Tribal Systems, Inc., is opening a new plant and has yet to decide on the type of process to employ. A labor-intensive process would cost $10,000 for tools and equipment and $14 for labor and materials per item produced. A more automated
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- Heizer and Render advises that when analyzing and designing processes to transform resources into goods, the followingquestions should be asked:- Is the process designed to achieve competitive advantage in terms of differentiation, response or low cost?- Does the process eliminate steps that do not add value?- Does the process maximize customer value as perceived by the customer?- Will the process win orders?A Time-Function Map is similar to a flow process chart, but with time added to the horizontal axis. With time-function mapping,notes indicate the activities and arrows indicate the flow direction, with time on the horizontal axis. 1. Choose a process within your organization and construct a Baseline Time-Function Maparrow_forwardHeizer and Render advises that when analyzing and designing processes to transform resources into goods, the followingquestions should be asked:- Is the process designed to achieve competitive advantage in terms of differentiation, response or low cost?- Does the process eliminate steps that do not add value?- Does the process maximize customer value as perceived by the customer?- Will the process win orders?A Time-Function Map is similar to a flow process chart, but with time added to the horizontal axis. With time-function mapping,notes indicate the activities and arrows indicate the flow direction, with time on the horizontal axis.arrow_forwardWhat processes at manufacturing firms are really service processes that involve considerable customer contact? Can customer contact be high, even if the process only has internal customers?arrow_forward
- Smith Productions manufactures its hand-tools in-house. Maintenance and repair costs are increasing at ten percent per year. The company is evaluating two new processes. The first process has an annual fixed cost of $500,000 and a variable cost of $12 per part. The second process is more automated and requires an annual fixed cost of $700,000 and a variable cost of $11 per part. Use the Excel template Break-Even in MindTap to answer the following question: What is the break-even quantity between these two processes? (Hint) Using Equations (C.1) and (C.7) in Supplement C by using goal seek (see Pgs. 629-630)arrow_forwardGive 4 real-life functions. Determine its input, process, and output just like on the sample in the picture.arrow_forwardThe one in bold, I already sold. Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $340,000 of fixed cost and add $40 of variable cost to each casting Spartan produces. The second process has fixed costs of $100,000 and adds $70 of variable cost per casting. a. What is the break-even quantity beyond which the first process is more attractive? The break-even quantity is 8000 castings. b. What is the difference in total cost if the quantity produced is 5,000? The total cost of process 1 is greater. Find the difference in total cost?arrow_forward
- Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand will sell for $120 per unit.a) Which process type will maximize the annual profit from producing the Maxistand?b) What is the value of this annual profit?arrow_forwardExplain how to decide whether a process is capable of delivering a service or product that meets the requirements.arrow_forwardWrite through company examples how a process is A) efficient but not effective B) effective but not efficientarrow_forward
- When adapting a Process Model, what considerations must be made?arrow_forwardJoliana is a human resources professional with Odd Objects Company. Her primary responsibility is during the fall is to prepare the customer care center for their seasonal rush. She is tasked with a goal of filling 100 customer support positions by Halloween. She screens candidates and forwards potential fits to the manager of customer care. Jollana is playing a key role in which of the following processes? Multiple Choice human capital shadowing recruiting mentoring inh specificationarrow_forward8. A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency. Assuming that the actual output of the process is 1,750 units per hour, what are the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,