QUESTION

1. The XYZ Company purchases a component used in the manufacturing of automobile generators directly from the supplier. XYZ's generator production operation, which is operated at a constant rate, will require 1,000 components per month throughout the year.

If ordering cost are $25.00 per order, unit cost is $2.50 per component, and annual inventory holding cost are charged at 20%, answer the following inventory policy questions for XYZ.

a. What is the EOQ for this component?

b. What the cycle time in months?

c. What are the total annual inventory holding and ordering associated with your recommended EOQ?

d. Assuming 250 days of operation per year and a lead time of 5 days, what is the reorder point for the XYZ Company?

2 a) Altman Electronic, Inc makes resistors and among the last 100 resistors inspected, the percent defective has been 0.05. Determine the upper and lower limits for the process for 99.7% confidence.

b) The manufacturer of precision parts for drill presses produces round shafts for use in the construction of drill presses. The average diameter of a shaft is 0.56 inch. The inspection samples contain six shafts each. The average range of these samples is 0.006 inch. 

3) Determine the upper and lower control chart limit.

a) What are the advantages and disadvantages of keeping stock?

b) What responsibilities do operations managers have? 

c) How can statistical process control help quality planning and control?

4) 

a) What are the benefits of Lean Manufactving to an organization

b) What are the benefits of cycle counting?

5) The task shown below are to be assigned to the appropriate workstations. Assume working hours as 8 hours per day (5 - day work week)

Task(minutes)                                              Preceding Task                                       Task Time

A                                                                                                                             7

B                                                                    A                                                       6

C                                                                    A                                                       7.5

D                                                                    B                                                        6

E                                                                    C, D                                                    6.5

F                                                                     D, E                                                   5.7

G                                                                      F                                                       7

a) Draw the precedence diagram of task to be performed

b) Determine the cycle time

c) What is the maximum capacity of the line?

d) Determine the minimum number of workstations require

e) Based on the number of workstations, draft the layout for the product flow and also identify the bottleneck station.

f) What is the efficiency of the line?

g) If wages is RM40 per day, find the total cost of idleness per month.

h) If the company's desired capacity per day is 70 units, what would be the most appropriate cycle time per unit.