Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 5, Problem 4P
Summary Introduction
Interpretation:For manufacturing 2 types of products, 3 workstations are required, the highest aggregate workload within 3 workstations needs to be determined.
Concept Introduction: The performance of work can be detected through workload. Any changes can be effected its performance. Aggregate workload is required for production environment.
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Table 1 illustrates a typical traditional procurement process. This process is for relatively low- value items that do not need authorisation by a senior manager. Develop the new e-procurement process in table 2.
A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the flowchart in Figure. Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible.A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. a. Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the…
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Chapter 5 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Ch. 5 - Take a process that you encounter on a daily...Ch. 5 - Prob. 2DQCh. 5 - How could the efficiency of the redesigned process...Ch. 5 - Bill’s Barbershop has two barbers available to...Ch. 5 - Melissa’s Photo Studio offers both individual...Ch. 5 - Figure 5.11 details the process flow for two types...Ch. 5 - Prob. 4PCh. 5 - Super Fun Industries manufactures four top-selling...Ch. 5 - Prob. 6PCh. 5 - Yost-Perry Industries (YPI) manufactures a mix of...
Ch. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - A.J.’s Wildlife Emporium manufactures two unique...Ch. 5 - Cooper River Glass Works (RGW) produces four...Ch. 5 - Quick Stop Pharmacy is a small family-owned,...Ch. 5 - Use the longest work element rule to balance the...Ch. 5 - Johnson Cogs wants to set up a line to serve 60...Ch. 5 - Refer back to Problem 16. Suppose that in addition...Ch. 5 - To meet holiday demand, Penny’s Pie Shop...Ch. 5 - A paced assembly line has been devised to...Ch. 5 - Prob. 20PCh. 5 - Greg Davis, a business major at the University of...Ch. 5 - Prob. 1VCCh. 5 - Which boarding scenario among the different ones...Ch. 5 - How should Southwest evaluate the gate boarding...Ch. 5 - How will Southwest know that the bottleneck had...
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- What does process planning entail? How would process planning differ for batch and continuous processes?arrow_forwardTuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?arrow_forwardManufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead)2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to laborand 15% as to overhead due to internal failure) 400 Cost data for the month:In process beginning:Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs:Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is?The cost of spoilage charged to revenue is?arrow_forward
- Which core process includes the activities required to produce and deliver the service or product to the external customer? A. supplier relationship process B. order fulfillment process C. customer relationship process D. new service/product development processarrow_forward1. Define and discuss the advantages and disadvantages the following Process Strategies: Make-to-Stock Make-to-Order Assemble-to-Orderarrow_forwardWhat does process planning entail? How would processplanning differ for batch and continuous processesarrow_forward
- Discuss the importance of flowsheet in process design and management.arrow_forwardCanine Kernels Company (CKC) manufactures two differenttypes of dog chew toys (A and B, sold in 1,000-count boxes)that are manufactured and assembled on three differentworkstations (W, X, and Y) using a small-batch process (seeFigure 5.12). Batch setup times are negligible. The flowchartdenotes the path each product follows through the manu-facturing process, and each product’s price, demand perweek, and processing times per unit are indicated as well.Purchased parts and raw materials consumed during pro-duction are represented by inverted triangles. CKC can makeand sell up to the limit of its demand per week; no penaltiesare incurred for not being able to meet all the demand. Eachworkstation is staffed by a worker who is dedicated to workon that workstation alone, and is paid $6 per hour. Totallabor costs per week are fixed. Variable overhead costs are$3,500/week. The plant operates one 8-hour shift per day, or40 hours/week. Which of the three workstations, W, X, or Y,has the highest…arrow_forwardThe following diagram shows the flow process. Raw material cost, and machine processing time for three products: A, B, and C. There are three machines (W, X and Y) used in the production of these products; the times shown are in required minutes of production per unit. Raw material costs are shown in cost per unit of product. The market will take all that can be produced. Selling price A B C $ 55 $60 $ 75 $ 10----Y (2 min) $10---Y (5 min) $10---X (4 min) $ 15---W (3 min) $20---X (5 min) $15---Y (4 min) $ 15---X (2 min) $15—W (6 min) $ 30—W (6 min) Assuming that sales personnel are paid on a commission basis, which product should sell? A, B or C? On the basis of maximizing gross profits per unit, which product should be sold? A, B, or C 3.To maximize total profit for the firm, which…arrow_forward
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