc/hr, and was idle 3 hr.
Machine 3 processed part D for 15 hr at a rate of 20
15 pc/hr. Machine 4
pc/hr, and part E for 17 hr at a rate of
processed part F for 15 hr at a rate of 9 pc/hr, part G for 12 hr at a rate
of 18 pc/hr, and was idle the rest of the week.
Determine (a) weekly production output of
the shop and (b)
average utilization of equipment.
3.8 A batch production plant works 40 hr/wk and has
three machines. In a
batches of parts are processed typical week, five
through these machines. Production rates (pc/hr), batch
times, and operation sequences for the parts are
(a) Determine the weekly production rate for the
given in the table below for one week.
rate equal to the
shop. (b) s this weekly production
plant capacity? If not, determine what the output would be if all three
machines could be operated up to 40
hr/wk, given the constraint that no reductions in
weekly production rates are allowed for any part. Use of a
ommended for this problem. spreadsheet calculator is rec

Machine 1 Machine 2 Machine 3

Part Rp1 Tb1 (hr) Rp2 Tb2 (hr)
A 10
Rp3 Tba (hr)
15 15
B 10 18.75
15 14 8
C 10 21
8 21
D 20 25 4
E
16 5 10 8
3.9 There are 10 machines in
the automatic lathe
time on an automatic lathe section of a certain machine
the section is 100. averages 5 hr.
Average batch size for parts shop. The setup
be
Average operation time 9.0 min. Under = processed through
assigned to run one or two
machines. Accordingly, there shop rules, an operator can
tion for the 10 lathes. In five
are
addition to the lathe
operators, there are twooperators
in the sec-
setup workers who
Problems
85

PeLLOTm only machine setups. These setup workers are busy the full shift. The section runs
one d-hr shift per day, 5 days per week. Scrap losses are negligible and availability= 100%.
h e production
control manager claims that the capacity of the section should be 2,00
parts per week. However, the actual output averages only 1,600 units per week. What is the
problem? Recommend a solution.

Manufacturing Lead Time and Work-ln-Process

O . 0 A ) A certain batch of parts is routed through six machines in a batch production plant.
ne setup and operation times for each machine are given in the table below. Batch size is
Z00 and the average nonoperation time per machine is 15 hr. Determine (a) manufacturing
lead time and (b) hourly production rate for operation 4.
Machine 1 2 3 4 5 6
Setup time (hr) 5 3 6 4 5 3
Operation time (min) 3.0 3.3 8.2 3.9 4.5 2.3
3.11 Suppose the part in the previous problem is made in very large quantities on a produc
tion line in which an automated work handling system is used to transfer parts between
machines. Transfer time between stations is 30 sec. Total time required to set up the entire
line is 120 hr. Assume that the operation times at the individual machines remain the same
as in the previous problem. Determine (a) manufacturing lead time for a part coming off
the line, (b) production rate for operation 3, (c) theoretical production rate for the entire
production line. (d) How long would it take to produce 15,000 parts after the setup has
been completed?
3.12 A batch production plant processes an average of 35 batches of parts per week. Five of
those part styles have been selected as a
sample for analysis to assess the production per-
formance of the plant. The five parts are considered to be
representative of the population
of parts processed by the plant. Any machine in the plant can be set up for any type of
batch processed in the plant. Batch
quantities, numbers of operations
in the processing
Sequence, setup times, and cycle times for the parts are listed in the table below. The aver
age nonoperation time per batch per operation is 11.5 hr. The plant operates 40 hr/wk. Use
this sample to determine the following measures of
plant performance: (a) manufacturing
lead time for an average part, (b) plant capacity if all machines could be operated at 100%
utilization, and (c) work-in-process (number of parts-in-process). Use of a spreadsheet cal-
culator is recommended for this problem.

Partj noj Tsuij (hr) Toij (min) Tno (hr)

A 100 6 5.0 9.3 11.5
B 240 3 3.8 8.4 11.5
C 85 4.0 12.0 11.5
250
D
E 140
8
7
6.1 5.7 11.5
3.5 3.2 11.5

3.13 The table below

presents production data for three batches of parts processed through
a batch production plant. Production rates
(R,) are given in parts per hour. Utilization
fractions (f) are the fractions of time during the 40-hr week that the
machine is devoted to
the production of these parts. The parts do not
proceed through the machines in the same
 Economics
Chap. 3 / Manufacturing Metrics and

utilization of
order. Determine (a) weekly production rate, (b) workload, and (c) average
nis set ot equipment. A spreadsheet calculator is recommended for this problem.

