7.5 Borges Machine Shop, Inc., has a 1-year
contract for the production of 200,000 gear housings for a new off-road
vehicle. Owner Luis Borges hopes the contract will be extended and the
volume increased next year. Borges has developed costs for three
alternatives. They are general-purpose equipment
(GPE), flexible manufacturing system (FMS), and expensive, but
efficient, dedicated machine (DM). The cost data follow: Which process
is best for this contract? 7.7 Using the data in Problem 7.5, determine
the
best process for each of the following volumes: (1)
75,000, (2) 275,000, and (3) 375,000. 7.11 Tim Urban, owner/manager of
Urban’s Motor Court in Key West, is considering outsourcing the daily
room cleanup for his motel to Duffy’s Maid Service. Tim rents an
average of 50 rooms for each of 365 nights (365 x
50 equals the total rooms rented for the year). Tim’s cost to clean a
room is $12.50. The Duffy’s Maid Service quote is $18.50 per room plus a
fixed cost of $25,000 for sundry items such as uniforms with the
motel’s name. Tim’s annual fixed cost for space,
equipment, and supplies is $61,000. Which is the preferred process for
Tim, and why? S7.3 If a plant has an effective capacity of 6,500 and an
efficiency of 88%, what is the actual (planned) output? S7.5 Material
delays have routinely limited production of
household sinks to 400 units per day. If the plant efficiency is 80%,
what is the effective capacity?
S7.7 SoutheasternOklahomaStateUniversity’s business
program has the facilities and faculty to handle an enrollment of 2,000
new students per semester. However, in an effort to limit class sizes
to a “reasonable” level (under 200, generally), Southeastern’s dean,
Holly Lutze, placed a ceiling on enrollment of 1,500 new students.
Although there was ample demand for business
courses last semester, conflicting schedules
allowed only 1,450 new students to take business courses. What are the
utilization and efficiency of this system?
S7.11 The three-station work cell illustrated in
Figure S7.7 has a product that must go through one of the two machines
at station 1 (they are parallel) before proceeding to station 2. a) What
is the bottleneck time of the system? b) What is the bottleneck station
of this work cell? c) What is the throughput time? d) If the firm
operates 10 hours per day,
5 days per week, what is the weekly capacity of this work cell?
S7.15 A production process at Kenneth Day
Manufacturing is shown in Figure S7.9. The drilling operation occurs
separately from, and simultaneously with, the sawing and sanding
operations. A product needs to go through only one of the three assembly
operations (the operations are in parallel). a) Which operation is the
bottleneck? b) What is the bottleneck time? c) What is the throughput
time of the overall system? d) If the firm operates 8 hours per
day, 20 days per month, what is the monthly capacity of the manufacturing process?
S7.28 James Lawson’s Bed and Breakfast, in a small
historic Mississippi town, must decide how to subdivide (remodel) the
large old home that will become its inn. There are three
alternatives: Option A would modernize all baths
and combine rooms, leaving the inn with four suites, each suitable for
two to four adults. Option B would modernize only the second floor; the
results would be six suites, four for two to four adults, two for two
adults only. Option C (the status quo option) leaves all walls intact.
In this case, there are eight rooms available, but only two are suitable
for four adults, and four rooms will not have private baths. Below are
the details of profit and demand patterns that will accompany each
option: Which option has the highest expected monetary value
