Question

Problems 1-10 Now you have another piece of information - Table 1. It was either obtained by measuring times to complete each operation, or based on experience with similar operations. For simplicity, setup and cycle times are assumed the same for both 1 and 10.000 parts. To simplify calculations, and without loss of generality, the following is assumed: - The material cost per one part is assumed to be the same, so we neglect it for comparison purposes - Tool handling time (changing worn out tools) is neglected - All the operations are done sequentially. In other words, while one machine is working, others are idling: one part is made at a time with operations 10.20. and 30 done in a sequence, then another part is made, and so on. That is different from parallel operation, when all the machines work in the same time. 1) Using information from Table 1. calculate the total setup time [hours/batch). Enter the numeric value only three decimals): 1617 2) In case one (1) part is made, calculate the setup time per one part [hours/part) Enter the numerie value only three decimals): unha 3) In case ten thousand (10,000) parts are made, calculate the setup time per one part [hours part Enter the numeric value only, with 5 decimal places: 152. W 4) Using information from Table 1. calculate the total cycle time, i.e. time to make one part Thours/part). Note that the sequential operation is assumed. Enter the numeric value only three decimals): 0.1D porn 5) In case one (1) part is made, calculate the total time per one part [hours/part). Enter the numeric value only (three decimals): 6) In case ten thousand (10,000) parts are made, calculate the total time per one part [hours/part] Enter the numeric value only three decimals): 7) Reminder: machine shop costs 75 $/hour (sitting idle, doing setup, or machining), and the material cost is neglected (ie, included in the "flat rate" 75 S/hour). In case one (1) part is made, calculate the cost to make one part (Spart). Enter the numeric value only two decimals): 8) Reminder: machine shop costs 75 S/hour (whether sitting idle, doing setup, or machining), and the material cost is neglected le.included in the "flat rate" of 75 $/hour). In case thousand (1,000) parts are made, calculate the cost to make one parts/part). Enter the numeric value only (two decimals): 9) Assuming that all the operations are done sequentially, estimate how long it will take to make 10,000 parts [hours). Enter the numeric value only: 10) In which case it is cheaper to make one part, when the batch size is I or 10,000, and what makes the difference? a) The costs per one part are roughly the same. It costs 1,000 times more to make 10.000 parts so, on average, there is no difference. b) The cost per one part is higher if 10,000 parts are made because it costs much more to make 10.000 parts.

Answer 1

Q.1 : Setup time (hours/batch) = 1.417 Hour ((5+20+60)/60)

Q.2 : Setup time for 1 part when 1 part made in batch = 1.417 Hour ((5+20+60)/60)

Q.3 : Set up time for 1 part when 10000 part made in batch = 0.00014 Hour (1.417/10000)

Q.4 : Total Cycle Time = 0.108 Hour ((1+2.5+3)/60)

Q.5 : Total time per one part when 1 part is made = 1.525 Hour (Q2 Ans + Q.4 Ans)

Q.6 : Total time per one part when 10000 part is made= 0.108 Hour (1.417+(6.5*10000/60))/10000

Q.7 : Cost for one part to make -->Total time per one part when 1 part is made (Q.5) * 75 = $114.375 (1.525*75)

Q.8 : Cost to make one part when 1000 parts are made : Total Hours =  109.750 (1.417+6.5*1000/60)

Total Cost = 8231.27 (109.7503*75)

Cost for One part = 8.23 (8231.27/1000)

Q.9 : How long it take to make 10000 part : 1084.75 Hours (1.417+6.5*10000/60)

Q.10 : Option C is correct answer --> The cost per one part is lower when 10000 parts are made. in this case, the savings are made on account of set up time, which is much lower when averaged per one part