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Homework_2_-_Fall_11_-_KEY - SCM372 Mfg Plng Control Fall...

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Homework Set #2 – KEY Fall 2010 Due 11/02/2010 1. Short answer essay questions from The Goal (no more than 4 sentences per answer please!) a. Why is the cost of lost production on a bottleneck different from the cost of lost production on a non-bottleneck? Bottlenecks control the flow of the entire system. Lost production on a bottleneck thus means lost production for the entire system and so must reflect those larger costs. Lost production on a non-bottleneck generally does not impact the entire system and so, at most, its cost should only reflect the wasted resources (labor, material, overhead, etc.) at that particular operation. It can even be argued that lost production on a non-bottleneck is essentially free since it does not impact throughput and in many cases does not increase operating expense or inventory. b. What are the two major “Herbies” discovered in Alex’s plant? Briefly explain how they eventually found them. The two major bottlenecks are the NCX-10 machine and the heat treat furnaces. They tried to identify them from scheduling records, routing sheets, and other paperwork but without much luck. They eventually identified the bottlenecks by looking for huge piles of backlogged inventory waiting in front of an operation to be processed. c. How did acquiring the Zmegma and the Screwmeister help the plant improve throughput? Prior to the highly automated NCX-10, the operations were performed by two manual machines, the Zmegma and the Scremeister. Acquiring the old manual machines (Zmegma and Screwmeister) allowed the plant to augment production by 18% running one shift per day. They added capacity to the bottleneck. d. Why did the plant implement the gold tag system for material? The gold tag system was implemented to identify the parts that had already been processed through a bottleneck operation (either the heat treat or the NCX-10). All other operations in the plant were to treat the parts “like gold”. Otherwise, operations subsequent to the bottleneck might damage or delay these important parts. Page 1 of 11
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Homework Set #2 – KEY Fall 2010 Due 11/02/2010 2. You own a car body/paint repair shop. You have been asked to submit a bid to repair eight (8) identical cars from a dealer lot that were all identically damaged by a hail storm. Each car requires a new hood, roof, decklid, and total repainting. You estimate that the material costs for each car are $2,150.00. You also estimate that 30.00 labor hours are needed to repair/repaint the first car. The value of your labor is $75/hour. a. If there is no learning curve, what is the lowest total bid (for 8 cars) you should submit if you charge a 25% markup on material and you wish to recoup all your costs? Material charge per car is $2,150.00 x 125% = $2,687.50
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Homework_2_-_Fall_11_-_KEY - SCM372 Mfg Plng Control Fall...

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