MECH3170Assignment#1

ThisassignmentcoversmaterialfromChapters1,5,and6ofOperationsandSupplyChain
ManagementbyJacobsandChase(13thEdition)fromyourreadingpackageaswellastopics
discussedinclassandtutorials.
Instructions:

Pleaseanswerallquestions.
Youarewelcometoworkwithfellowstudentsontheassignment,however,each
studentisrequiredtosubmittheirownhardcopyassignmentforgrading.
Ifyouworkwithothers,pleaselisttheirnamesonyourassignment.
Assignment#1isworth1%ofyourfinalgradeinthecourse.
Assignment#1isdueonMonday,January26,2015before8:30am(inclass).

Questions:
1)UsingExhibit1.3(fromChapter1ofJacobsandChase,13thEdition)asamodel,describe
thesourcemakedeliverreturnrelationships(i.e.whattypesoforganizationsmightbe
includedineachofthesecategories)inthefollowingsystems:
a. Anairline
b. Anautomobilemanufacturer
c. Ahospital
d. Aninsurancecompany

2) AnengineeringuniversityteamisabouttomanufacturecontrolarmsforaFormula(or
electric)SAEvehicle.Thereare5studentsworkingonthemanufacturingandtheywillbe
arrangedwith1studentperastationfortheentireprocess.Allstudentswillbeginatthe
exactsametime.Pleaseassumethatnobuffersexist(buffersarenotallowed).Onebatch
ofpartsconsistsof8completepartsandonlyonebatchwillbeproduced.Theprocess
consistsofthefollowingstepsandpredictedaveragetasktimesperunit:
Task

a)Manufacturesphericalbearinghousingsusingalathe
b)CutChromolytubestolength
c)Notchtubeends
d)Assembleonjigandperformfinaltuningoffit(includes3
bearinghousingsand2preparedtubesperafinishedpart)
e)Weldassembledcomponentsonsecondjig

Prerequisite

None
None
partsfromb
3partsfroma
2partsfromb
Partsfromd

Required
Time/
Unit
20min.
1min.
3min.
10min.
10min.

a)
b)
c)
d)
e)
f)
g)
h)
i)

Drawtheprocessflowchart.
Isthereabottleneckandifso,whichstationisthebottleneck?
Wouldanystation(s)besubjecttoblockingandifsowhichstation(s)?
Wouldanystation(s)besubjecttostarvingandifsowhichstation(s)?
Whatisthecycletime?
Whatisthethroughputrate?
Whatistheoperationtimefor1completebatch?
WhatistheutilizationofStationb?
Lastyearsteammanufacturedcontrolarmswithacycletimeof45minutes,whatis
thisyearsteamsefficiencycomparedtolastyearsteam?
j) Assumethatabufferisaddedafterstationa.Ifthestudentatstationawereto
beginbeforetheotherstudents,howearly(ataminimum),shouldthisstudent
begininordertomaximizetheutilizationoftheweldingequipment?

3) Hipitisabiomedicalcompanywhichmanufacturescustomtotalhipreplacementstems
basedonpatientMRIdata.Thecompanycombineseachoftheirstemswithaheadcup
assemblyfromasinglesupplier.Ittakes5hourstomakeatotalhipreplacementandthe
companyshipsanaverageof40totalhipreplacementseach8hourshift.Hipitholdsan
averageinventorylevelof500headcupassembliesasrawmaterials.Howmanyheadand
cupassembliesareintheplant(rawmaterialsandworkinprogress)?

4) TheGoodpartsCompanyproducesacomponentthatissubsequentlyusedintheaerospace
industry.Thecomponentconsistsofthreeparts(A,B,andC)thatarepurchasedfrom
outsideandcost40,35,and15centsperpiece,respectively.PartsAandBareassembled
firstonassemblyline1,whichproduces140componentsperhour.PartCundergoesa
drillingoperationbeforebeingfinallyassembledwiththeoutputfromassemblyline1.
Thereareintotalsixdrillingmachines,butatpresentonlythreeofthemareoperational.
EachdrillingmachinedrillspartCatarateof50partsperhour.Inthefinalassembly,the
outputfromassemblyline1isassembledwiththedrilledpartC.Thefinalassemblyline
producesatarateof160componentsperhour.Atpresent,componentsareproduced
eighthoursadayandfivedaysaweek.Managementbelievesthatifneedarises,itcanadd
asecondshiftofeighthoursfortheassemblylines.

Thecostofassemblylabouris30centsperpartforeachassemblyline;thecostofdrilling
labouris15centsperpart.Fordrilling,thecostofelectricityis1centperpart.Thetotal
overheadcosthasbeencalculatedas$1,200perweek.Thedepreciationcostfor
equipmenthasbeencalculatedas$30perweek.


a. Drawaprocessflowdiagramanddeterminetheprocesscapacity(numberof
componentsproducedperweek)oftheentireprocess.
b. Supposeasecondshiftofeighthoursisrunforassemblyline1andthesameisdonefor
thefinalassemblyline.Inaddition,fourofthesixdrillingmachinesaremade
operational.Thedrillingmachines,however,operateforjusteighthoursaday.Whatis
thenewprocesscapacity(numberofcomponentsproducedperweek)?Whichofthe
threeoperationslimitsthecapacity?
c. Managementdecidestorunasecondshiftofeighthoursforassemblyline1plusa
secondshiftofonlyfourhoursforthefinalassemblyline.Fiveofthesixdrilling
machinesoperateforeighthoursaday.Whatisthenewcapacity?Whichofthethree
operationslimitsthecapacity?
d. Determinethecostperunitoutputforquestionsb.andc.
e. Theproductissoldat$4.00perunit.Assumethatthecostofadrillingmachine(fixed
cost)is$30,000andthecompanyproduces8,000unitsperweek.Assumethatfour
drillingmachinesareusedforproduction.Ifthecompanyhadanoptiontobuythe
samepartat$3.00perunit,whatwouldbethebreakevennumberofunits?

5) Afirmissellingtwoproducts,chairsandbarstools,eachat$50perunit.Chairshavea
variablecostof$24,andbarstools,$20.Fixedcostsforthefirmis$20,000.
a. Ifthesalesmixis1:1(onechairsoldforeverybarstoolsold),whatisthebreakeven
pointindollarsofsales?Inunitsofchairsandbarstools?
b. Ifthesalesmixchangesto1:4(onechairsoldforeveryfourbarstoolssold),whatisthe
breakevenpointindollarsofsales?Inunitsofchairsandbarstools?