Overestimated by the process engineers

Assignment Help Business Management
Reference no: EM131438032

Question 1: Semiconductor manufacturing involves taking a flat disc of silicon, called a wafer, and depositing many layers of material on top of it. Each layer has a pattern on it that, upon completion, defines the electrical circuits of the finished microprocessor. Each 8- inch wafer has up to 100 microprocessors on it. However, the typical average yield of production line is 75% good microprocessor per wafer.

At one local company, the process engineers responsible for the chemical vapordisposition (CVD) tool (i.e., process equipment) that deposits one of the many layers have an idea for improving overall yield. They propose to improve this tool's vacuum with redesigning of one of its major components. The engineers believe the project will result in a 2% increase in the average production yield of nondirective microprocessors per wafer.

This company has only one CVD tools, and it can process 10 wafers per hour. The process engineers have determined that CVD tool has an average utilization rate (i.e., "time running") of 80%. A wafer costs $5,000 to manufacture, and o good microprocessor can be sold for $100. These semiconductor fabrication plants ("fabs") operate 168 hours per week, and all good microprocessors produced can be sold. The capital investment required for the project is $250,000, and maintenance and support expenses are expected to be $25,000 per month. The lifetime of the modified tool will be five years, and the company uses 12% MARR per year (compounded monthly). Before implementation the proposed engineering solution, top management has posed the following questions to you (hired as an independent consultant) to evaluate the merits of the proposal:

(a) Based on the PW method, should the project be approved?

(b) If the achievable improvement in production yield has been overestimated by the process engineers, at what percent yield improvement would the project breakeven?

Reference no: EM131438032

Questions Cloud

Discuss the opportunities for the implementation of training : Discuss at least three challenges and three opportunities for the implementation and maintenance of an effective employee training program.Post your initial response to the Discussion Area below. Continue to get to know your fellow classmates and..
Payoff diagram of the convertible bond : Investinus, Inc. issues a convertible bond with a face value of $120, with the option to convert the bond into 3 shares of stock in the company. Draw the payoff diagram of the convertible bond.
Define the phrases or sentences with reasons : In a job costing system, it is necessary to divide up the business into departments. Fixed costs (or overheads) will be collected for each department. Where a particular fixed cost relates to the business as a whole, it must be divided between the..
Provide at least one example to illustrate your answer : Aristotle claims that if you are suffering terrible misfortune, Provide at least one example to illustrate your answer, and refer to the readings and media to support your view.
Overestimated by the process engineers : If the achievable improvement in production yield has been overestimated by the process engineers, at what percent yield improvement would the project breakeven?
Increase in viewing options available to fans : Discuss, in your own words, the economic effect onthe sports industry of the increase in viewing options available to fans (sports specialty channels, internet streaming, etc.)
What would the virtuous person have done instead : How did their actions display or fail to display that virtue, and in the case of the failure, what would the virtuous person have done instead? Be sure to share the links with your classmates so they can read the full articles or watch the videos..
Are adult learning theories evident in the course design : Explain the training needs analysis approach that your organization uses to define training needs. Describe the process for capturing needs for individuals, groups, and the wider skills for the organization.
Explain what advantages the new management accountant : Kaplan plc makes a range of suitcases of various sizes and shapes. There are ten different models of suitcase produced by the business. In order to keep inventories of finished suitcases to a minimum, each model is made in a small batch.

Reviews

Write a Review

Business Management Questions & Answers

  Describe the role of leadership-management-organizational

Describe the role of leadership, management, organizational structure, and the culture of the organization and the departments that shows how it failed and succeeded for the blockbuster organization?

  Determine the number of students

Determine the number of students who would receive an "A," "B," "C," "D," and "F" using a standard grading scheme where 90-100 earns an "A," 80-89 earns a "B," 70-79 earns a "C," 65-69 earns a "D," and below 65 earns an "F." Describe this grade di..

  Written in classical greek and classical latin

Classics with a capital "C" refers only to works written in Classical Greek and Classical Latin, the languages of Demosthenes of Athens Greece, and Cicero of Rome. Thus the New Testament is not a Classic because it is written in Coine or "gutter G..

  Explain about concept of groupware

Show what is meant by the concept of "groupware," and explain the conditions within the organization that are necessary for this to be an effective communication medium for the organization.

  Critical path analysis method

Critical Care Hospital will be buying a CATSCAN in the next 6-months. The CATSCAN machine will be installed in radiology section and will require a significant renovation for the area.

  Classify employee professional development needs

Appraisal the course catalogue descriptions within Boardman Corporate University linked through the Boardman Management Group. Classify two employee professional development needs from two different services provided on Baderman Island

  Firm average annual compound growth rate

What is the firm's average annual compound growth rate over last 49 years?

  1 how might one envision or compare inspiration empowerment

1. how might one envision or compare inspiration empowerment initiative and communication between leaders and followers

  Write a one to two page paper summarizing your findings

Write a one to two page paper summarizing your findings. The written summary should be double-spaced using 12-point Times New Roman font.

  Define the elements of a legal contract using the scenario

Define the elements of a legal contract using examples from the scenario where applicable. Decide whether or not there was a contract for the purchase of the automobile.

  What was your thought process as you were making decision

How prepared were you to make the decision? What was your thought process as you were making the decision? What financial information did you need to make the decision and why?

  What is the value of term number

What is the value of term number 43 for an arithmetic sequence with a1=78.3 and common difference 7.2?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd