1. Which machine would you recommend given the following information and interest rate is 10%? New Machine Used Machine P 44,000 Annual Operating Cost 7, 000 First Cost 23, 000 9,000 Annual repair cost Overhaul every 2 years 0 210 350 1,900 Overhaul every 5 years 2,500 Salvage Value Life, years 4,000 3,900 15 8

1. Which machine would you recommend given the following information and interest rate is 10%? New Machine Used Machine P 44,000 Annual Operating Cost 7, 000 First Cost 23, 000 9,000 Annual repair cost Overhaul every 2 years 0 210 350 1,900 Overhaul every 5 years 2,500 Salvage Value Life, years 4,000 3,900 15 8

Precision Machining Technology (MindTap Course List)

2nd Edition

ISBN:9781285444543

Author:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Publisher:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Chapter8: Computer Numerical Control

Section8.8: Computer-aided Design And Computer-aided Manufacturing

Problem 4RQ

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Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 7,500 minutes 12,500 minutes 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 6.30 units per minute 7 units per minute Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 37,800 units 47,250 units
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MACHINE DESIGN1