Assignment 3

1. In what ways are the equipment selection and facility layout problems related? Explain.

2. Hosreel, Inc., a manufacturer of a plastic garden hose reel, is contemplating the purchase of a new type
of injection molding equipment that can produce the end product by itself. In other words, no additional
operations or equipment is needed. The company wants to produce 1000 units per day and the machine
efficiency is 99%. Assuming that each reel can be manufactured in 57 seconds, determine how many
pieces of the new injection molding equipment Hosreel must purchase if it operates on only one 8-hour
shift per day.
If the injection molding equipment in Exercise 6 has a scrap rate of 10%, would the answer to Exercise 6
change? Why or why not? Show calculations to support your answer.

3. The route sheet for a handle used in medical diagnostic equipment is given in Table 2.5. Also given are
the desired hourly output and scrap rate for each machine. Assuming that each machine has 90%
manufacturing efficiency, determine (1) the required input and (2) how many machines of each type
Mediquip Company, Inc., must purchase if the production rate at the lathe, drill, knurl, and buff is 6, 10,
15, and 18 units per hour respectively.

Find the number of machines required.

4. Parries Confectionery Company is considering the introduction of a new toffee. It requires four
processes: A, B, C, and D in sequence. The equipment required for each process is available in
the company now and is dedicated to the production of another type of candy. Although some
capacity is available on all the equipment types, management is not sure whether they need to
buy additional pieces. To aid management in decision making, the following information is
available:
(a) The four pieces of equipment—one for each type—are available 50% of the time.
(b) The company operates one shift per day (8 hours) and 250 days per year.
(c) If the company decides to produce toffee, then it must allocate half a day for candy production
and the remaining half day for toffee.
(d) The time required for equipment setup, cleaning, and maintenance and scrap rate (i.e.,
spillage, production items that do not meet shape and other quality standards and hence
must be discarded, etc.) for each process is given in Table 2.6.
(e) The demand for toffee is expected to be 1,000,000 per year. If 1,000,000 toffees are required
to be made per year, determine how many input and output units are required for each
process.
(f) Determine whether the company can produce the new toffee with the available equipment.
If not, how many pieces of each equipment must Parries purchase? Show your calculations.

18. CellMan, Inc., has three manufacturing cells, each of which houses a variety of manufacturing
equipment. One of the cells has six machines. Data pertaining to these six machines are provided
in Table 2.7.

(a) Determine the total space required.

(b) Prepare a table similar to the one shown in Table 2.5, assuming that for each equipment type
(i) Auxiliary equipment dimensions are 10% of those of the primary equipment.
(ii) Operator area is 8% of that required for auxiliary and primary equipment.
(iii) Material storage area is 20% of the actual area required for the primary equipment.
(iv) Additional allowance is 80% of the areas determined in (i), (ii), and (iii).