Question

In: Operations Management

JCL Inc. is a major chip manufacturing firm that sells its products to computer manufacturers like...

JCL Inc. is a major chip manufacturing firm that sells its products to computer manufacturers like Dell, HP, and others. In simplified terms, chip making at JCL Inc. involves three basic operations: depositing, patterning, and etching.

  • Depositing: Using chemical vapor deposition (CVD) technology, an insulating material is deposited on the wafer surface, forming a thin layer of solid material on the chip.
  • Patterning: Photolithography projects a microscopic circuit pattern on the wafer surface, which has a light-sensitive chemical like the emulsion on photographic film. It is repeated many times as each layer of the chip is built.
  • Etching: Etching removes selected material from the chip surface to create the device structures.

The following table lists the required processing times and setup times at each of the steps. Assume that the unit of production is a wafer, from which individual chips are cut at a later stage.

Note: A setup can only begin once the batch has arrived at the machine.

Process Step 1 Depositing 2 Patterning 3 Etching
Setup time 58 min. 26 min. 16 min.
Processing time 0.21 min./unit 0.31 min./unit 0.26 min./unit

(a) What is the process capacity in units per hour with a batch size of 100 wafers?

Answered in a table like:

Deposition units/hr

Patterning units/hr

Etching units/hr


(c) Suppose JCL Inc. came up with a new technology that eliminated the setup time for step 1 (deposition), but increased the processing time to 0.58 minute/unit. What would be the batch size you would choose so as to maximize the overall capacity of the process? (Round your intermediate computations to 2 decimal places. Round your final answer to the nearest whole number.)

Batch size is ___ units?

Solutions

Expert Solution

JCL Inc
process step 1. depositing 2. patterning 3. etching
setup time (min) 58 26 16
processing time (m/unit) 0.21 0.31 0.26
capacity = batch size/(setup time + batch processing time)
a. batch size 100 wafers
step capacity (unit/min) capacity (unit/hour)
1. depositing 1.3 76
2. patterning 1.8 105
3. etching 2.4 143
b.
process step 1. depositing
setup time (min) 0
processing time (m/unit) 0.58
process capacity 1.724137931 units/min
this is the maximum process capacity.
to achieve this capacity, step 1 has to be the bottleneck, hence:
for batch size B:
B/(26+0.31B)>=1.72 (Data for step b. patterning)
1.72*(26+0.31B)<=B
44.83+0.53B<=B
44.83<=(1-0.53)B
44.83<=0.47B
B>=96.3 units
hence, to maximize the overall capacity of the process, the Batch size is 96 units.

formula used:


Related Solutions

Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $1.20 a share last year, and just paid out a dividend of $0.24 per share. Investors believe the company plans to maintain its dividend payout ratio at 20%. ROE equals 22%. Everyone in the market expects this situation to persist indefinitely. a. What is the market price of Chiptech stock? The required return for the...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $1 per share last year and just paid out a dividend of $.50 per share. Investors believe the company plans to maintain its dividend payout ratio at 50%. ROE equals 20%. Everyone in the market expects this situation to persist indefinitely. a. What is the market price of Chiptech stock? The required return for the...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $2.60 a share last year, and just paid out a dividend of $1.17 per share. Investors believe the company plans to maintain its dividend payout ratio at 45%. ROE equals 20%. Everyone in the market expects this situation to persist indefinitely. a. What is the market price of Chiptech stock? The required return for the...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $1.40 a share last year, and just paid out a dividend of $0.63 per share. Investors believe the company plans to maintain its dividend payout ratio at 45%. ROE equals 24%. Everyone in the market expects this situation to persist indefinitely. a. What is the market price of Chiptech stock? The required return for the...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $1 per share last year and just paid out a dividend of $.50 per share. Investors believe the company plans to maintain its dividend payout ratio at 50%. ROE equals 20%. Everyone in the market expects this situation to persist indefinitely. a. What is the market price of Chiptech stock? The required return for the...
8. Chiptech Inc. is an established computer chip Örm with several proÖtable existing products as well...
8. Chiptech Inc. is an established computer chip Örm with several proÖtable existing products as well as some promising new products in development. The company earned $1 a share last year and just paid out a dividend of $0.50 per share. Investors believe the company plans to maintain its dividend payout ratio at 50%. ROE of the company equals 20%. Everyone in the market expects this situation to continue indeÖnitely. (a) What is the market price of Chiptech stock? The...
Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of...
Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $44.00 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $18.80 million. The firm’s tax rate is 30%. What is the after-tax cash flow from the sale of the equipment? (Enter...
Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the...
Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the year 2020 is as follows: Quarter Sales in units Price Revenue Q1, 2020 500 $              400 $     200,000 Q2, 2020 1000                  400          400,000 Q3, 2020 1000                  400          400,000 Q4, 2020 1000                  400          400,000 Q1, 2021 2000                  400          800,000 Q2, 2021 1500                  400          600,000 Q3, 2021 1000 $              400 $     400,000 The company will start its business this year with $30,000 of cash balance. As of Q4 of the...
You are a manager for a firm that sells computer and technological equipment through its stores...
You are a manager for a firm that sells computer and technological equipment through its stores and various online sites. You recently found out that Amazon is releasing a new line of products (through its AmazonBasics line) that are in direct competition with your firm's products. What customer-focused actions would you consider introducing to counter Amazon (and why)?
Crindlen Inc sells a variety of computer products and data plans. Computers are compatible with data...
Crindlen Inc sells a variety of computer products and data plans. Computers are compatible with data and computers do not need to be repaired or serviced by the company. Customers can pick to buy a computer or data plans separately; however, to there is a bundle they offer with discounts, sales staff encourage customers to bundle their transacitons. On Aug 27, the company offered a special. Customers who ordered a 2-year data service plan received the latest computer - The...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT