368 PART 2 | DESIGNING OPERATIONS Problems +874 Amy Xia’s plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because ofthe time needed to change equipment between, syles of hammers, What isthe utilization? + 87.2 Forthepast month, the plant in Problem $7.1, which bas an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems, What i its efficiency? ++ 87.8 Ia plant has an cllecive capacily of 6,500 and an, efficiency of 88%, what isthe actual (planned) output? + 874 A plant has an effective capacity of 900 units per day and produces 800 unis per day with its product mix; what is its elficieney? 87.5 Material delays have routinely limited production ‘of household sinks to 400 units per day. Ifthe plant eificieney is, 80%, what isthe effective capacity? ++ 87.6 The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three depart ments are shown: CE Design 93,600 35 abxicaton 156,000, 1.03 inshing 62,400 1.08 Compute the expected production for next quarter for each department ++ 87.7 Southeastern Oklahoma State University's busi- ness program has the facilities and faculty to handle an enroll- ‘ment of 2,000 new students per semester. However, in an effort to limit class sizes to a “reasonable” level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for ‘business courses Inst semester, conflicting schedules allowed only 1,430 new students to take business courses. What are the utiliza- tion and efficiency ofthis system? ++ 87.8 Under ideal conditions, a service bay at a Fast Lube can serve 6 cars per hour. The effective capacity and efficieney of a Fast Lube service bay are known to be 5.5 and 0.880, respectively What is the minimum number of service bays Fast Lube needs to achieve an anticipated servicing of 200 cars per &-hour day? + $7.9 A production lin at V.J, Sugumaran’s machine shop bas three stations. The frst station ean process a unit in 10 min- ules. The second station has two identical machines, each of whieh can process a unit in 12 minutes, (Hach unit only needs to be pro- cessed on one of the two machines.) The third station can process ‘unit in § minutes. Which station i the botleneck station? ++ $7.40 A work cell at Claris Elis Commercial Laundry bas ‘a workstation with two machines, and each unit produced at the Note: P9€ rears the protien may be soled with POM for Windows andor Excel OM, station needs to be processed by both of the machines. (The same unit cannot be worked on By both machines simultaneously.) Bach machine has a production capacity of 4 units per hour What is the throughput time of the work eel ++ $7.44 The three-sation work eel illustrated in Figure $7.7 has a produet that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2 capacity 20 unitsinr Capacty: 20 unitsinr Figure $7.7) =| stating [=| stations Capacity: §untsinr Capacity: 12 uniter 1a) What i the bottleneck ime of the system? 'b) What i the botUeneck station of this work cll? ©) What is the throughput time? 4) IF the firm operates 10 hours per day, § days per week, what is the weekly capacity of this work cell? + $7.42 The three-station work cell at Pullman Mfg., Ine is illustrated in Figure 87.8. It has two machines at station 1 in parallel (.e., the product needs to go through only one of the two ‘machines before proceeding to station 2, pont | ae Geegy em Smit zo mint Figure $7, a) What is the throughput time ofthis work cell? 'b) What is the botteneck time of this work ell? ©) What is the bottleneck station? 4) I the firm operates § hours per day, 6 days per week, what is the weekly capacity of this work cell? ++ $743 The Pullman Mfg, Ine, three-station work eal illus- trated in Figure $7.8 has two machines at station 1 in parallel (The product needs to go through only one of the two machines before proceeding to station 2.) The manager, Ms, Hartley, has asked you to evaluate the system if she adds a parallel machine at station 2. a) What is the throughput time of the new work eel 'b) What is the bottleneck time of the new work call ©) IC the firm operates & hours per day, 6 days per week, what is the weekly capacity of this work cll? 4) How did the addition of the second machine at workstation 2 affect the performance of the work eell rom Problem $7.12? + 87.16 Klassen Toy Company, Inc., assembles two parts (parts | and 2): Past 1 is frst processed at workstation A for 15 minutes per unit and then processed at workstation B forSUPPLEMENT 7 10 minutes per unit, Part 2 is simultaneously processed at work station C for 20 minutes per unit. Work stations B and C feed the parts to an assembler at workstation D, where the two parts are Assembled, The time at workstation D is 15 minutes, a) What is the bottleneck of this process? 'b) What is the hourly capacity of the process? ++ 8715 A production process at Kenneth Day Manufacturing, js shown in Figure $7.9. The drilling operation occurs separately from, and simultaneously with, sawing and sanding, which are CAPACITY AND CONSTRAINT MANAGEMENT 369 independent and sequential operations. A product needs to go ‘through only one of the three assembly operations (the operations are in parallel), ‘3) Which operation is the bottleneck? »b) What is the bottleneck time? ©) What is the throughput time ofthe overall system? 6) I the firm operates § hours per day, 20 days per month, what Js the monthly capacity ofthe manufacturing process? ‘Assembly sawing [>| sanding (07 untsine 6 unitine 6 untaihe ‘Assembly So 2unisihe (07 untsinr Ding ‘Assembly 2.4 unite (07 untsihr Figue $7.9 ©) IE the owner expects to sell 12,000 pizzas, which oven should she purchase? + $7.16 Smithson Cutting is opening a new line of scissors for g) At what volume should Janelle switch ovens? XC supermarket distribution. Itestimate te fixed corto be $50.00 fants variable costo be S00 per nit Selling pric x expected average $0.75 per unit 4) What is Smitson's break-even point in units? B) What isthe break-even point in dollars? PX + 87.17 Markland Manufacturing intends to increase capac ity by overcoming a bottleneck operation by adding new equip- ment. Two vendors have presented proposals, The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by cach unit is $20.00, 8) What is the break-even point in units for proposal A? ») What is the break-even point in units for proposal B? PAC + $7.18 Using the data in Problem $7.17: 8) What isthe break-even point in dollars for proposal A if you ‘add $10,000 installation tothe fixed cost? ) What is the break-even point in dollars for proposal B if you add $10,000 installation tothe fixed cost? PAC + $7.19 Given the data in Problem $7.17, at what volume (units) of output would the two allernatives yield the same profit? PC ++ $7.20 Janelle Heinke, the owner of Ha'Peppas!, is consider ing a new oven in which to bake the firm's signature dish, vegetar~ jan pizra. Ovea (ype A ean handle 20 pizzas an hour. The fixed costs associated with oven A ate $20,000 and the variable costs are $2.00 per pizza, Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each, 8) What is the break-even point for each oven? 5) Ifthe owner expects to sell 9,000 pizzas, which oven should she purchase? ++ $7.21 Given the following data, calculate a) BEP,; b) BEP, and 6) the profit at 100,000 units $50,000 Poe ++ $7.22 You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $05 8) What is the break-even point in dollars? b) What is the break-even point in units? PX P= S8/unit Y= S4/unit F ++ 87.23 An clectronies firm is eurrently manufacturing an, item that has a variable cost of $50 per unit and a selling price of $1.00 per unit, Fixed costs are $14,000. Current volume is,