Homework_3 From Textbook

ISYE 315 - Homework #3 Denise Valdez Chapter 7: Discussion Questions: 8 8. Why is it that reducing the number of moves, delays, and storages in a manufacturing pro- cess is a good thing? Can they be completely eliminated? This is best at a lean manufacturing strategy. It gets rid of the limiting factors to put all resources towards the max product potential. It would be impossible to completely eliminate them, although you can make predictions, there is innate capacities and movement/delays with any process. Objective Questions: 7, 12, 14 7. For each of the following variables, explain the differences (in general) as one moves from a workcenter to an assembly line environment. a. Throughput time (time to convert raw material into product) b. Capital/labor intensity c. Bottlenecks A) For converting material into a product, a work center would be best for low production, where an assembly line is needed for a faster production rate. Work centers also provide less strategic planning and can easily deliver custom end products. The assembly line would need much more specific workstations and instructions. Overall throughput time should decrease as a company moves from work center to assembly line. B) Workcenters are not as refined and don’t necessarily need much labor since production is usually low. As they move to an assembly line the labor will increase for each work station but since it goes faster, capital will also increase. C) With workcenters there is not a direct rate needed, therefore the workers can easily fall behind. Assembly lines for production at a certain rate and therefore should decrease bottlenecks. 12. A firm is selling two products—chairs and bar stools—each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000. a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and har stools? b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? 14. AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by add- ing a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $.60, but sales volume should jump to 50,000 units due to a higher-quality product. Should AudioCables buy the new equipment? Initial Profit = (Price - variable) * units — Fixed Cost = (1-.5) * 30000 — 14000 =$1000 Profit W/Machine = (1 - .5) * 50000 — 14000 — 6000

=$5000 Yes, they should invest in buying the machine as the profit turns out to be much larger with the increased volume of the units. Chapter 8: Discussion Questions: None Objective Questions: 2,13, 15 2. S. L. P. Craft would like your help in developing a layout for a new outpatient clinic to be built in California. From analysis of another recently built clinic, she obtains the data shown in the following diagram. This includes the number of trips made by patients between departments on a typical day (shown above the diagonal line) and the lettered weights (defined in Exhibit 8.8C) between departments, as specified by the new clinic’s physicians (below the diagonal). The new building will be 60 feet by 20 feet. (Assume distances are measured from the center of the departments and “straight line” to the other department centers.) a. Develop an interdepartmental flow graph that considers patient travel trips. b. Develop a “good™ relationship diagram using systematic layout planning. ¢. Choose either of the layouts obtained in (a) or (b) and sketch the departments to scale within the building. d. Will this layout be satisfactory to the nursing staff? Explain. | \ ] U=U=p bl (Rk Iu 1 U0y [I—I c) - ol Ul | d) Not ideal, the distance from the nurse station to reception for picking up patients is very far (which they probably must make the most often). The rest of the stations aren’t too far but x- rays are also not a good walk.