Donner Company Case Solution Essay

We assumed that the cost of graphite which according to exhibit 8 has been growing slower year on year would grow steadily at 4% and that power costs would grow at 12% per year up to 1989. We also assumed that the benefits of laminate technology will only be felt starting in 1981. With 1980 as the base year, the NPV calculation was done as at December, 1980 and we assumed that the cash injection of $2.5million dollars would occur instantaneously in December 1980. Using a median assumption of power cost savings of 17.5%, we arrive at an NPV of $12.865million for the laminate investment. The applicable range and full calculations are presented below.

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

The feet driven per hour using the pad (contractors are paid by the job, therefore the more feet per hour the better)

Setup for the machine is done for one batch of items. If we look at the the batch size of valves, it will be 375 units(=7500 units/ 20 production runs)

A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be under the warranty at an average cost of $150 each. During November the company sold 30,000 computers and 400 computers were serviced

with no work stoppage · · Increase capacity by 44,800 wafers Have control of wafer manufactured

Drilled and tapped based were forwarded to assembly by forklift truck, in wire-bound pallets holding bout 400 bases. This requires five forklift trips to move on "packet-release" quantity to assembly. (See question 1)

For entry level and multi featured assembly we always matched assembly to orders because we did not want to assembly more unless demand is high in a specific year.

The expansion plan calls for a $50 million investment in production capacity to accommodate the future demand of the retailer. Considering that all of HPL’s four plants are already operating at

* The vehicles in the factory can’t be built efficiently by the operators as the correct numbers of tools are unavailable.

The assembly line needs to produce 6 units per hour and there is room for only four workstations. The tasks and the order in which they must be performed are shown in the following table. Tasks cannot be split, and it would be too expensive to duplicate any task.

Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.

Since the current assembly line layout should achieving 100% line efficiency when running at maximum capacity of 215 units. Thus, to operate at target 300 units/day, the current assembly line needs to redesign.

What are the main duties of each of the positions that comprise Abernethy and Chapman’s engagement team?

In case of tools handling, the tools will be send to the respective assembly stations in the form of kits and the tool which requires for a particular job will