Work sheet
Work sheet
Work sheet
1. A certain part is routed through six machines in a batch production plant. The
setup and operation times for each machine are given in the table below. The batch
size is 100 and the average nonoperation time per machine is 12 hours. Determine
(a) manufacturing lead time and (b) production rate for operation 3.
3. The mean time between failure for a certain production machine is 250 hours,
and the mean time to repair is 6 hours. Determine the availability of the machine.
5. Costs have been compiled for a certain manufacturing company for the most
recent year. The summary is shown in the table below. The company operates two
different manufacturing plants, plus a corporate headquarters. Determine (a) the
factory overhead rate for each plant, and (b) the corporate overhead rate. The firm
will use these rates in the following year.
6. Theoretically, any given production plant has an optimum output level. Suppose a
certain production plant has annual fixed costs FC = $2,000,000. Variable cost VC is
functionally related to annual output Q in a manner that can be described by the
function VC = $12 + $0.005Q. Total annual cost is given by TC = FC + VC x Q. The
unit sales price for one production unit P = $250. (a) Determine the value of Q that
minimizes unit cost UC, where UC = TC/Q; and compute the annual profit earned by
Work sheet on chapter - 1
the plant at this quantity. (b) Determine the value of Q that maximizes the annual
profit earned by the plant; and compute the annual profit earned by the plant at this
quantity.
8. A mass-production plant has eight machines and currently operates two 8-hr
shifts per day, 5 days per week, 50 weeks per year. The eight 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, determine the annual percentage increase in plant
capacity.