a. Determine the capacity of this process. b. Which action would yield the greatest increase in process capacity: (1) Increase the capacity of Operation 1 by 15%; (2) Increase the capacity of Operation 2 by 10%; and (3) Increase the capacity of Operation 3 by 10%.
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- The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.a. Determine the capacity of this process. b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 15 percent; (2) increase the capacity of Operation 2 by 15 percent; or (3) increase the capacity of Operation 3 by 15 percent?Problem 5-14 (Algo) The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation. Operation 1 14/hr. Capacity 15/hr. Action Operation 2 a. Determine the capacity of this process. 10/hr. per hour Operation 3 17/hr. Operation 4 b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 25 percent; (2) increase the capacity of Operation 2 by 30 percent; or (3) increase the capacity of Operation 3 by 50 percent?The resources (workers) and processing times (mins per unit) for 3 activities in a production system are shown below. Resources: Processing time: Activity 1 1- 2 worker A 12 min/unit Activity 2 1 worker B 5 min/unit Activity 3 4 worker C 15 min/unit a) What is the capacity (throughput) of each activity and the complete production system? Comment on how Activity A impacts on the entire system. b) What is the average WIP level when the system is at full capacity (apply Littles Law)?
- The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation. 13/hr. 12/hr. 15/hr. 16/hr. Operation 1 Operation 2 Operation 3 Operation 4 a. Determine the capacity of this process. Capacity 15 per hour b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 10 percent; (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 12 percent? increase the capacity of Operation 2 by 10 percent ActionThe Build-Em-Fast Company has agreed to supply its best customer with three widgets during each of the next 3 weeks, even though producing them will require some overtime work. The relevant production data are as follows: Week Maximum Production, Regular Time Maximum Production, Overtime Production Cost per Unit, Regular Time 1 2 2 $300 2 3 2 $500 3 1 2 $400 The cost per unit produced with overtime for each week is $100 more than for regular time. The cost of storage is $50 per unit for each week it is stored. There is already an inventory of two widgets on hand currently, but the company does not want to retain any widgets in inventory after the 3 weeks. Management wants to know how many units should be produced in each week to minimize the total cost of meeting the delivery schedule. Formulate this problem as a transportation problem by constructing the appropriate parameter table.A certain single station automated system will be used to produce three different components (A, B & C). The sales forecast for these components are A 26500, B 32500 and C 45000 units per year. Production rates for the three products are 12, 10 and 5 pc/hr and scrap rates are 22%, 16% and 17%. The plant will operate 45 weeks per year, 6 shifts per week and 8 hr per shift. It is anticipated that production machines of this type will be down for repair on average 5% of the time. How many machines will be required to meet the demand?
- Ola Ltd, which uses a job costing system, had two jobs in process at the start of the year: Job L1 ($68,000) andJob L2 ($30,000). The following information is available:i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead andmachine activity for the year were anticipated to be $1,000,000 and 25,000 hours, respectively.ii) The company worked on three jobs during the first quarter (i.e. from 1 January to 31 March). Directmaterials used, direct labour incurred and machine hours consumed were as shown in the following table: Job numbers Direct material Direct labour Machine hoursL1 $15,000 $30,000 900L2 - 33,000 1,600L3 45,000 65,000 2,000HI5017 Managerial AccountingPage 2 of 22iii) Manufacturing overhead incurred during the first quarter was $215,000.iv) Ola Ltd completed Job L1 and Job L2 during the first quarter. Job L2 was sold on credit, producing a profitof $30,000 for the company.Required:a) Calculate the company’s predetermined overhead…Manufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead)2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to laborand 15% as to overhead due to internal failure) 400 Cost data for the month:In process beginning:Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs:Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is?The cost of spoilage charged to revenue is?Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,200 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,400 new students to take business courses. What is the utilization rate for Southeastern? (enter your response as a percentage rounded to one decimal place). 63.6% 68.2% 90% 92.5% 93.3%
- Macon Controls produces three different types of controlunits used to protect industrial equipment from overheating Each of these units must be processed by a machine thatMacon considers to be their process bottleneck. The plantoperates on two 8-hour shifts, 5 days per week, 52 weeks peryear. Table 4.2 provides the time standards at the bottleneck,lot sizes, and demand forecasts for the three units. Becauseof demand uncertainties, the operations manager obtainedthree demand forecasts (pessimistic, expected, and optimis-tic). The manager believes that a 20 percent capacity cushionis best.a. How many machines are required to meet minimum(pessimistic) demand, expected demand, and maximum(optimistic) demand?b. How many machines are required if the operations man-ager decides to double lot sizes? c. If the operations manager has three machines and be-lieves that the plant can reduce setup time by 20 percentthrough process improvement initiatives, does that planthave adequate capacity to…st K Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,420 new students to take business courses. The utilization rate for Southeastern = 71% (enter your response as a percentage rounded to one decimal place). The efficiency rate for Southeastern % (enter your response as a percentage rounded to one decimal place). elpIdentify the process's existing capacity and determining whether the process's present capacity cushion is adequate ?