What is the break-even point of the current process

Assignment Help Operation Management
Reference no: EM13995136

1. Identify the four types of layouts and their characteristics.

2. The manufacturing engineers at Suny Manufacturing were working on a new remote- controlled toy Monster Truck. They hired a production consultant to help them determine the best type of production process to meet the forecasted demand for this new product. The consultant recommended that they use a product layout. He told the manufacturing engineers that the line must be able to product 600 Monster Trucks per day to meet the demand forecast. The workers in the plant work eight hours per day. The task information for the new Monster Truck is given below:

Task

Time (seconds)

Predecessors

A

28

-

B

13

-

C

35

B

D

11

A

E

20

C,D

F

6

D,E

G

23

F

H

25

F

I

37

G

J

11

G,H

 K               

27                     

I,J         

a. Draw the precedence diagram.

b. What is the takt time?

c. What is the theoretical minimum number of workstations?

d. Assign the tasks to the workstations to balance the line using the longest operating time rule.

e. What is the efficiency of the balanced line?

3. The Jazzy Java Company is considering upgrading its espresso machine to reduce the time to make each cup of coffee. The current machine has fixed costs of $3,000 per year and variable costs of $.75 per cup of coffee. With the new machine, fixed costs increase to $7,000 per year and variable costs are $.40 per cup of coffee. On average, the price of coffee is $3.00 per cup.

a. What is the break-even point of the current process?

b. What is the net income with the current process if 8,000 cups of coffee are sold per year?

c. What is the indifference point between the two processes?

d. If the forecast is for 12,500 cups of coffee to be sold each year, which process should be used? Why?

4. What is the benefit of cost of quality (COQ) analysis? Name and explain major cost categories identified by COQ. Why is quality at the source better than quality through inspection? Next, describe how each type of cost would change (increase, decrease, or remain the same) if we designed a higher-quality product that was easier to manufacture.

Reference no: EM13995136

Questions Cloud

How much do people on earth age during the trip to the star : How much do people on earth age during the trip to the star? How much do people on the ship age during the trip to the star? What do observers on the ship measure for the earth-to-star distance?
Which if any of these costs should be accrued : A possible product defect that is reasonably possible and can be reasonably estimated,
Mailed questionnaire or telephone interview : In the following situations, decide whether you would use a personal interview, observation, mailed questionnaire or telephone interview. Give your reasons.
What is the rate of change of the angular speed : What is the rate of change of the angular speed? The moment of inertia of a rod of mass M and length L about its center of mass is ML2/12.
What is the break-even point of the current process : The Jazzy Java Company is considering upgrading its espresso machine to reduce the time to make each cup of coffee. The current machine has fixed costs of $3,000 per year and variable costs of $.75 per cup of coffee. What is the break-even point o..
Media portrayals of crime : Do you think it is realistic? Why? Why not? Use scholarly research to support how media portrayals of crime are not always what they seem.
Compute the speed of the wave in the string : Consider a string with a length of 54.5 cm tied at both end (like on a stringed instrument). If the frequency of the first harmonic on the string is 267 Hz, determine the speed of the wave in the string.
What is the height h of the sheet : An opaque sheet is placed over the bottom of the mirror. When the camera views the reflection of the stick, the top 0.8 m of the stick can be seen (that is y = 0 m to y = 1.2 m is hidden because of the sheet). What is the height h of the sheet?
Particular artifact portrays crime : Choose one contemporary media artifact having to do with crime. This can be a single episode of a television show, a film, a bestselling book, a video game or a news report in any medium and write analysis of how this particular artifact portrays ..

Reviews

Write a Review

Operation Management Questions & Answers

  Which internal parties and external parties must

which internal parties and external parties must procurement consult with when considering whether to produce a product

  What is the bottleneck time of the system

What is the bottleneck time of the system. A production process at Kenneth Day Manufacturing. The drilling operation occurs separately from, and simultaneously with, the sawing and sanding operations.

  Discuss the national differences in political economy

Your firm is considering to open a new factory via direct investment in Latin America and management is evaluating the specific country locations for this project.

  Demonstrate an understanding of terms

1. Demonstrate an understanding of terms and title transfer for the ownership of inventories or assets, and who pays for the freight under each term.

  Advantages & disadvantages of flexible staffing in workforce

What are some considerations that (you) could take in developing and implementing an accident prevention program for plant personnel?

  Pricing decisions in argentina be delegated to local manager

Imagine you are the marketing manager for a U.S. manufacturer of paper products (including paper plates, paper towels, napkins, toilet paper, and tissues).

  What three pieces of legislation have been most important

What three pieces of legislation have been most important in defining the rights of management and unions? Why and what role did they play?

  Soft skills necessary for a college professors job

Indicate at least five soft skills necessary for a college professor's job. Put together a structured interview with at least 10 questions for hiring assistant managers at a large retail store (Target/Best Buy, etc). Think of a job you have or recent..

  Determine the number of units-conforming units

A process produces a total of 300 units and has a total of 80 defects. Determine the number of units it would take to produce 100 conforming units. Show all work.

  Describe which dimension of e-commerce technology

The integration of video, audio also text marketing messages into a single marketing message also consumer experience describes which dimension of e-commerce technology.

  Passenger screening in terms of concentric ring theory

Your paper should be oriented towards a primary commercial service airport in the United States. This is a best-case scenario so consider the budget funded. Discuss passenger screening in terms of concentric ring theory (defense-in-depth). In othe..

  International registration of trademarks

China is a signatory country to the Madrid Protocol on the international registration of trademarks. Starbucks opened its first cafe´ in China in 1999 and has added outlets in numerous locations including Shanghai and at the Great Wall and the imperi..

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