Machine3 Machine4
Machine1 Machine 2

3 Rpd fa
Part Rp1 Rp2 Rp3
30 0.15 7.5 0.6
A 15 0.3 22.5 0.2
B 12.5 0.4 8 0.625
10 0.5
20 0.3
C 30 0.2 15 0.4

batch
parts processed through
a
3.14 The table below shows production data for five batches of
production plant. Setup times (Tsu) are given in hours. Operation cycle times ( 7 ) are given
week
fractions of time during the 40-hr
in min per cycle. Utilization fractions () are the
The parts do not proceed
that the machine is devoted to the production of these parts.
rate, (b) work-
through the machines in the same order. Determine (a) weekly productioncalculator is rec-
A spreadsheet
load, and (c) average utilization of this set of equipment.
ommended for this problem

Machine 2 Machine 3
Machine 1

f Te f
Part T f Tsu To su
su
2.25 2.01 0.140 5.00 1.56 0.190
A 2.50 1.50 0.125
0.200 1.25 2.39 0.230
B 3.00 78 0.140 2.90 1.53
0.345 2.30 .50 0.170
C 1.50 1.50 0.150 1.80 4.00
1.75 5.10 0.150 1.60 2.88 0.100
D 4.00 7.20 0.250
0.120 2.55 1.80 0.120
E 2.00 3.20 0.150 2.55 1.80

certain batch manufacturing plant must be processed

se-

B.15 The average part produced in a

batches of parts are
quentially through an average of ten operations. Twenty-five
new

time is 10 min, average setup time is 7.5 hr,

launched each week. Average operation
and average nonoperation time per batch is 12 hr per
average batch size is 20 parts,
machine. There are 25 machines in the plant. Any machine can be set up for any type
of batch processed in the plant. The plant operates 75 production hr/wk. Determine (a)
machines could be
manufacturing lead time for an average part, (b) plant capacity if all
of
operated at 100% utilization, (c) plant utilization, and (d) work-in-process (number
parts-in-process). (e) How would you expect the nonoperation time to be affected by
plant utilization?
3.16 On average, 10 new batches of parts are started through a certain plant each week. Average
batch quantity is 75 parts that are processed through a sequence of ten machines. Setup
time per machine per batch averages 5 hr, and average operation time per machine for
each part is 10 min. Nonoperation time per batch at each machine averages 10 hr. There
are 30 machines in the factory. Any machine can be set up for any type of batch pro-
cessed in the plant. The plant operates 40 hr/wk. The plant manager complains that almost
65 hr of overtime must be authorized each week to keep up with the produetion schedule.
Determine (a) manufacturing lead time for an average order, (b) weekly production capac-
ity of the plant if all machines were operated at 100% utilization, (c) current utilization of
the plant, and (d) average work-in-process (number of parts) in the plant. (e) Why must
overtime be authorized to achieve the desired output?
 87

3.17 A certain job shop specializes in one-of-a-kind orders dealing with parts of medium-to-high
A typical part is processed sequentially through 12 machines in batch sizes of 1.
complexity.
he shop contains a total of ten conventional machine tools and operates 40 hr/wk of pro-
auction time. Average time values on each part per machine are: machining time = 0.6 hr,

work handling time = 0.4 hr, tool change time = 0.3 hr, setup time = 4 hr, and nonop
eration time = 10 hr. A new programmable machine is being considered that can pertorm
all 10 operations in a single setup. The programming of the machine for this part will require
1 hr, however, the programming can be done off-line, without tying up the machine. Setup
time will be just 3 hr because simpler fixtures will be used. Total machining
time will be
reduced to 75% of its previous value due to advanced tool control algorithms; work han-
will be reduced
ding time will be the same as for one machine; and total tool change time
control. For the one
by 30% because tools will be changed automatically under program
each conventional machine.
machine, nonoperation time is expected to be 10 hr, same as for
conventional machines and for thee
new
(a) Determine the manufacturing lead time for the
the following alternatives: (1)a
programmable machine. (b) Compute the plant capacity for
containing two of the
job shop containing the ten traditional machines, and (i) job shop
a

are represented by
the data given
new programmable machines. Assume the typical jobs
alternatives in part
above. (c) Determine the average level of work-in-process
for the two
(b), if the alternative shops operate at full capacity.
consists of three opera-
3.18 A factory produces cardboard boxes. The production sequence
are three machines in
the factory,
tions: (1) cutting, (2) indenting, and (3) printing. There
when op-
one for each operation. The machines are
100% reliable and operate as follows
rolls of cardboard are fed into the cutting
erating at 100% utilization: (1) In cutting, large material for 4,000 blanks.
machine and cut into blanks. Each large roll contains enough
but it takes 35 min to
Production cycle time =
0.03 min per blank during a production run,
indentation lines are pressed into the blanks
change rolls between runs. (2) In indenting,
to allow the blanks to later be bent into boxes. The blanks from the previous cutting op-
eration are divided and consolidated into batches whose starting quantity
2,000 blanks.
=

change diesthe indenta-

at 4.5 min per 100 blanks. Time to
on
Indenting is performed with labels for
tion machine =
30 min. (3) In printing, the indented blanks are printed
divided and
a particular customer. The blanks from the previous indenting operation
are
consolidated into batches whose starting quantity = 1,000 blanks. Printing cycle rate = 30

blanks per min. Between batches, changeover of the printing plates is required, which
takes 20 min. In-process inventory is allowed to build up between machines 1 and 2, and
between machines 2 and 3, so that the machines can operate independently as much as pos-
sible. Determine the maximum possible output of this factory during a 40-hr week, in com-
pleted blanks per week (completed blanks have been cut, indented, and printed)? Assume
steady-state operation, not startup.

