Concept explainers
a)
To determine: The cost of plan A layout.
Introduction: Process layout refers to the plan or graphical representation about the design of the floor of a plant. It helps the firm to improve the efficiency of the design and it would help to improve the location of the departments.
a)
Answer to Problem 2P
The cost of plan A layout is $23,400.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of plan A layout:
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute into the equation (1), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of plan A layout is $23,400.
b)
To determine: The cost of the layout.
b)
Answer to Problem 2P
The cost of the layout is $20,600.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of the layout:
After switching departments F and P, calculate the total material handling cost, MH cost using the formula
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute in equation (2), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of the layout is $20,600.
c)
To determine: The cost of the layout.
c)
Answer to Problem 2P
The cost of the layout is $22,000.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of the layout:
After switching departments M and D, calculate the total material handling cost, MH cost using the formula
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute in equation (3), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of the layout is $22,000.
d)
To determine: The best layout in terms of cost perspective.
d)
Explanation of Solution
Best layout in terms of cost perspective:
From above calculations, the cost perspective, Plan B which has the total material handling costs of
Hence, Plan B is the best layout.
Want to see more full solutions like this?
Chapter 9 Solutions
Principles Of Operations Management
- J.C. Howard’s medical testing company in Kansas wishes to assign a set of jobs to a set of machines. The follow-ing table provides the production data of each machine when performing the specific job: MACHINEABCD1 7 9 8 102 10 9 7 63 11 5 9 64 9 11 5 8 a) Determine the assignment of jobs to machines that will maxi-mize total production. b) What is the total production of your assignments?arrow_forwardLine balancing As the Operations Manager of Shane Manufacturing Ltd., you are given the task to balance the assembly line that is used to produce a special type of toy. a. Develop your own scenario (quantitative example) of this line balancing problem. Include all relevant information. b. Draw the precedence diagram for the problem that you set up in part “a" above. c. Use the example that you set up to demonstrate how you will balance the line. d. Calculate the efficiency of the line.arrow_forwardGordon Miller's job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work areas are: Workpieces moved per week between work areas are: A C ABCD A A It costs Gordon $1 to move 1 work piece 1 foot. The weekly total material handling cost of the layout= $ (enter your response as a whole number). B T B 900 C 8 7 C 800 400 D 6 11 D 500 400 700 Darrow_forward
- Print Item Equivalent Units of Production Data for the two departments of Kimble & Pierce Company for June of the current fiscal year are as follows: Drawing Department Winding Department Work in process, June 1 10,000 units, 38% completed 4,000 units, 35% completed Completed and transferred to next processing department during June 60,000 units 60,500 units Work in process, June 30 11,500 units, 70% completed 3,500 units, 60% completed Production begins in the Drawing Department and finishes in the Winding Department. a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Drawing Department. If an amount is zero, enter in "0". Drawing Department Direct Materials and Conversion Equivalent Units of Production For June Whole Units Direct MaterialsEquivalent Units ConversionEquivalent Units Inventory in process, June 1 fill…arrow_forwardDescribe the impact that these items have on the capacity need of Work Center 101 over the eight week period.arrow_forwardHow do bottlenecks increase the work in process inventory of manufacturing plants?arrow_forward
- XYZ Company produces and sells 2 products, Lambda and Gamma, and the production process goes through two departments. Traditionally Manufacturing Overhead (M/O) cost is applied on the basis of direct labor hours (DLH); estimated M/O cost is $ 5,757,500 and the estimated DLH is $12,250 for the most recent period.The team decided to replace traditional plantwide costing system to activity-based costing system. There are 3 activity cost pools which represent 3 activity areas at the plant. Direct Labor wage rate is $ 30 per hour. Compute total cost per unit (for lambda and gamma) using activity-based approach. (round your numbers).arrow_forwardA small firm intends to increase the capacity of a bottleneck operation for producing a product by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $30000 for A and $25,000 for B; variable costs per unit would be $10 for A and $12 for B; and the revenue per unit would be $25. i. Find the total cost functions for alternatives A and B, and the revenue function ii. Draw both the total cost functions and the revenue function in the same figure. iii. Find the break-even point for the alternatives A and B and show it in the figure iv. Is there any volume of output at which both the alternatives yield the same profit? If so, show it in the figure. If not, identify the volume of output at which the alternatives are indifferentarrow_forwardThere is a canteen set up serving food (Breakfast, Lunch, Snacks-tea, and Dinner) to 500 students in a B school. It has a huge well-furnished dining hall and has a serving zone where students queue to pick up their eatables. The Institute director, during his regular Gemba walks in the canteen, has seen a lot of inefficiency in the related operational processes and needs a major improvement. (a)Provide one relatable and relevant example of five of the eight wastes under Lean systems which are likely to be witnessed in the canteen. (b)Recommend lean tools & techniques/system solutions to be employed for curbing each of those five wastes with a line on justification. (c) Suggest three key enablers and measures track the progress on lean in the canteen.arrow_forward
- Canine Kennels Company (CKC) manufactures two different types of dog chew toys (A and B, sold in 1,000-count boxes) that are manufactured and assembled on three different workstations (W, X, and Y) using a small-batch process (see the figure below). Batch setup times are negligible. The flowchart denotes the path each product follows through the manufacturing process, and each product's price, demand per week, and processing times per unit are indicated as well. Purchased parts and raw materials consumed during production are represented by inverted triangles. CKC can make and sell up to the limit of its demand per week; no penalties are incurred for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $6 per hour. Total labor costs per week are fixed. Variable overhead costs are $3,500/week. The plant operates one 8-hour shift per day, or 40 hours/week. Find the answers in the…arrow_forwardCanine Kennels Company (CKC) manufactures two different types of dog chew toys (A and B, sold in 1,000-count boxes) that are manufactured and assembled on three different workstations (W, X, and Y) using a small-batch process (see the figure below). Batch setup times are negligible. The flowchart denotes the path each product follows through the manufacturing process, and each product's price, demand per week, and processing times per unit are indicated as well. Purchased parts and raw materials consumed during production are represented by inverted triangles. CKC can make and sell up to the limit of its demand per week; no penalties are incurred for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to working on that workstation alone and is paid $6 per hour. Total labor costs per week are fixed. Variable overhead costs are $3,500/week. The plant operates one 8-hour shift per day or 40 hours/week. Which of the three workstations, W, X, or…arrow_forwardCanine Kennels Company (CKC) manufactures two different types of dog chew toys (A and B, sold in 1,000-count boxes) that are manufactured and assembled on three different workstations (W, X, and Y) using a small-batch process (see the figure below). Batch setup times are negligible. The flowchart denotes the path each product follows through the manufacturing process, and each product's price, demand per week, and processing times per unit are indicated as well. Purchased parts and raw materials consumed during production are represented by inverted triangles. CKC can make and sell up to the limit of its demand per week; no penalties are incurred for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $10 per hour. Total labor costs per week are fixed. Variable overhead costs are $3,500/week. The plant operates one 8-hour shift per day, or 40 hours/week. Product A $4 Raw materials Product B $7 Raw…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,