Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 8PA
Summary Introduction
To determine: The Takt time of the process and the way a level production
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A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows:
Process 1
Process 2
35 parts/ hour
4 hours/ day
15 parts/hour
7 hours/day
20%
9%
Production rate
Daily production time
Percent of parts rejeted based on visual inspection
Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.
Find the process that maximizes profit per day if each part is made from Php 200 worth of material and can be sold for Php 1,500. Both processes are fully automated, and variable
overhead cost is charged at the rate of Php 2,000 per hour.
Does the process optimise the desired demand of the customer?
A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for
manufacturing, and the parameters of each process are as follows:
Process 1
Process 2
Production Rate
35 parts per hour
15 parts per hour
Daily production time
4 hours per day
7 hours per day
Percent of Parts Rejected
20%
9%
Assume that the daily demand for hubs allows all defect-free items to be sold. Additionally, defective hubs cannot be sold and their material cannot be recovered anymore. Find the process that minimizes the total cost per piece if each part is made from $4 worth of material. Both processes are fully automated, and the variable overhead cost is charges at $40 per hour.
Chapter 8 Solutions
Operations Management
Ch. 8 - Prob. 1CQCh. 8 - Prob. 2CQCh. 8 - Prob. 3CQCh. 8 - Prob. 4CQCh. 8 - Prob. 5CQCh. 8 - Prob. 6CQCh. 8 - Prob. 7CQCh. 8 - Prob. 8CQCh. 8 - What are the two pillars of the Toyota Production...Ch. 8 - Prob. 10CQ
Ch. 8 - Prob. 11CQCh. 8 - Prob. 12CQCh. 8 - Prob. 13CQCh. 8 - Prob. 14CQCh. 8 - Prob. 15CQCh. 8 - Prob. 16CQCh. 8 - Prob. 17CQCh. 8 - Prob. 18CQCh. 8 - Prob. 19CQCh. 8 - A company makes two models, A and B. Which of the...Ch. 8 - Prob. 21CQCh. 8 - Prob. 22CQCh. 8 - Prob. 23CQCh. 8 - Prob. 24CQCh. 8 - Prob. 25CQCh. 8 - Prob. 26CQCh. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 6PACh. 8 - Prob. 7PACh. 8 - Prob. 8PACh. 8 - Prob. 9PACh. 8 - Prob. 10PA
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- A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Production rate Daily production time Process 2 35 parts/hour 4 hours/day 20% 15 parts/hour 7 hours/day 9% Percent parts rejected Assume that the daily demand for hubs allows all defect-free hubs to be sold. Select the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour.arrow_forwardA process makes two products, A and B, and operates 5 days per week, 8 hoursper day. Demand for the two products for the next week is as follows:Day 1: A: 4; B: 6Day 2: A: 5; B: 5Day 3: A: 6; B: 4Day 4: A: 7; B: 3Day 5: A: 3; B: 7What is the takt time of the process? What would a level production schedule look like?arrow_forwardn a manufacturing process, a molded part spends 7 hours in inventory before being placed in a deburring machine, where the part is processed for 2 minutes. After deburring, the part spends 4 hours in inventory waiting for its turn on the polishing machine. The part then spends 7 minutes in polishing before waiting 6 hours in line to be painted. The part goes through a painting process that takes 7 minutes, then spends 11 hours in inventory before being shipped to the customer. What is the percentage of value-added time for the part?arrow_forward
- The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow: Demand forecast (units/yr) Product A Product B 1,000 4,000 Batch size (units/batch) Processing time (hr/unit) 20 10 3.2 4.5 Setup time (hr/batch) 10 20 Both products are produced on the same machine, called Mark I. 11) Using Table 4.1, what is the total number of hours required of Mark I equipment for the next year? A) fewer than 29,000 hours B) between 29,000 and 30,000 hours C) between 30,000 and 31,000 hours D) more than 31,000 hoursarrow_forwardA process makes two products, A and B and operates 5 days per week, 8 hours per day. Demand for the two products for the next week is as follow: Day 1: A: 20 B: 26 Day 2: A: 10 B: 15 Day 3: A: 20 B: 19 Day 4: A: 18 B: 20 Day 5: A: 12 B: 20 What is the takt time of the process? (round answer to 5 decimal places.) What would a level production schedule look like?arrow_forwardWellplace Insurance Company processes insurance policy applications in batches of 50. One day, they had ten batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had three nonconformances, another had five, another had two, and another had one nonconformance. a. What were the proportion nonconforming for each batch? b. What were the nonconformances per unit (NPU) in total for the ten batches?arrow_forward
- What is the definition of a processing item?arrow_forwardWellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had one nonconformance, another had five, another had two, and another had six nonconformance. a. What was the proportion nonconforming for each batch? Round your answers to two decimal places. The proportion nonconforming for the first batch: The proportion nonconforming for the second batch: The proportion nonconforming for the third batch: The proportion nonconforming for the fourth batch: b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places. Total nonconformances per unit for all batches:arrow_forwardWellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had fifteen batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had four nonconformances, another had eight, another had one, and another had five nonconformance. a. What was the proportion nonconforming for each batch? Round your answers to two decimal places. The proportion nonconforming for the first batch: The proportion nonconforming for the second batch: The proportion nonconforming for the third batch: The proportion nonconforming for the fourth batch: b. What was the nonconformance per unit (NPU) in total for the fifteen batches? Round your answer to three decimal places. Total nonconformances per unit for all batches:arrow_forward
- Daily high temp in st louis for the last week were as follows: 93,92,94,95,88,95 (yesterday) a)The high temp for today using a 3-DAY moving average=[__] degrees (round your response to one decimal place)arrow_forward2. Construct a Process Flow Chart of the following: a. Ordering at fast food chain b. Buying meds at Pharmacyarrow_forwardQuasi-Tech Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. Costs have been assigned to each activity using direct tracing and resource drivers as follows: Activity Expected Cost Activity Driver Activity Capacity Engineering $1,000,000 Engineering hours 5,000 hours Setups 900,000 Setups 200 setups Machining 2,000,000 Machine hours 25,000 machine hours Inspection 800,000 Inspection hours 2,500 inspection hours Quasi-Tech produces two models: Model C and Model D. The following table…arrow_forward
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