Chapter 9, Problem 2P

a)

Summary Introduction

To determine: The cost of plan A layout.

Introduction: Process layout refers to the plan or graphical representation about the design of the floor of a plant. It helps the firm to improve the efficiency of the design and it would help to improve the location of the departments.

Answer to Problem 2P

The cost of plan A layout is $23,400.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

And the work pieces moved from one department to the other as follows

Calculation of cost of plan A layout:

Calculate the total weekly material handling cost, MH cost using the formula

$\text{MH}\text{cost}={\displaystyle \sum _{\text{i=1}}^{\text{n}}{\displaystyle \sum _{\text{j=1}}^{\text{n}}{\text{x}}_{\text{ij}}}}\times {\text{C}}_{\text{ij}}$ (1)

where   $\text{n}=$ total number of departments

$\text{i,j }=$ individual departments

${\text{x}}_{\text{ij}}=$ number of loads moved from department i to department j

${\text{C}}_{\text{ij}}=$ cost to move an item from department i to department j

Substitute into the equation (1), the various values to obtain

$\begin{array}{c}\text{M}\text{to}\text{D}=\text{20}\times \text{600}\times \text{\$0}\text{.5}=\text{\$6,000}\\ \text{M}\text{to}\text{F}=\text{12}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$10,800}\\ \text{M}\text{to}\text{P}=\text{8}\times \text{200}\times \text{\$0}\text{.5}=\text{\$800}\end{array}$

$\begin{array}{c}\text{D}\text{to}\text{F}=\text{400}\times \text{6}\times \text{\$0}\text{.5}=\text{\$1,200}\\ \text{D}\text{to}\text{P}=\text{200}\times \text{10}\times \text{\$0}\text{.5}=\text{\$1,000}\\ \text{F}\text{to}\text{P}=\text{4}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$3,600}\end{array}$

Add all the costs to obtain the total material handling costs $\underset{\_}{\$23,400}$.

Hence, the cost of plan A layout is $23,400.

b)

Summary Introduction

To determine: The cost of the layout.

Answer to Problem 2P

The cost of the layout is $20,600.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

And the work pieces moved from one department to the other as follows

Calculation of cost of the layout:

After switching departments F and P, calculate the total material handling cost, MH cost using the formula

Calculate the total weekly material handling cost, MH cost using the formula

$\text{MH}\text{cost}={\displaystyle \sum _{\text{i=1}}^{\text{n}}{\displaystyle \sum _{\text{j=1}}^{\text{n}}{\text{x}}_{\text{ij}}}}\times {\text{C}}_{\text{ij}}$ (2)

where   $\text{n}=$ total number of departments

$\text{i,j }=$ individual departments

${\text{x}}_{\text{ij}}=$ number of loads moved from department i to department j

${\text{C}}_{\text{ij}}=$ cost to move an item from department i to department j

Substitute in equation (2), the various values to obtain

$\begin{array}{l}\text{M}\text{to}\text{D}=\text{20}\times \text{600}\times \text{\$0}\text{.5}=\text{\$6,000}\\ \text{M}\text{to}\text{F}=\text{8}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$7,200}\\ \text{M}\text{to}\text{P}=\text{12}\times \text{200}\times \text{\$0}\text{.5}=\text{\$1,200}\end{array}$

$\begin{array}{l}\text{D}\text{to}\text{F}=\text{400}\times 10\times \text{\$0}\text{.5}=\text{\$2,000}\\ \text{D}\text{to}\text{P}=\text{200}\times 6\times \text{\$0}\text{.5}=\text{\$600}\\ \text{F}\text{to}\text{P}=\text{4}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$3,600}\end{array}$

Add all the costs to obtain the total material handling costs $\underset{\_}{\$20,600}$

Hence, the cost of the layout is $20,600.

c)

Summary Introduction

To determine: The cost of the layout.

Answer to Problem 2P

The cost of the layout is $22,000.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

And the work pieces moved from one department to the other as follows

Calculation of cost of the layout:

After switching departments M and D, calculate the total material handling cost, MH cost using the formula

Calculate the total weekly material handling cost, MH cost using the formula

$\text{MH}\text{cost}={\displaystyle \sum _{\text{i=1}}^{\text{n}}{\displaystyle \sum _{\text{j=1}}^{\text{n}}{\text{x}}_{\text{ij}}}}\times {\text{C}}_{\text{ij}}$ (3)

where   $\text{n}=$ total number of departments

$\text{i,j }=$ individual departments

${\text{x}}_{\text{ij}}=$ number of loads moved from department i to department j

${\text{C}}_{\text{ij}}=$ cost to move an item from department i to department j

Substitute in equation (3), the various values to obtain

$\begin{array}{c}\text{M}\text{to}\text{D}=\text{20}\times \text{600}\times \text{\$0}\text{.5}=\text{\$6,000}\\ \text{M}\text{to}\text{F}=\text{10}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$9,000}\\ \text{M}\text{to}\text{P}=\text{6}\times \text{200}\times \text{\$0}\text{.5}=\text{\$600}\end{array}$

$\begin{array}{c}\text{D}\text{to}\text{F}=\text{400}\times 8\times \text{\$0}\text{.5}=\text{\$1,600}\\ \text{D}\text{to}\text{P}=\text{200}\times 12\times \text{\$0}\text{.5}=\text{\$1,200}\\ \text{F}\text{to}\text{P}=\text{4}\times \text{1,800}\times \text{\$0}\text{.5}=\text{\$3,600}\end{array}$

Add all the costs to obtain the total material handling costs $\underset{\_}{\$22,000}$.

Hence, the cost of the layout is $22,000.

d)

Summary Introduction

To determine: The best layout in terms of cost perspective.

Explanation of Solution

Best layout in terms of cost perspective:

From above calculations, the cost perspective, Plan B which has the total material handling costs of $\$20,600$ is cost effective than other plans.

Hence, Plan B is the best layout.