DeGarmo's Materials and Processes in Manufacturing
DeGarmo's Materials and Processes in Manufacturing
12th Edition
ISBN: 9781118987674
Author: J. T. Black, Ronald A. Kohser
Publisher: WILEY
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Chapter 40, Problem 7P

A part has two holes located for drilling by manual layout. If a drill jig is used. 0.5 min in processing time is saved for each piece. The labor rate is $9/hr. The overhead rate on the labor saved is 100%. Setup time is no more with than without the jig. The combined rate for interest, insurance, taxes, and maintenance is 35%. The cost of the jig is $500.

  1. How many pieces must be made in one lot to make the jig worthwhile?
  2. How many pieces must be made on the jig in one lot each month to earn the cost of the jig in 2 years?

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