Chapter 12, Problem 25P

a

Summary Introduction

Interpretation:

Number of days required to produce Product A, B and C.

Concept Introduction: Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by businesses to work efficiently and wastage must be reduced to the maximum level. Its main focus is to create customer satisfaction and eliminate implicit cost. Its principal is to smoothen the manufacturing process so that the operation of the business can be efficiently done. Moreover, the delegation of work is important rather than having a workload at the same team so that perfection can be attained.

Explanation of Solution

If the company is adopting traditional schedule, the number of days required to produce Product A are:

Number of days required to produce product A is calculated by dividing the total number of boxes to be produced in a year for Product A and the number of boxes that can be produced in a day.

  $\begin{array}{l}\text{Number}\text{of}\text{days}\text{required}\\ \text{to}\text{produce}\text{Product}\text{A}\text{=}\frac{\left(\begin{array}{l}\text{Total}\text{number}\text{of}\text{boxes}\text{for}\text{Product}\text{A}\\ \text{to}\text{be}\text{produced}\text{in}\text{a}\text{year}\end{array}\right)}{\text{Production}\text{per}\text{day}}\end{array}$

            = $\text{}\frac{\text{1,500}\text{boxes}}{\text{16}\text{boxes}}$ $\text{=}\text{}93.75days$

Hence, number of days required to produce Product A will be 93.75 days.

If the company is adopting traditional schedule, number of days required to produce Product B is as follows:

Number of days required to produce Product B is calculated by dividing the total number of boxes to be produced in a year for Product B and the number of boxes that can be produced in a day.

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}\text{B}\text{=}\frac{\left(\begin{array}{l}\text{Total}\text{numner}\text{of}\text{boxes}\text{for}\text{product}\text{b}\\ \text{to}\text{be}\text{produced}\text{in}\text{a}\text{year}\end{array}\right)}{\text{Production}\text{per}\text{day}}$

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}\text{B}\text{=}\frac{\text{2,000}}{\text{16}\text{boxes}}$

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}\text{B}\text{=}125days$

Hence, number of days required to produce Product B will be 125 days.

If the company is adopting traditional schedule, number of days required to produce product C are:

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}C\text{=}\frac{\left(\begin{array}{l}\text{Total}\text{numner}\text{of}\text{boxes}\text{for}\text{product}C\\ \text{to}\text{be}\text{produced}\text{in}\text{a}\text{year}\end{array}\right)}{\text{Production}\text{per}\text{day}}$

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}C\text{=}\frac{\text{500}}{\text{16}\text{boxes}}$

  $\text{Number}\text{of}\text{days}\text{required}\text{to}\text{produce}\text{Product}C\text{=}31.25days$

b

Summary Introduction

Interpretation:

Number of each product produced when mixed-model is adopted.

Concept Introduction: Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by businesses to work efficiently and wastage must be reduced to the maximum level. Its main focus is to create customer satisfaction and eliminate implicit cost. Its principal is to smoothen the manufacturing process so that the operation of the business can be efficiently done. Moreover, the delegation of work is important rather than having a workload at the same team so that perfection can be attained.

Explanation of Solution

Daily production of Product A when mixed-schedule model is adopted.

Number of product A that should be produced in a day can be computed by multiplying the daily number of production with the ratio between total numbers of Product A required to be produced in a year with total production in a year. Total production for a year will include Product A, Product B and Product C to be produced in a year. Hence, the total production in a year will be 4000 boxes).

  $\text{Daily}\text{production}\text{of}\text{Product}\text{A}\text{=}\text{Daily}\text{production×}\frac{\left(\begin{array}{l}\text{Number}\text{of}\text{Product}\text{A}\text{to}\text{be}\\ \text{produced}\text{in}\text{a}\text{year}\end{array}\right)}{\text{Total}\text{production}\text{in}\text{a}\text{year}}$

  $\begin{array}{c}\text{Daily}\text{production}\text{of}\text{Product}\text{A}\text{=}\text{16}\text{boxes×}\frac{\text{1,500}\text{boxes}}{\text{4,000}\text{boxes}}\\ \text{=}\text{16}\text{boxes×}\text{0}\text{.375}\text{boxes}\\ \text{=}\text{6}\text{boxes}\end{array}$

Hence, the daily production of Product A will be 6 boxes.

Daily production of Product B when mixed-schedule model is adopted.

Number of product B that should be produced in a day can be computed by multiplying the daily number of production with the ratio between total numbers of Product B required to be produced in a year with total production in a year. Total production for a year will include Product A, Product B and Product C to be produced in a year. Hence, the total production in a year will be 4000 boxes).

  $\begin{array}{c}\text{Daily}\text{production}\text{of}\text{Product}\text{A}\text{=}\text{16}\text{boxes×}\frac{\text{2,000}\text{boxes}}{\text{4,000}\text{boxes}}\\ \text{=}\text{16}\text{boxes×}\text{0}\text{.5}\text{boxes}\\ \text{=}8\text{boxes}\end{array}$

Hence, the daily production of Product A will be 8 boxes.

Daily production of Product C when mixed-schedule model is adopted.

Number of product C that should be produced in a day can be computed by multiplying the daily number of production with the ratio between total numbers of Product C required to be produced in a year with total production in a year. Total production for a year will include Product A, Product B and Product C to be produced in a year. Hence, the total production in a year will be 4000 boxes).

  $\begin{array}{c}\text{Daily}\text{production}\text{of}\text{Product}\text{A}\text{=}\text{16}\text{boxes×}\frac{\text{500}\text{boxes}}{\text{4,000}\text{boxes}}\\ \text{=}\text{16}\text{boxes×}\text{0}\text{.125}\text{boxes}\\ \text{=}2\text{boxes}\end{array}$

Hence, the daily production of Product C will be 2 boxes.

c

Summary Introduction

Interpretation:

Sequence of production of products during a day.

Concept Introduction: Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by businesses to work efficiently and wastage must be reduced to the maximum level. Its main focus is to create customer satisfaction and eliminate implicit cost. Its principal is to smoothen the manufacturing process so that the operation of the business can be efficiently done. Moreover, the delegation of work is important rather than having a workload at the same team so that perfection can be attained.

Explanation of Solution

Company B can adopt the following order for daily mix to complete the production:

Company B has to produce 6 Boxes of Product A, 8 boxes of product B and 2 boxes of product C in a day. Hence, company B can produce the product in a following manner.

Product B, Product A, Product B, Product A, Product B, Product A, Product B, Product C, Product B, Product A, Product B, Product A, Product B, Product A, Product B, Product C.