Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.

In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months:

The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the manufacturing cycle efficiency (MCE) for each month.

1-c. Compute the delivery cycle time for each month.

3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE.

3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE.

1-a. Compute the throughput time for each month.

1-b. Compute the manufacturing cycle efficiency (MCE) for each month.

1-c. Compute the delivery cycle time for each month.

(Round your answers to 1 decimal place.)

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3-a. (Month 5) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE.

3-b. (Month 6) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE.

(Round your answers to 1 decimal place.)

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Assume you are the management accountant for the Foleo Group.  After her meetings with the various business units, Tracey Chen has identified a number of opportunities for the organisation to improve its sustainability performance.  One such opportunity is Robyn Smith’s suggestion for moving the manufacturing operations of Foleo Fones and Accessories off-shore to address the local residents’ concerns.  Robyn had done some research and has supplied Tracey with the below data relating to the relocation of Foleo’s manufacturing plants offshore (specifically to Guangzhou in southern China).

Robyn has advised Tracey that the expected relocation costs to Guangzhou would amount to $1,500,000 but that some of these costs could be offset with the sale of Foleo’s current manufacturing assets and the sublease of the plants (the amount of which, she has estimated as an inflow of $950,000 at the time of the relocation).

As mentioned above, the relocation of Foleo’s manufacturing operations will mean the closure of the Australian plants, which will result in all factory workers currently employed at the various Foleo plants being laid off.   More than half of these workers have been with Foleo for at least 10 years and many of them have not claimed their accrued long service and annual leave.  Tracey has calculated that these workers’ entitlements, which must be paid on their termination, will amount to $6,400,000.   Whilst the cost savings look good on paper, Tracey has some concerns about the merit of this proposal in terms of its alignment with the Foleo Group’s overarching objectives and the newly formulated sustainability objectives.  She is also concerned about relinquishing control over the manufacturing process and how this will impact the quality of the products being produced and ultimately customer satisfaction.  

Tracey has asked you to analyse this data and report back to her with a recommendation that she can take to a meeting with Robyn Smith and Allan Raymond for further discussion.

Identify the stakeholders who would be affected if the above proposal to relocation of the Foleo Group’s manufacturing operations was approved and explain how each would be impacted.

(HINT:  You should identify at least four stakeholders and explain the impact on each of them.)                 (0.8 mark)

(Award 0.2 mark for each pair of identified stakeholder and impact explanation up to a maximum of 0.8 mark)

Read and comment:

$2500: “A Fair Price for Hamilton”

NY Times, 23 October 2016

1. Gregory Mankiw

Consumers of goods and services do not typically wish that producers charged higher prices. But that was exactly my desire on a recent trip to New York City.

The story begins with a basic mismatch: I am a big fan of theater, and I live just outside Boston. While Boston is a good city for the arts, it is not the mecca that New York is. Unfortunately, I’m in New York only a few times every year. But when my professional or personal life takes me into the city, I always try to squeeze a play into my schedule.

That occurred most recently over Columbus Day weekend. I was in New York visiting colleges with my wife and younger son, who is a high school senior. Most colleges don’t give tours on Sunday, so we had Sunday afternoon free — perfect timing to see a matinee.

We had no doubt about what we wanted to see. “Hamilton” had received rave reviews from both critics and our friends who had seen it. We had much enjoyed “In the Heights,” an earlier musical by Lin-Manuel Miranda, the genius behind “Hamilton.” And as an economist, I have always viewed Alexander Hamilton, the first Treasury secretary, as one of the most important and intriguing founding fathers.

You may have heard that “Hamilton” tickets are hard to come by. The show is so popular that tickets from the theater sell out quickly and far in advance. On a recent episode of“Saturday Night Live (Links to an external site.)Links to an external site.” that Mr. Miranda was hosting, the television show’s producer, Lorne Michaels, jokingly asked him about getting “Hamilton” tickets. Mr. Miranda demurred.

We, however, had no problem getting tickets. Two weeks before our trip, I logged into StubHub, the online ticket marketplace owned by eBay. I found the performance we wanted, located some great seats and within a few minutes was printing our tickets.

The rub is the price. Including StubHub’s fee, I paid $2,500 a ticket, about five times their face value. Such a large markup is not unusual (Links to an external site.)Links to an external site..

