Accounting sees an increase in the number and dollar value of bad debt write-offs
Has the company recently changed its credit policy? If so, why?
Are certain customer groups more delinquent than others are?
What collection procedures does the com
Operating margins have declined each of the past four years due to higher-than-expected
production costs from idle time, overtime, and reworking products
Does the production scheduling system perform satisfactorily? If not, why not?
Are there del
Give some examples of systems analysis decisions that involve a trade-off between each of the
following pairs of objectives:
There are many examples of the tradeoffs between information system objectives. One example
is provided here for each pai
How do you get a grizzled veteran police officer who is used to filling out paper forms to use a
computer to process his arrests and caseworkespecially when he has little or no experience
using a computer? That was the problem facing the Chicago Police
A manufacturing firm needed a specialized software program to identify and monitor cost
After an extensive analysis, the company purchased prepackaged software and
assigned three programmers to modify it to meet its individual circumstances an
Ajax Manufacturing installed a new bar code based inventory tracking system in its warehouse.
To close the books each month on a timely basis, the six people who work in the warehouse must
scan each item in a 36-hour period while still performing their
For years, Jerry Jingles dairy production facilities led the state in sales volume but recent
declines worry him. Customers are satisfied with his products but are troubled by the dairys late
deliveries and incomplete orders. Production employees (not t
For each of the following, discuss which data-gathering method(s) are most appropriate and why:
Examining the adequacy of internal controls in the purchase requisition procedure
-Observation of procedures, interviews with employees, and docume
The following problem situations occurred in a manufacturing firm. What questions should you
ask to understand the problem?
Customer complaints about product quality have increased.
What is it, specifically, that customers are complaining about?
What is the difference between material requirements planning (MRP) and manufacturing
resource planning (MRP II)?
What does the Japanese word kaizen mean?
Manufacturing resource planning includes material requirements planning, but it also adds
What is visual management?
Visual management refers to a way of managing and organizing operations so that the status of
the work situation is evident just by looking at it. If something is wrong, this condition should be
obvious to the observer,
Annual demand for a part is 500 units. The part is currently produced in batches. It takes 2.0
hours to set up the production machine for this part, and the downtime during setup costs
$125/hr. Annual holding cost for the part is $5.00. The company woul
Demand for a certain product is 25,000 units/yr. Unit cost is $10.00. Holding cost rate is 30%/yr.
Changeover (setup) time between products is 10.0 hr, and downtime cost during changeover is
$200/hr. Determine (a) economic order quantity, (b) total inve
What is the difference between a push system and a pull system in production control?
In a pull system of production control, the order to make and deliver parts at each workstation in
the production sequence comes from the downstream station tha
A stamping plant supplies sheet metal parts to a final assembly plant in the automotive industry. The
following data are values representative of the parts made at the plant. Annual demand is 150,000 pc
(for each part produced). Average cost per piece is
Requirements are to be planned for component C5 in product P1. Required deliveries for P1 are
given in Figure 25.2(b), and the product structure for P1 is shown in Figure 25.4. Assembly lead
time for products and subassemblies (P and S levels) is 1 week
It is currently day 10 in the production calendar of the XYZ Machine Shop. Three orders (A, B,
and C) are to be processed at a particular machine tool. The orders arrived in the sequence A-BC. The table below indicates the process time remaining and pro
A certain machine tool is used to produce several components for one assembled product. To
keep in-process inventories low, a batch size of 100 units is produced for each component.
Demand for the product is 3000 units per year. Production downtime cost
What is the basic starting point in a study to reduce setup time?
The starting point in setup time reduction is to recognize that there are two types of work
elements in the task of setting up a machine:
(1) internal elements, which can only be a
Annual demand for a made-to-stock product is 60,000 units. Each unit costs $8.00 and the annual
holding cost rate is 24%. Setup time to change over equipment for this product is 6 hr, and the
downtime cost of the equipment is $120/hr. Determine (a) econ
How is production leveling accomplished?
The approaches mentioned in the text are
(1) authorizing overtime during busy periods,
(2) using finished product inventories to absorb daily ups and downs in demand,
(3) adjusting the cycle times of the p
A workpart costing $80 is processed through the factory. The manufacturing lead time for the
part is 12 weeks, and the total time spent in processing during the lead time is 30 hours for all
operations at a rate of $35 per hour. Nonoperation costs total
The monthly usage for a component supplied to an appliance assembly plant is 5,000 parts. There
are 21 working days in the month and the effective operating time of the plant is 450 min per day.
Currently, the defect rate for the component is 2.2%, and th
Define lean production.
As defined in the text, lean production means doing more and more work with fewer and fewer
resources. It also means giving customers what they want and satisfying or surpassing their
In previous Problem 25.1
What is total productive maintenance?
Total productive maintenance (TPM) is a coordinated group of activities whose objective is to
minimize production losses due to equipment failures, malfunctions, and low utilization through
Monthly usage rate for a certain part is 15,000 units. The part is produced in batches and its
manufacturing costs are estimated to be $7.40. Holding cost is 20% of piece cost. Currently the
production equipment used to produce this part is also used to p
A variety of assembled products are made in batches on a batch model assembly line. Every time
a different product is produced, the line must be changed over which causes lost production time.
The assembled product of interest here has an annual demand
What is the 5S system?
The 5S system is a set of procedures that is used to organize work areas in the plant. It is also a
means of involving workers in the visual management of the factory. The five Ss stand for
(1) sort things in the workplace
What is a just-in-time production system?
As defined in the text, a just-in-time production system produces and delivers exactly the
required number of each component to the downstream operation in the manufacturing sequence
just at the time when
Name four of the seven forms of waste in production, as identified by Taiichi Ohno.
Taiichi Ohnos seven forms of waste are
(1) production of defective parts,
(2) production of more than the number of items needed (overproduction),
(3) excessive i