Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $9 million and unit variable costs of $5 per pair. Ace is considering a switch from manual labor to an automated process. New equipment would cost an additional $4 million per year while lowering variable costs by $3 per shoe repair kit. How many kits would Ace have to sell at $17 per pair to make $2 million in profits in the next year with the automated process?

Q: Based on the information above, Develop a SCM performance measurement design for OAK Leather using a…

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Q: What is each operator-machine combination's process capability?

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Q: Identify the four basic process strategies, and describe them by giving an example.

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Q: Describe the importance of the matching process capabilities with product requirements?

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Q: Which is the most difficult to design, the production of a product or a service? Why?

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Q: Review the Service Process Matrix (SPM) below. Identify the cell (Cell a, b, c, or d) that best fits…

A: The Service Process Matrix (SPM) is a useful tool for analysing and categorising service processes…

Q: One of our students who had worked for Taco Bell related a story of how his particular store…

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Q: How are Cp and Cpk calculated and process capabilities explained?

A: Process capability is defined as the spread of any process. If the standard deviation of any process…

Q: How are Cp and Cpk calculated and process capabilities explained?

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Q: There are a range of factors that can cause an organization to design or redesign a product or…

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Q: What role does scalability play in performance measurements, and why is it significant for business…

A: Business refers to organized economic activities in which goods or services are produced, bought,…

Q: Why do we distinguish between service and manufacturing processes?

A: Manufacturing operations: Manufacturing operations include activities right from the procurement of…

Q: Explain the principles of a process design breifly?

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Q: Lincoln Electric Inc. has a direct manufacturing cost of $147/welding unit and defective units can…

A: yield = output/input yield = 100% - scrap rate scrap rate = % of non workable X (total…

Lean Production

The word lean refers to the “slim “that is used in manufacturing for the systematic designing that focuses on minimizing the waste in the manufacturing or production with the constant productivity of the operation. Lean manufacturing was rooted from Toyota Production system a Japanese manufacturing company that works on the approach of minimizing the non-value-added activities and making the production lean.