Now, at this point, some people might object to this price. Terms like “scalping” and “price gouging” are pejoratives used to demonize those who resell tickets at whatever high prices the market will bear.

To be sure, most people can’t easily afford paying so much for a few hours of entertainment. That is indeed lamentable. The arts expand our horizons, and in a perfect world, everyone would have the opportunity to see a megahit like “Hamilton.”

Yet there is another way to view the situation. It was only because the price was so high that I was able to buy tickets at all on such short notice. If legal restrictions or moral sanctions had forced prices to remain close to face value, it is likely that no tickets would have been available by the time my family got around to planning its trip to the city.

High prices are a natural reflection of great demand and scant supply. In a free market, in which private individuals can engage in mutually advantageous gains from trade, they are inevitable until demand subsides or supply expands.

The comedian Jay Leno (Links to an external site.)Links to an external site. learned this lesson some years ago. In 2009, while the economy was suffering through the Great Recession, Mr. Leno, a car enthusiast, generously performed two free “Comedy Stimulus” shows for unemployed workers near Detroit.

Yet zero is not, as economists put it, the equilibrium price to see a live performance by Jay Leno. Some of the unemployed who received free tickets tried to turn around and sell them on eBay for about $800. When Mr. Leno learned about this, he objected, and eBay agreed to take down offers to resell the tickets.

But why should Mr. Leno have objected? Some unemployed workers, presumably short on cash, thought that the $800 in their pockets was more valuable than an evening of laughs. Similarly, the ticket buyers would voluntarily give up their $800 for a seat. The transaction makes both buyer and seller better off. That is how free markets are supposed to work.

The only person made worse off by the sale is, perhaps, Mr. Leno himself. He wanted to be seen performing before an audience of the unemployed. Doing a show for higher-income residents of Michigan might not be viewed as altruistic, even if it left the unemployed better off. In other words, Mr. Leno’s objection to the eBay resale was arguably a rationally self-interested act in that the resale impeded his ability to appear selfless to others and, even, to himself.

Although I don’t object to ticket resales above face value, and I think it is pernicious when others do, I was saddened by my “Hamilton” transaction in one important way. About 80 percent of what I paid went to the ticket reseller, rather than to Mr. Miranda and his investors.

In the past, Mr. Miranda has objected (Links to an external site.)Links to an external site. to the automated software that quickly buys as many tickets as it can, so they can be resold at a profit. But there is an easy way to put these resellers out of business: The theater can charge higher prices to begin with.

Such a move would surely increase the show’s profitability. From my standpoint as a theater consumer, that’s a good thing. Future talents like Mr. Miranda would find it easier to fund their innovative theater projects. And with more projects funded, those consumers who don’t buy “Hamilton” tickets — perhaps deterred by its uniquely high prices — would find a greater variety of other shows from which to choose.

1. GREGORY MANKIW is a professor of economics at Harvard.

An insurance company believes that 30% of drivers are careless. The probability that a careless driver will have an accident in any one-year period is 0.4. The probability that a careful driver will have an accident in any one-year period is 0.2. Find the probability that a driver will have an accident next year given that she has had an accident this year.

Water is being pumped into a leaky inverted conical tank at a rate of 10 m^3/h. The tank has a height of 9 m and the diameter at the top is 6 m. If the water level is rising at a rate of 0.2 m/h when the height of the water is 6 m, how fast is the water leaking out at that time?

A block of 28 kgkg  kg mass m climbs an incline plane which is making  66 degreesdegrees degrees with the horizontal with an initial velocity 32 m/sm/s .?

a)How long time later does the block return to its initial position If the static, kinetic friction constant is 0.2 and gravity is 9.8m/s²?

Ordinary Differential Equations, Tenenbaum & Pollard, Exercise 15A, Problem 12:

The CO2 content of the air in a 7200-cu-ft room is 0.2 percent. What volume of fresh air containing 0.05 percent CO2 must be pumped into the room each minute in order to reduce the CO2 content to 0.1 percent in 15 min?

True or false and explain

1. The paradox of thrift occurs when an increase in saving leads to an increase in investment spending.

2. Suppose that the economy of Kennyland has an MPC of 0.8and an MPIM of 0.2. Currently, real GDP is $1800 and full-employment GDP is $2000. In this example, an increase in government spending of $40 will eliminate the GDP gap.