What is the takt time for a production system that operates one shift given the following information? total time per shift = 480 minutes Coffee breaks = 2 20 - minute breaks per shift Lunch break = 60 minutes daily demand = 360 units
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Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Problem 3: What is the takt time for a production system that
operates one shift given the following information?
total time per shift = 480 minutes
Coffee breaks = 2 20 - minute breaks per shift
Lunch break = 60 minutes
daily demand = 360 units
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- Josie’s Sports Accessories has 12 operators who work 9 hours a day (no breaks), 7 days a week. They manufacture headbands with a standard minute value of 1.35 minutes. The workers produce 4,450 headband a day. How long will it take them to complete an order for 5,000 headbands?A.J.’s Wildlife Emporium manufactures two unique birdfeed-ers (Deluxe and Super Duper) that are manufactured andassembled in up to three different workstations (X, Y, Z) us-ing a small batch process. Each of the products is producedaccording to the flowchart in Figure 5.14. Additionally, theflowchart indicates each product’s price, weekly demand,and processing times per unit. Batch setup times are neg-ligible. A.J. can make and sell up to the limit of its weeklydemand and there are no penalties for not being able to meetall of the demand. Each workstation is staffed by a workerwho is dedicated to work on that workstation alone and ispaid $16 per hour. The plant operates 40 hours per week,with no overtime. Overhead costs are $2,000 per week. Basedon the information provided, as well as the information con-tained in the flowchart, answer the following questions.a. Using the traditional method, which bases decisionssolely on a product’s contribution to profits and over-head, what is the…A.J.’s Wildlife Emporium manufactures two unique birdfeed-ers (Deluxe and Super Duper) that are manufactured andassembled in up to three different workstations (X, Y, Z) us-ing a small batch process. Each of the products is producedaccording to the flowchart in Figure 5.14. Additionally, theflowchart indicates each product’s price, weekly demand,and processing times per unit. Batch setup times are neg-ligible. A.J. can make and sell up to the limit of its weeklydemand and there are no penalties for not being able to meetall of the demand. Each workstation is staffed by a workerwho is dedicated to work on that workstation alone and ispaid $16 per hour. The plant operates 40 hours per week,with no overtime. Overhead costs are $2,000 per week. Basedon the information provided, as well as the information con-tained in the flowchart, answer the following questions. a. Using the traditional method, which bases decisionssolely on a product’s contribution to profits and over-head, what is the…
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- Old Pueblo Engineering Contractors creates six-month “rolling” schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work on overtime, which is limited to 30 percent of regular time; (3) do customers’ work early, which would costan additional $5 per hour per month; and (4) perform customers’ work late, which would cost an additional $10 per hour per month penalty, as provided by their contract. Old Pueblo has 25 engineers on its staff at an hourly rate of $30. The overtime rate is $45. Customers’ hourly requirements for the six months from January to June are January 5000 February 4000 March 6000 April 6000 May 5000 June 4000 Develop an aggregate plan using a spreadsheet. Assume 20 working days in each month. 12. Alan Industries is expanding its product line to include three…A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…There are four tasks performed in stations: mixing,, shaping, baking and packaging. Each cookie goes thru 1 of the 2 of shaping machines and 1 of the 3 baking ovens. Station 1 Mix 6.5 min/batch Station 2 shape 18 min/batch shape 10 min/batch Station 3 bake 17 min/batch bake 14 min/batch bake 35 min/batch Station 4 pack 9.8 min/batch 1. What is the Throughput time? 2. What is the Bottleneck time? 3. If factory operates 16 hours/day, 6 days/week, what is weekly capacity? 4. If upgrading some equipment to replace one of the existing operations. Which operation should be considered first?