Question

In: Mechanical Engineering

Q1: Milling machines at a big company are usually down because of setups for an average...

Q1:

Milling machines at a big company are usually down because of setups for an average of 15.8 percent of the time in three shifts. If machine downtime is costing the company 178.17 dollars per hour, how much does setup time cost for each machine on an annual basis? Assume five days per week and 52 weeks per year.

Cost = ____________

Q2:

A production system has a burden rate of 346 dollars per hour and a setup time of 4.3 hours. The system also has a lot size of 487 parts. If the system must move to a 73 part lot size, how much must the setup time be reduced to keep the setup cost per part constant?

New Setup Time = ____________ hours

Q3:

A local company has machine footprints that total 6,651 square feet and 6,165 square feet of value-adding assembly area. If the plant has 28,915 total square feet of product and inventory area, what is the manufacturing-space ratio? Express your answer with two decimal places.

Ratio = ____________ %

Based on your previous answer, is this a world-class facility?

__________

Question 4:

The raw material for a product has a cost of 13.4 dollars per unit. The burden rate for the equipment that is doing all the machining operations on the part is 369 dollars per hour, the required time to finish the part is 8.28 minutes per part, while the setup time for the equipment is 1.89 hours. If this part is produced using lot sizes of 79 units, what percentage of the part cost is due to setup time? If the system must move to a 36 part lot size, how much must the setup time be reduced to keep the setup cost per part constant?

% Due to Setup = ____________ %

New Setup Time = ____________ hours

Question 5:

A very important company has annual sales of 253 million and an average annual inventory valued at 5 million. With a cost of goods sold of 0.92 per sales dollar, what is the inventory turn value for the company? What average inventory turn value would produce a turn ratio of 213.

Inventory Turns = ____________

New Average Inventory = ____________

Expert Solution

Q.1

Answer :- Given:- average setup time = 15.8%

Setup time costing company per hour is 178.17

Consider 3 shifts= 24 hours (8+8+8)

15.8% of 24 hours is = 3.792=> 4.19 hours per day

4.19 * 178.17=746.53 dollars per day

52 weeks * 5 days a week = 52*5= 260 days per year

260 * 746.53 = 194097.8 dollers per year.

Q5

Answer :- Given annual sales= 253 Million

Avg inventory valued = 5 million

Cost of goods sold = 0.92

Avg inventory turn = 213

New average inventory = cost of goods ÷ avg inventory of cost

0.92 ÷ 213= 0.00432

Inventory turns = 250 million ÷ 5 million

= 506 turns

Q3

Given machine foot prints 6651 and 6165

Total plant area for production and inventory is 28915

6651+6165 = 12816

28915 - 12816 = 16099

12816 : 16099

44.32 : 55.67

44.32% for only machine footprints

55.67% for other manufacturing area

Yes this is world class facility.

samet mamat answered 2 years ago

The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machines base...

The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machines base price is $ 108,000, and it would cost another $ 12,500 to modify it for special use. The machine falls into the MACRS 3- year class, and it would be sold after 3 years for $ 65,000. The machine would require an increase in inventory of $ 5,500. The milling machine would have no effect on revenues, but it is expected to save the...

Q1. Make coffee limited manufactures coffee machines for domestic use. The management of the company is...

Q1. Make coffee limited manufactures coffee machines for domestic use. The management of the company is considering next year's production and has asked you to help with certain financial decisions. THE FOLLOWING INFORMATION IS AVAILABLE: Selling price (per machine) RM 80 Direct Materials (per machine) RM 25 Direct labour (per machine) RM 30 Fixed production overheads RM 270,000 per year The company is planning to manufacture 15000 coffee machines next year - DETERMINE THE FOLLOWING a) Marginal cost per coffee...

In recent years, Ivanhoe Company has purchased three machines. Because of frequent employee turnover in the...

In recent years, Ivanhoe Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2020 $135,500 $25,500 10 Straight-line 2 July 1, 2021 80,000 11,400 5 Declining-balance 3 Nov. 1, 2021 77,600...

In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the...

In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2015 $135,500 $35,500 10 Straight-line 2 July 1, 2016 81,500 10,200 ...

In recent years, Concord Company has purchased three machines. Because of frequent employee turnover in the...

In recent years, Concord Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2020 $ 96,600 $ 14,000 8 Straight-line 2 July 1, 2021 88,500 12,000 5 Declining-balance 3 Nov. 1,...

In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the...

In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2020 $126,000 $16,000 10 Straight-line 2 July 1, 2021 79,000 11,200 5 Declining-balance 3 Nov. 1, 2021 71,900...

A company has three machines. On any day, each working machine breaks down with probability 0.4,...

A company has three machines. On any day, each working machine breaks down with probability 0.4, independent of other machines. At the end of each day, the machines that have broken down are sent to a repairman who can work on only one machine at a time. When the repairman has one or more machines to repair at the beginning of a day, he repairs and returns exactly one at the end of that day. Let Xn be the number...

Employees of a big service company have an average wage of $7.00 per hour with a...

Employees of a big service company have an average wage of $7.00 per hour with a standard deviation of $0.50. The military industry has 64 employees of a certain ethnical group that have an average wage of $6.90 per hour. Is it resonable to suppose that the wage of the ethnical group is equivalent to that of the random sample taken from the employees from the military industry.

A manufacturing company claims that its machines dispense, on average, 7 ounces per cup with a...

A manufacturing company claims that its machines dispense, on average, 7 ounces per cup with a standard deviation of 0.15 ounces. A consumer is skeptical of this claim, believing that the mean amount dispensed is less than 7 ounces. A sample of size 100 is chosen, which yields the average amount per cup: 6.6 ounces, what conclusions can be drawn? State the null and alternative hypotheses, and compute the P–value to justify your answer.