Question

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 = ____________

Answer 1

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.