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Assignment 2: (Due Date 1 April)

This document contains 4 assignments related to manufacturing processes and quality control: 1. Analyze costs for 3 production alternatives to produce 200,000 gear housings and determine the most economical process and volume. 2. Choose between renting high-performance or standard-performance CAD software based on costs per drawing for a projected volume of 80 drawings per month. 3. Select the best production method for a new shelf based on costs to maximize annual profit from projected sales of 24,000 units. 4. Calculate control limits using a known process standard deviation and sample data to determine if a measurement process is in statistical control.

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Waqas Ahmed
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339 views

Assignment 2: (Due Date 1 April)

This document contains 4 assignments related to manufacturing processes and quality control: 1. Analyze costs for 3 production alternatives to produce 200,000 gear housings and determine the most economical process and volume. 2. Choose between renting high-performance or standard-performance CAD software based on costs per drawing for a projected volume of 80 drawings per month. 3. Select the best production method for a new shelf based on costs to maximize annual profit from projected sales of 24,000 units. 4. Calculate control limits using a known process standard deviation and sample data to determine if a measurement process is in statistical control.

Uploaded by

Waqas Ahmed
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 2 (due date 1st April)

1. 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:

a) Which process is best for this contract?


b) Determine the most economical volume for each process?

2. Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The high-
performance (HP) software rents for $3,000 per month per workstation. The standard-
performance (SP) software rents for $2,000 per month per workstation. The productivity
figures that he has available suggest that the HP software is faster for his kind of design.
Therefore, with the HP software he will need five engineers and with the SP software he will
need six. This translates into a variable cost of $200 per drawing for the HP system and $240
per drawing for the SP system. At his projected volume of 80 drawings per month, which
system should he rent?

3. Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the
Maxistand. To help accomplish this, the firm has gathered the following production cost
data:

ANT & EQUIP.


VARIABLE COSTS (PER UNIT) (R MATERIAL ENERGY
Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand
will sell for $120 per unit.
a) Which process type will maximize the annual profit from producing the Maxistand?
b) What is the value of this annual profit?

4. A process that is considered to be in control measures an ingredient in ounces. Below are the
last 10 samples (each of size n = 5) taken. The population process standard deviation, σ, is
1.36.

a) If z = 3, what are the control limits?


b) Is the process in control?

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