Scribd
Upload
22 views3 pages

bam 158 module 11 to 12

The document presents various production capacity and efficiency problems for different manufacturing scenarios, including ballet shoes, glass tumblers, frying pans, and a breakeven analysis for a product. It outlines calculations for design and effective capacities, actual outputs, and efficiency and utilization metrics. Additionally, it includes a breakeven analysis involving fixed and variable costs for a product priced at $199.95.

Uploaded by

froilan copiling
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
22 views3 pages

bam 158 module 11 to 12

The document presents various production capacity and efficiency problems for different manufacturing scenarios, including ballet shoes, glass tumblers, frying pans, and a breakeven analysis for a product. It outlines calculations for design and effective capacities, actual outputs, and efficiency and utilization metrics. Additionally, it includes a breakeven analysis involving fixed and variable costs for a product priced at $199.95.

Uploaded by

froilan copiling
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

1.

A manufacturer of ballet shoes has


determined that its production facility has a
design capacity of 300 shoes per week. The
effective capacity, however, is 230 shoes per
week. What is the manufacturer's capacity
utilization
relative to both design and effective capacity
if output is 200 shoes per week?
2.You are managing a group of 10 Electricians. These individuals undertake in-home servicing of electrical
systems and are called by telephone for either emergency or pre-arranged visits. They charge a minimum
call out fee that covers the first 15 minutes of their visit plus travelling time. Beyond the first fifteen
minutes they charge in minimum blocks of 15 minutes plus any materials that might be necessary to carry
out the job. The average call out takes 1 hour. The workers usually are available for eight hours a day but
with 2 coffee breaks of 15 minutes each and a half hour lunch break, they actually work a 7-hour day.
Taking time off and illness into account reduces the electricians’ available time by 20%. This means the 7
hours per day is reduced to a 5 hour and 36-minute day (5.6 hours) If actual work is only 200 hours billed in
the week then (a) What is the capacity utilization of the team? (b) What is their efficiency?

Midterm
Problems

1. The Crystal Sparkle Co. produces glass tumblers. The plant Is designed to produce 400 tumblers per
hour, and there is one eight-hour shift per working day. However, the plant does not operate for the
full eight hours: the employees take two 15-minute breaks in each shift, one in the first four hours and
one in the second four hours, the first thirty minutes of the shift are spent raising the kilns to the
required temperature for firing glass. The plant usually produces about 10,000 tumblers per five-day
workweek. Answer the following questions by adjusting the data to one eight-hour shift.

a. What is the design capacity in tumblers?

b. What is the effective capacity in tumblers? As a percent?

c. What is the actual output in tumblers?

d. What is the efficiency?

e. What is the utilization?

2. The Goode and Cooke Company produces several models of frying


pans. There is little difference in the production time required for the
various models; the plant is designed to produce 160 frying pans per
eight-hour shift, and there are two shifts per working day. However,
the plant does not operate for the full eight hours: the employees
take two 12-minute breaks in each shift, one in the first four hours
and one in the second four hours; two hours per week are devoted to
cleaning the factory and performing maintenance on the machines;
one four-hour period every four weeks is devoted to the meeting of
the quality circle. The plant usually produces about 3,500 frying pans
per four-week period. You may ignore holidays in solving this problem.
Answer the following questions by adjusting the data to a four-week
time period.
a. What is the design capacity in frying pans?

b. What is the effective capacity in frying pans? As a percent?

c. What is the actual output?

d. What is the efficiency?

e. What is the utilization?

f. Re-work the problem using a time period of one eight-hour shift.

3. The selling price of the product is $199.95. The variable costs per unit are:

Labor $60.25

Raw material 25.70

Purchased component 21.50

Variable overhead 17.50

The fixed costs total $300,000 per year. Perform a breakeven analysis of this company.

a. What is the total revenue function?

b. What is the total cost function?

c. What is the profit function?

d. What is the breakeven point in units of the product?

e. What is the revenue at the breakeven point?

You might also like