What is current labor cost per part including setup cost

Assignment Help Operation Management

Reference no: EM132293934

The JIT team in a company is evaluating lot sizes and setup time through the factory. The first machine to be evaluated (M1) requires about 20 minutes of Setup for a new batch (when they change from one product to the next). Each part need 1.2 Minutes for processing.

The products are processed in batch sizes of 60 units. The labor rate is $14.5 per hour.

1)- What is current labor cost per part including setup cost

2)- If the setup time could be reduced to 10 minutes, how much (in %) the labor cost per unit Will decreases

3)- If the setup time is reduced by 40%, what batch size is required to in order to achieve the current (like in part 1) average labor cost per unit?

4)- If average labor cost per unit, also incudes, overhead of 25%. What batch size will achieve the same average labor cost per unit, the same as part 1.

Reference no: EM132293934

Questions Cloud

Examine obstacles to successful change management : Examine obstacles to successful change management and practical guidance to leading change.

Financial services firm is considering three alternatives : A financial services firm is considering three alternatives (denoted A, B and C) for providing a new investment service to its customers.

How the subject relates to content we have covered : This assignment is designed to have students practice applying class learning to relevant, contemporary urban issues in planning. Students will work in pairs.

Write about corporate-social and ethical responsibility : Write about "Corporate, Social, and Ethical Responsibility" in terms of Gunnar Myrdal's Circular, Cumulative, Causation Theory.

What is current labor cost per part including setup cost : What is current labor cost per part including setup cost

What place does marketing and capitalism have in education : What place does marketing and capitalism have in higher education? What are the pros and cons of a system of higher education driven by corporate markets?

Differences between three types of hypervisors : Discuss your own understanding of the differences between three types of hypervisors. Discuss your understanding of three different applications of virtual

Write operational plan and executive summary : In this assignment you will revise and augment the materials you have produced in the course thus far to create a business plan for your arts-based venture.

Analyze the fundamental tenets of transformational learning : Speculate on the role of transformational learning in nurturing a positive relationship between the instructor and student relative to your chosen theory.

User Account

All Pages