Product A Finish with Step 3 at workstation X (10 min) Product: A Step 1 at workstation W (12 min) Step 2 at workstation Z $11 $105/unit Price: Demand: 60 units/wk (12 min) Raw materials $5 Purchased part Product B Step 2 at workstation Y Step 1 Product: B Finish with Step 3 at workstation Z (10 min) $8 $95/unit Demand: 80 units/wk at workstation W Price: (9 min) (15 min) Raw materials $4 Purchased part Product C Step 2 at workstation W Finish with Step 3 at workstation Y Product: C Step 1 at workstation X $14 Price: $110/unit (10 min) (20 min) (5 min) Demand: 60 units/wk Raw materials $5 Purchased part
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.
Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown in Figure. Raw materials and purchased parts (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Which of the four workstations, W, X, Y, or Z, has the highest aggregate workload, and thus serves as the bottleneck for YPI?
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