Product A Product: A Step 1 at workstation V Step 2 at workstation Y Finish with step 3 at workstation X $5 Price: $75/unit (30 min) (10 min) (10 min) Demand: 60 units/wk Raw materials $5 Purchased part Product B Product: B Step 1 at workstation Y Finish with step 2 at workstation X $3 Price: $72/unit (10 min) (20 min) Demand: 80 units/wk Raw materials $2 Purchased part Product C Step 2 at workstation Z (5 min) Finish with step 4 at workstation Y (5 min) Product: C Step 1 at workstation W Step 3 at workstation X (5 min) $2 Price: Demand: 80 units/wk $45/unit (5 min) Raw materials $3 Purchased part Product D Step 1 at workstation W Step 2 at workstation Z Finish with step 3 at workstation Y Product: D $4 Price: $38/unit (15 min) (10 min) (5 min) Demand: 100 units/wk Raw materials $6 Purchased part A FIGURE 5.2 Flowchart for Products A, B
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Diablo Electronics manufactures four unique products (A, B, C, and D) that are fabricated and assembled
in five different workstations (V, W, X, Y, and Z) using a small batch process. Each workstation is staffed
by a worker who is dedicated to work a single shift per day at an assigned workstation. Batch setup
times have been reduced to such an extent that they can be considered negligible. A flowchart denotes
the path each product follows through the manufacturing process as shown in Figure 5.2, where each
product’s price, demand per week, and processing times per unit are indicated as well. Inverted triangles
represent purchased parts and raw materials consumed per unit at different workstations. Diablo can
make and sell up to the limit of its demand per week, and no penalties are incurred for not being able to
meet all the demand.
Which of the five workstations (V, W, X, Y, or Z) has the highest utilization, and thus serves as the bottle-
neck for Diablo Electronics?
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