Knott’s Industries manufactures standard and superpremium backyard swing sets. Currently it has four identi-cal swing-set-making machines, which are operated 250days per year and 8 hours each day. A capacity cushionof 20 percent is desired. The following information is alsoknown:Standard ModelSuper PremiumModelAnnual Demand 20,000 10,000Standard Processing Time 7 min 20 minAverage Lot Size 50 30Standard Setup Time per Lot 30 min 45 mina. Does Knott’s have sufficient capacity to meet annualdemand?b. If Knott’s was able to reduce the setup time for the SuperPremium Model from 45 minutes to 30 minutes, wouldthere be enough current capacity to produce 20,000 unitsof each type of swing set?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Knott’s Industries manufactures standard and super
premium backyard swing sets. Currently it has four identi-
cal swing-set-making machines, which are operated 250
days per year and 8 hours each day. A capacity cushion
of 20 percent is desired. The following information is also
known:
Standard Model
Super Premium
Model
Annual Demand 20,000 10,000
Standard Processing Time 7 min 20 min
Average Lot Size 50 30
Standard Setup Time per Lot 30 min 45 min
a. Does Knott’s have sufficient capacity to meet annual
demand?
b. If Knott’s was able to reduce the setup time for the Super
Premium Model from 45 minutes to 30 minutes, would
there be enough current capacity to produce 20,000 units
of each type of swing set?
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