Manufacturing Costs
319 (A) The break-even point is to be determined for two production methods, one manual and
the other automated. The manual method requires two workers at $16.50/hr each.
Together,
their production rate is 30 units per hour. The automated method has an initial cost of
$125,000, a 4-year service life, no salvage value, and annual maintenance costs= $3,000.
No labor (except for maintenance) is
required for the machine, but the power to operate
it is 50 kW (when running). Cost of electric
power is $0.05 per kWh. The production rate
for the automated machine is 5 units hour.
per (a) Determine the break-even point for
the two methods, using a rate of return =
25%. (5) How many hours of
would be required for each method to reach the operation per year
break-even point?
 Economics
Metrics and
Chap. 3 / Manufacturing
tain
3.20 Theoretically, any given production plant has an optimum output levl nally related
production plant has annual fixed costs = $2,000,000. Variable cost is [unco O
50.
t
be described by the function Cy=
T dI
TO annual output Q in a manner that can
Total annual cost is given by TC = C+ C.0. The unit sales price for oneprou
where UC7
minimizes unit cost UC,
dLS0. (a) Determine the value of O that (b) Determine
carned by the plant at this quantity.
nd compute the annual profit earned by the plant;
and compute the
annua
e that maximizes the annual profit
Ot
duc
profit earned by the plant at this quantity.
company for
the most yeal recent

3.21 nave compiled for a certain manufacturing

been different manutactur
S in the table below. The company
operates two eacCn
ne summary shown overhead rate for
is
Determine (a) the factory
headquarters. year.
ng plants, plusthe corporate overhead rate. The firm will use these rates in the following
a

plant, and (b) corporate

Corporate Headquarters
Plant 1 Plant 2
Expense Category
$1,000,0000 $1,750,000
Direct labor
$3,500,000 $4,000,000
Materials
$1,300,000 $2,300,000
Factory expense $5,000,000
Corporate expense
determined based on the follow-
a certain work
center is to be
2 (A) The hourly rate for overhead rate on labor =
35 %;
$15.00/hr; applicable factory 5 years; rate of
ing data: direct labor
=
rate =
the machine
investment in machine $200,000; service life of
=
rate
capital zero; and the applicable
factory overhead
value in 5 years
=

return =
15%; salvage 8-hr shifts, 250 days per
40%. The work center
will be operated two workload
on the machine (b) If the
=

rate for the work

center.
Determine the appropriate hourly rate for
year. (a) determine the appropriate hourly
one shift operation,
for the cell can only justify
a

the work center.

at a direct
a certain production
machine, one worker is required
3.23 In the operation of 50%. Capital investment
overhead rate =

labor rate $10/hr. Applicable labor factory

=

10 with no salvage value at

the
expected service life years, =

in machine $250,000,
=
cell will
the 30%. The work =

machine factory overhead rate

end of that period. Applicable Determine the appropriate hourly rate for
Rate of return is 25%. (a)
operate 2,000 hr/yr. three shifts, or 6,000 hr/yr,
that the machine were operated
this work cell. (b) Suppose utilization on the hourly
the effect of increased machine
instead of 2,000 hr/yr. Determine
determined in (a).
rate compared to the rate
The start-
customer has requested a quotation
for a machining job consisting of 80 parts.
3.24 A time of
that will cost $17.00 per casting. The average production
ing work part is a casting automatic machine whose equipment cost rate is $66.00/hr. This
the job is 13.80 min on an
overhead costs. Tooling cost is $O.35 per part.
The factory over-
rate does not include any
overhead rate is 230%. These rates are applied only
head rate is 128% and the corporate
material costs. The company uses a 15% markup on
to time and tooling costs, not starting
the quoted price for this job?
total cost for its price quotes. What is
six operations in a batch production plant. Cost of the
3.25 A part is processed through
40 parts. The following table
material for each unit is $5.85. Batch quantity
=

starting
presents time and cost data for
the six operations: 7su setuptime, 7, =
part han-
dling time, 7, = operation processing time, 7, = tool handling time where applicable,

T = nonoperation time, C, = operating cost ot the work center, and C, = tool costs