a. What is the process capacity in units per hour with a batch size of 100 wafers? b. For what batch size is step 3 (etching) the bottleneck? c. Suppose JCL Inc. came up with a new technology that eliminated the setup time for step 1 (deposition), but increased the processing time to 0.45 minute/unit. What would be the batch size you would choose so as to maximize the overall capacity of the pro-cess?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
(JCL Inc.) JCL Inc. is a major chip manufacturing firm that sells its products to com- puter manufacturers like Dell, HP, and others. In simplified terms, chip making at JCL Inc. involves three basic operations: depositing, patterning, and etching. • Depositing: Using chemical vapor deposition (CVD) technology, an insulating mate- rial is deposited on the wafer surface, forming a thin layer of solid material on the chip. • Patterning: Photolithography projects a microscopic circuit pattern on the wafer sur- face, which has a light-sensitive chemical like the emulsion on photographic film. It is repeated many times as each layer of the chip is built. Etching: Etching removes selected material from the chip surface to create the device structures. The following table lists the required processing times and setup times at each of the steps. Assume that the unit of production is a wafer, from which individual chips are cut at a later stage. Note: A setup can only begin once the batch has arrived at the machine.
a. What is the process capacity in units per hour with a batch size of 100 wafers?
b. For what batch size is step 3 (etching) the bottleneck?
c. Suppose JCL Inc. came up with a new technology that eliminated the setup time for step 1 (deposition), but increased the processing time to 0.45 minute/unit. What would be the batch size you would choose so as to maximize the overall capacity of the pro-cess?
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