Spirit AeroSystems (SAS) provides aircraft maintenance, repair, and overhaul (MRO) services to the aviation industry. Competitors in the aviation industry increasingly recognize the importance of maintaining, repairing, and overhauling their fleet. Enhanced fleet safety also plays a vital role in influencing customers' choice of airline carriers. As a result, effective MRO management can not only boost an airline's safety ratings, but influence travelers preferred There are three overhead resources at SAS: Machines, Mechanier choice.¹ , and Engineers. Machines include tools and equipment, as well as specialised computer software to diagnose and fix electronic faults with engine management system, for example. Three primary activities at SAS use these resources. The activities are Maintenance, Repair, and Overhaul. The following table identifies the number of activity consumes: Resource Hours Consumed by Activities Machine Hours Mechanic Hours Engineer Hours of each overhead resource that one hour of each Lafarge Maintenance 8.00 4.00 1.50 Repair 11.00 14.00 5.00 For example, each hour of Maintenance activity consumes 8.00 Machine hours, 4.00 Mechanic hours, and 1.50 Engineer hours. omer 1 to consuming overhead resources, some activities consume supplies. S cost is a variable cost, and it can be directly attributed to the use of the activity. This means that the cost of the supplies is an integral part of the total cost of each of these activities. Each hour of the Repair activity has a Supplies cost of $1,000. Each hour of the Overhaul activity has a Supplies d resourost of $2,500. The following yearly information pertains to the three overhead used by the three activities. For the Machines overhead resource, total cost was $500,000 and practical capacity was 5,000 hours. For the Mechanics overhead resource, total cost was $1,200,000 and practical capacity was 8,000 hours. For the Engineers overhead resource, total cost was! and practical capacity was 3,750 hours. Activity Hours Consumed Hours of Maintenance Activity Hours of Repair Activity Hours of Overhaul Activity The gross profit for each of the three customers was identical, i.e., $180,000. 27.50 15.00 3.00 Overhaul 6.00 10.00 15.00 Finally, the following table summarizes the number of hours of each activity recently consumed by three customers for their aircrafts' MRO services: Customer 2 3.00 14.50 9.00 org23) Customer 3 21.00 0.00 10.00

Spirit AeroSystems (SAS) provides aircraft maintenance, repair, and overhaul (MRO) services to the aviation industry. Competitors in the aviation industry increasingly recognize the importance of maintaining, repairing, and overhauling their fleet. Enhanced fleet safety also plays a vital role in influencing customers' choice of airline carriers. As a result, effective MRO management can not only boost an airline's safety ratings, but influence travelers preferred There are three overhead resources at SAS: Machines, Mechanier choice.¹ , and Engineers. Machines include tools and equipment, as well as specialised computer software to diagnose and fix electronic faults with engine management system, for example. Three primary activities at SAS use these resources. The activities are Maintenance, Repair, and Overhaul. The following table identifies the number of activity consumes: Resource Hours Consumed by Activities Machine Hours Mechanic Hours Engineer Hours of each overhead resource that one hour of each Lafarge Maintenance 8.00 4.00 1.50 Repair 11.00 14.00 5.00 For example, each hour of Maintenance activity consumes 8.00 Machine hours, 4.00 Mechanic hours, and 1.50 Engineer hours. omer 1 to consuming overhead resources, some activities consume supplies. S cost is a variable cost, and it can be directly attributed to the use of the activity. This means that the cost of the supplies is an integral part of the total cost of each of these activities. Each hour of the Repair activity has a Supplies cost of $1,000. Each hour of the Overhaul activity has a Supplies d resourost of $2,500. The following yearly information pertains to the three overhead used by the three activities. For the Machines overhead resource, total cost was $500,000 and practical capacity was 5,000 hours. For the Mechanics overhead resource, total cost was $1,200,000 and practical capacity was 8,000 hours. For the Engineers overhead resource, total cost was! and practical capacity was 3,750 hours. Activity Hours Consumed Hours of Maintenance Activity Hours of Repair Activity Hours of Overhaul Activity The gross profit for each of the three customers was identical, i.e., $180,000. 27.50 15.00 3.00 Overhaul 6.00 10.00 15.00 Finally, the following table summarizes the number of hours of each activity recently consumed by three customers for their aircrafts' MRO services: Customer 2 3.00 14.50 9.00 org23) Customer 3 21.00 0.00 10.00

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...

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