Assignments: 1)Choice of machine or processQ1 A component can be manufactured either on machine A or on machine B.

The cost & time information to process a component is given below: Particulars Machine A Machine B Set up time (minutes) 30 120 Processing time (minutes) 10 5 Tooling up cost (Rs) 200 500 Labour cost Rs / hour 2 2 Depreciation & other cost Rs / hour 10 20 The tooling cost is to be recovered within one year. There are no repeat orders. The requirements are to be met in 2-lots i) Find the quantity at which both alternatives results in equal cost (BEP) ii) Give the decision rule regarding the choice of machine. iii) If the quantity required is 800 nos /year, which of the two machines do you propose. Hint:Fixed cost = Set up cost + tooling up cost = [No. of set ups / year] X [Set up time (in hrs) / set up] X [(set up labour rate) + (depreciation & other expenses / hour)] + [tooling up costs]. Variable cost = [Processing time (in hours)] X [(labour cost / hour) + (depreciation & other expenses / hour)] Answer, Break even quantity = 2083 pieces. 2) Process selection vs production range Q2 A company’s fixed & variable costs for manufacturing a component on three alternative machines are given below. Formulate the decision rules for selecting the machines. Machine Fixed cost (Rs) Variable cost (Rs per unit) A 5 0.20 B 30 0.10 C 70 0.05 Hint- It is required to find for which ranges of production, the 3-machines will be most economical. Graphical solution will be suitable. 3) Number of machines required. Q3 A job is performed on a machine. The following details are given: Standard time for job = 6 minutes per piece. Quantity to be produced = 70, 000 / month Machine capacity = 2000 hrs / month Machine utilization = 90% Compute the number of machines Note: i) Q2 & Q3 is the assignments. ii) Q1 is for learning only. However you may attempt the same as assignment.

B. what is the rated output in standard hours per week? . There are 5-machines of the same capacity in this work centre.4) A firm has 4-work centre A. If the machines are utilized 80% of the time at a system efficiency of 90%. each shift of 8 Hrs duration. C & D in series with individual capacities in units /day shown below. The actual out put is also shown below: A= 430 → B=380 → C=350 → D= 410 → Actual output =310 i) What is the system capacity? ii) What is the system efficiency? 5) A work centre operates 5 days / week on a 2 shifts / day basis.

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