-100 units enter process A. Five are scrapped, 6 are reworked, and a total of 96 are produced. 96 units enter process B. Ten are scrapped, 7 are reworked, and a total of 87 are produced. 87 units enter process C. Five are scrapped, 12 are reworked, and a total of 80 are produced. What is the Rolled Throughput Yield for the process chain? (Enter your answer as a decimal rounded to THREE decimal places.)
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- . Baskin-Robbins (BR) has a line that produces half-gallon ice cream packs. All the stations inthis line are single-machine and the line is nearly balanced. Suppose that BR hired you as theproduction manager to evaluate the performance of the line. You have estimated that thebottleneck rate to be 2,337 packs per 19-hour day and the raw process time to be 30 minutes.The actual production rate of this line is 1,900 packs per day with the average cycle time of 2.9hours.(a) Estimate the average WIP for this line:WIP: ______________(b) Compare the performance of this line to the minimum expected performance:THMEP : ______________ CT MEP: ______________Construct a process flowchart of a process with which youare familiar. Identify bottlenecks, potential failure points,and opportunities for improvement.1- A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units, and $19 per unit for additional units. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
- Mikey W. Smitty is confident that demand for his “WesternRap” CD will substantially exceed the break-even point computed in Problem 6-3. So, Mikey is contemplating hav-ing his CD cut at a classier (and pricier) studio. The cost to record the CD would rise to $9000. However, since thisnew studio works with very high volume, production costswould fall to $2 per CD.a. What is the breakeven point for this new process?b. Compare this process to the process proposed in theprevious problem. For what volume of demand shouldMikey choose the classier studio?by matching process capabilities with product requirements, we get the most efficient process possible? Explain?As operations manager of Holz Furniture, youmust make a decision about adding a line of rustic furniture. Indiscussing the possibilities with your sales manager, Steve Gilbert,you decide that there will definitely be a market and that your firmshould enter that market. However, because rustic furniture has adifferent finish than your standard offering, you decide you need another process line. There is no doubt in your mind about the deci-sion, and you are sure that you should have a second process. But you do question how large to make it. A large process line is going to cost $400,000; a small process line will cost $300,000. The ques-tion, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Tim Ireland of Ireland MarketResearch, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of profit from sales aslarge as $600,000 and a one-out-of-three chance as low as $300,000.With a large process line,…
- H3. Weber Optical, an eyeglass manufacturer, pays employees an incentive based on the average amount of work completed per processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Weber Optical pa many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate? O 1. rising differential 2. straight commission plan 3. straight piecework plan 4. standard hour plan Show proper step by step calculationSelect the right answer. 1. The crossover point between two processes A and B can be stated as - [ ] a. variable costs of process A = Variable costs of process B - [ ] B. Fixed costs of process A = Fixed costs of process B - [ ] Variable costs of process A = Fixed costs of process B - [ ] total costs of process A = total costs of Process B 2. What are the two dimensions of the service process matrix - [ ] Degree of customization and degree of capital - [ ] Degree of customization and degree of labor - [ ] Degree of volume and degree of variety d - [ ] All of the above 3. Which of the following strategies could be used when demand exceeds the capacity. - [ ] Stimulate the market through price reductions or aggressive marketing - [ ] Product changes. - [ ] decreasing prices of products - [ ] Discouraging marginally profitable business 4. Capacity decision determines which of the following? a. whether demand will be satisfied or whether facilities will be…Samoset Fans, Inc. manufacturers its fan blades in-house. The owner, Betty Dice, doesn't outsource any fan parts except fan motors — all other fans parts are made in-house. Their current process and its equipment are getting old. Maintenance and repair costs are increasing at eleven percent per year. She and her company team are evaluating two new processes. The first process has an annual fixed cost of $760,000 and a variable cost of $19 per fan blade. The second process is more automated and requires an annual fixed cost of $1,100,000 and a variable cost of $11 per fan blade. The internal transfer cost of a fan blade is $24, and this helps the firm determine the total manufactured cost of a completed fan. Use the Excel template Break-Even in MindTap to answer the following questions: What is the break-even quantity between these two processes? Round your answer to the nearest whole number. fan blades If predicted demand for next year is 160,000 blades, what process do you…
- Samoset Fans, Inc. manufacturers its fan blades in-house. The owner, Betty Dice, doesn't outsource any fan parts except fan motors — all other fans parts are made in-house. Their current process and its equipment are getting old. Maintenance and repair costs are increasing at seven percent per year. She and her company team are evaluating two new processes. The first process has an annual fixed cost of $730,000 and a variable cost of $12 per fan blade. The second process is more automated and requires an annual fixed cost of $1,050,000 and a variable cost of $10 per fan blade. The internal transfer cost of a fan blade is $22, and this helps the firm determine the total manufactured cost of a completed fan. Use the Excel template Break-Even in MindTap to answer the following questions: What is the break-even quantity between these two processes? Round your answer to the nearest whole number. fan blades If predicted demand for next year is 110,000 blades, what process do you…Which important process strategy decisions have been made and what effect do they have on operations?A manager is trying to decide whether to purchase a certain part or to have it produced internally.Internal production could use either of two processes. One would entail a variable cost of $17 perunit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unitand an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A hasa price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of$21 per unit for the first 1,000 units, and $19 per unit for additional units.a. If the manager anticipates an annual volume of 10,000 units, which alternative would be bestfrom a cost standpoint? For 20,000 units, which alternative would be best?