Question 4 MGM12026 Production and Operations Management semester il 2024 A company operates a manufacturing plant that produces two products, A and B. The plant has the following capacity data: . . Design Capacity: 15,000 machine hours per month Effective Capacity: 12,000 machine hours per month Actual Output (Utilized Capacity): 10,000 machine hours per month Additionally, the plant produces Product A and Product B, with the following production data: Product Demand (Units) Processing Time Contribution Margin ($ (hours per unit) per unit) A 3,000 2.5 40 B 4,000 1.5 30 a. Calculate the plant's i. Capacity Utilization [3 marks] ii. Effective Capacity Utilization [3 marks] iii. Efficiency. Interpret the results. [3 marks] b. Compute the total machine hours required to meet full demand for both products. [5 marks] c. Determine whether the plant has sufficient capacity to meet full demand. If not, calculate the shortfall in machine hours. [3 marks] d. Using the contribution margin per unit of capacity, determine the optimal production plan under constrained capacity. [8 marks] [TOTAL 25 MARKS] Question 3 i. Using the Center of Gravity method, determine the optimal location (X, Y) for the new distribution center. [7 marks] [TOTAL 25 MARKS] Time (sec.) Power steering assembly firm wants to set up an assembly line which must have an output of 60 units per hour. The work elements, task times and their precedence relationships are shown in Table 2: Table 1 Work Element Immediate Predecessor(s) A 30 NONE B 26 A C 50 A D 44 B E 10 с F 20 с G 15 D.E H 30 E,G,F Required: a. Draw the precedence diagram showing the task precedence and their times b. Determine the cycle time associated with the rate of output required. [3 marks] c. What is the theoretical number of work stations required to satisfy this output rate? [3 marks] [4 marks] d. Allocate the tasks to work stations taking into consideration the precedence requirements and using the LOT rule to break ties between feasible tasks. e. Calculate the total idle time [8 marks] [3 marks] f. What is the efficiency of the line and the idle time percentage? [4 marks] [TOTAL 25 MARKS]