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- Given: C = 100 + 0.75Yd (where Yd = Y-T)I = 120-600iG = 200T = 20 + 0.2YMs/P = 300Md/P = 50+0.5Y-600i consumptionProblem 1. During your first month as an employee at Greenfield Industries (a large drill-bitmanufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on aturning machine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previous employeewho could not finish the analysis, but she has given you the following information: An old turningmachine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit.The in-house technicians have given an estimate of $40,000 to modify this machine, and they assureyou that they will have the machine ready before the projected start date (although they havenever done any modifications of this type). It is hoped that the old turning machine will be able tomeet production requirements at full capacity. An outside company, McDonald Inc., made themachine seven years ago and can easily do the…Problem 2: Assume that a company has the following data for one of its manufacturing cells:Theoretical velocity: 40 units per hourProductive minutes available (per year): 1,200,000Annual conversion costs: $4,800,000Actual velocity: 30 units per hourRequired:1. Calculate the actual conversion cost per unit using actual cycle time and the standardcost per minute.2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standardcost per minute. What incentive exists for managers when cycle time costing is used?3. What if the actual velocity is 36 units per hour? What is the conversion cost perunit? What effect will this improvement have on delivery performance? Cheat Notes :Cycle time (time/units produced)velocity (units produced/time)
- Scenario planning is about:O.a) Preparing for scenarios that are highly impactful and/or uncertainO.b) Developing solutions to prevent scenarios from happeningO.c) Preparing only for those scenarios that are both impactful and uncertainO.d) ldentifying scenarios that are most likely to happenThe surface area of a certain plant that requires painting is 8 ,000 sq ft. Two kinds of paint are availablewhose brand are J and K .Paint J costs P1.40 per sq.ft but needs renewal at the end of every 4 years while paint K costsP1.8 per square ft. If money is worth 16% effective , how often should paint K be renewed so that it will be aseconomical as paint J? A) 5.6.years C) 3.9 yearsB) 4.2 years D) 5.3 yearsJohnson Controls spent more than $2.5 millionretrofitting a government complex and installing acomputerized energy-management system for theState of Massachusetts. As a result, the state’s energybill dropped from an average of $6 million a yearto $3.5 million. Moreover, both parties will benefitfrom the 10-year life of the contract. Johnson recovers half the money it saved in reduced utility costs(about $1.2 million a year over 10 years); Massachusetts has more money to spend on other things. Whatis the rate of return realized by Johnson Controls inthis energy-control system?
- DescriptionThe Islamabad Expressway is a major north-south expressway in Islamabad, CapitalTerritory, Pakistan. The expressway provides quick access between Islamabad andRawalpindi, connecting the national capital with the N-5 National Highway at TChowk. The total length of the expressway is 28 kilometers (17 mi), with lanes varyingfrom six to ten. In 2007, the Capital Development Authority proposed to build threenew interchanges on the highway at Karaal Chowk, Lehtrar Road and Dhok Kala KhanRoad to make it signal free and it were completed with as funds allocated. The expansion is still in progress.Statement of the ProblemThere is a traffic congestion from Gulberg green to T-Chowk due to a smaller numberof lanes or bottle neck problem. The number of lanes is reduced to 2 each side whichcause congestion.You are given a task to,I. Propose a economical solution to improve the travel time.II. Design the flexible pavement according to your proposed solution andtraffic count.III. Prepare a…You are the owner of a large data-services firm and are deciding on the purchase of a new hardwarecooling system that you expect will yield $233,300 in cost-savings per year for the next 15 years. Theinstallation of this cooling system will cost $3,000,000. Additionally, O&M expenditures for the collingsystem are expected to be $2,120 per year. use excel to solve 1. At face value, does this system seem profitable? By how much?2. Assume that your company uses a discount rate of 6%.a. What is the Net Present Value (NPV) of this project?b. How does the NPV of this project change as you assume a higher or lower discountrate? Why?A company that produces video equipment, including videocameras and televisions, is attempting to forecast what newproducts and product innovations might be technologicallyfeasible and that customers might demand 10 years into thefuture. Speculate on what type of qualitative methods itmight use to develop this type of forecast.
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