For the engineering activity, current practical capacity is defined by the following requirements: 6,000 engineering hours for each product group that has been on the market or in development for 5 years or less, and 2,400 hours per product group of more than 5 years. Four product groups have less than 5 years' experience, and 10 product groups have more. There are 24 engineers, each paid a salary of P60,000. Each engineer can provide 2,000 hours of service per year. The actual engineering usage was 46,000 hours. The standard is 58% of current practical activity capacity. Case 1: Calculate the (1) activity volume and (2) unused capacity variances for the engineering activity Case 2: Suppose the operational managers have selected some improvement measures that promise to reduce non-value-added activity usage by 40% in the following year. Using the targeted reduction, establish kaizen standards for engineering, expressed both in physical and financial measures

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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PROBLEM 1
For the engineering activity, current practical capacity is defined by the following requirements: 6,000 engineering hours for each
product group that has been on the market or in development for 5 years or less, and 2,400 hours per product group of more than
5 years. Four product groups have less than 5 years' experience, and 10 product groups have more. There are 24 engineers, each
paid a salary of P60,000. Each engineer can provide 2,000 hours of service per year. The actual engineering usage was 46,000
hours. The standard is 58% of current practical activity capacity.
Case 1:
Calculate the (1) activity volume and (2) unused capacity variances for the engineering activity
Case 2:
Suppose the operational managers have selected some improvement measures that promise to reduce non-value-added activity
usage by 40% in the following year. Using the targeted reduction, establish kaizen standards for engineering, expressed both in
physical and financial measures
Transcribed Image Text:PROBLEM 1 For the engineering activity, current practical capacity is defined by the following requirements: 6,000 engineering hours for each product group that has been on the market or in development for 5 years or less, and 2,400 hours per product group of more than 5 years. Four product groups have less than 5 years' experience, and 10 product groups have more. There are 24 engineers, each paid a salary of P60,000. Each engineer can provide 2,000 hours of service per year. The actual engineering usage was 46,000 hours. The standard is 58% of current practical activity capacity. Case 1: Calculate the (1) activity volume and (2) unused capacity variances for the engineering activity Case 2: Suppose the operational managers have selected some improvement measures that promise to reduce non-value-added activity usage by 40% in the following year. Using the targeted reduction, establish kaizen standards for engineering, expressed both in physical and financial measures
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