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Problem
A stamping press produces sheet-metal stampings in batches. The press is operated by a worker whose labor rate = $15.00/hr and applicable labor overhead rate = 42%. Cost rate of the press = $22.50/hr and applicable equipment overhead rate = 20%. In one job of interest, batch size = 400 stampings, and the time to set up the die in the press takes 80 min. The die cost $40,000 and is expected to last for 200,000 stampings. Each cycle in the operation, the starting blanks of sheet metal are manually loaded into the press, which takes 42 sec. The actual press stroke takes only 8 sec. Unloading the stamping from the press takes 13 sec. Cost of the start- ing blanks = $0.23/pc. The press operates 250 days per year, 7.5 hours per day, but the operator is paid for 8 hours per day. Assume availability = 100% and scrap rate = 0. Determine (a) cycle time, (b) average production rate with and without setup time included, and (c) cost per stamping produced.
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