Chap007 - Chapter 07 - Manufacturing Processes CHAPTER 7...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 07 - Manufacturing Processes CHAPTER 7 MANUFACTURING PROCESSES Review and Discussion Questions 1. What does the product-process matrix tell us? How should the kitchen of a Chinese restaurant be structured? The Chinese restaurant case might be debatable since it involves both high volume and high variety. Probably a work cell would be best. 2. It has been noted that during World War II Germany made a critical mistake by having its formidable Tiger tanks produced by locomotive manufacturers, while American car manufacturers produced the less formidable U.S. Sherman tank. Use the product-process matrix to explain that mistake and its likely result. The locomotive manufacturers likely used project technology and processes. This is low volume, high cost production. On the other hand, mass-producing automakers had the technology to make high volume at low per unit cost. 3. How does the production volume affect break-even analysis? A break-even analysis takes into account the production volume and the relevant cost of producing the volume by the available alternative processes. It calculates the relative profit or loss of the alternative processes, thus helping to decide which alternative to choose for a certain volume of production. 4. What is meant by a process? Describe its important features. A process means a set of tasks that transform input into useful outputs. The important features of process are (a) tasks, (b) flow (of material and information), and (c) storage (of material and information). 79
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 07 - Manufacturing Processes Problems Problem Type of Problem Difficulty New Problem Modified Problem Check Figure in Appendi x A Assembly Chart Flow Process Chart Break-even 1 Yes Moderate Yes 2 Yes Moderate Yes 3 Yes Yes Moderate 4 Yes Yes Difficult 5 Yes Yes Moderate Yes 6 Yes Easy 7 Yes Easy 8 Yes Moderate 9 Yes Easy Yes 10 Yes Difficult 11 Easy 12 Easy 13 Easy 14 Easy 15 Easy 1. BEP (dollars) = $10,000/(1-($8/$12.50)) = 10,000/.36 = $27,777 BEP (units) = $10,000/(12.50-8) = 10,000/4.50 = 2,222 units 2. Existing process BEP = $14,000/(1-.5) = 28,000 units 30,000-28,000 X $.50 profit = $1,000 New equipment BEP = $20,000/(1-.6) = 50,000 units No profit as volume equals BEP 80
Background image of page 2
Chapter 07 - Manufacturing Processes 3. a. Assembly chart (answers may vary). 81
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 07 - Manufacturing Processes b. Flow process chart (answers may vary.) 82
Background image of page 4
Chapter 07 - Manufacturing Processes 4. This can be a fairly extensive assignment depending upon the amount of research students do
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Chap007 - Chapter 07 - Manufacturing Processes CHAPTER 7...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online