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ENGG956

Week 4 tutorial practice


1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
a.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

b.

c.

d.
e.

E1.16 Relevant information


(a)

(a)
(b)
(c)
(d)
(e)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(a) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
1

Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
f.

g.

h.

i.
j.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(f)
(g)
(h)
(i)
(j)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(b) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
4

Caravan park fees for storing the caravan is required.


Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

1.5

ENGG956
Week 4 tutorial practice

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
k.

l.

m.

n.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
5

o.

Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(k)
(l)
(m)
(n)
(o)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(c) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

E1.10
p.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

q.

r.

s.
t.

E1.16 Relevant information


(a)

(p)
(q)
(r)
(s)
(t)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(d) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
8

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
u.

v.

w.

x.
y.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(u)
(v)
(w)
(x)
(y)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

10

(e) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

11

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
z.

aa.

ab.

ac.
ad.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(z)

Annual lease paymnt


12

(aa)
(ab)
(ac)
(ad)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(f) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
13

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ae.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

14

af.

ag.

ah.
ai.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ae)
(af)
(ag)
(ah)
(ai)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(g) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

15

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

16

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
aj.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
ak.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
al.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
am. Packing to fill a customer order is a value adding activity.
an. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(aj)
(ak)
(al)
(am)
(an)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(h) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
17

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
18

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ao.

ap.

aq.

ar.
as.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ao)
(ap)
(aq)
(ar)
(as)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
19

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(i) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
20

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
at.

au.

av.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
21

aw. Packing to fill a customer order is a value adding activity.


ax. Product design initiatives is a value adding activity
E1.16 Relevant information
(a)

(at)
(au)
(av)
(aw)
(ax)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(j) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
22

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

23

E1.10
ay.

az.

ba.

bb.
bc.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ay)
(az)
(ba)
(bb)
(bc)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(k) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
24

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

25

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
bd.

be.

bf.

bg.
bh.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(bd)
(be)
(bf)
(bg)
(bh)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

26

(l) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

27

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
bi.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
bj.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
bk.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
bl. Packing to fill a customer order is a value adding activity.
bm. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(bi) Annual lease paymnt


28

(bj)
(bk)
(bl)
(bm)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(m)Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
29

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
bn.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

30

bo.

bp.

bq.
br.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(bn)
(bo)
(bp)
(bq)
(br)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(n) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

31

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

32

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
bs.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
bt.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
bu.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
bv. Packing to fill a customer order is a value adding activity.
bw. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(bs)
(bt)
(bu)
(bv)
(bw)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(o) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
33

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
34

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
bx.

by.

bz.

ca.
cb.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(bx)
(by)
(bz)
(ca)
(cb)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
35

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(p) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
36

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
cc.

cd.

ce.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
37

cf.
cg.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(cc)
(cd)
(ce)
(cf)
(cg)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(q) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
38

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

39

E1.10
ch.

ci.

cj.

ck.
cl.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ch)
(ci)
(cj)
(ck)
(cl)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(r) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
40

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

41

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
cm. Inspection activities are non-value-added. In every organisation inspection
activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
cn.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
co.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
cp. Packing to fill a customer order is a value adding activity.
cq. Product design initiatives is a value adding activity
E1.16 Relevant information
(a)

(cm)
(cn)
(co)
(cp)
(cq)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

42

(s) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

43

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
cr.

cs.

ct.

cu.
cv.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(cr) Annual lease paymnt


44

(cs)
(ct)
(cu)
(cv)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(t) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
45

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
cw. Inspection activities are non-value-added. In every organisation inspection
activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

46

cx.

cy.

cz.
da.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(cw)
(cx)
(cy)
(cz)
(da)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(u) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

47

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

48

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
db.

dc.

dd.

de.
df.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(db)
(dc)
(dd)
(de)
(df)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(v) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
49

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
50

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
dg.

dh.

di.

dj.
dk.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(dg)
(dh)
(di)
(dj)
(dk)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
51

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(w) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
52

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
dl.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
dm. Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
dn.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
53

do.
dp.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(dl)
(dm)
(dn)
(do)
(dp)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(x) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
54

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

55

E1.10
dq.

dr.

ds.

dt.
du.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(dq)
(dr)
(ds)
(dt)
(du)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(y) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
56

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

57

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
dv.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
dw. Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
dx.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
dy. Packing to fill a customer order is a value adding activity.
dz. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(dv)
(dw)
(dx)
(dy)
(dz)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

58

(z) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

59

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ea.

eb.

ec.

ed.
ee.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ea) Annual lease paymnt


60

(eb)
(ec)
(ed)
(ee)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(aa)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
61

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ef.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

62

eg.

eh.

ei.
ej.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ef)
(eg)
(eh)
(ei)
(ej)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ab)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

63

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

64

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ek.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
el.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
em.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
en. Packing to fill a customer order is a value adding activity.
eo. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ek)
(el)
(em)
(en)
(eo)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ac)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
65

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
66

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ep.

eq.

er.

es.
et.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ep)
(eq)
(er)
(es)
(et)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
67

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ad)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
68

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
eu.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
ev.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
ew.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
69

ex.
ey.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(eu)
(ev)
(ew)
(ex)
(ey)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ae)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
70

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

71

E1.10
ez.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

fa.

fb.

fc.
fd.

E1.16 Relevant information


(a)

(ez)
(fa)
(fb)
(fc)
(fd)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(af)Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
72

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

73

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
fe.

ff.

fg.

fh.
fi.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(fe)
(ff)
(fg)
(fh)
(fi)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

74

(ag)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

75

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
fj.

fk.

fl.

fm.
fn.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(fj)

Annual lease paymnt


76

(fk)
(fl)
(fm)
(fn)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ah)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
77

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
fo.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

78

fp.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

fq.

fr.
fs.

E1.16 Relevant information


(a)

(fo)
(fp)
(fq)
(fr)
(fs)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ai) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

79

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

80

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ft.

fu.

fv.

fw.
fx.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ft)
(fu)
(fv)
(fw)
(fx)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(aj) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
81

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
82

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
fy.

fz.

ga.

gb.
gc.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(fy)
(fz)
(ga)
(gb)
(gc)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
83

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ak)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
84

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
gd.

ge.

gf.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
85

gg.
gh.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(gd)
(ge)
(gf)
(gg)
(gh)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(al) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
86

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

87

E1.10
gi.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
gj.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
gk.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
gl. Packing to fill a customer order is a value adding activity.
gm. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(gi)
(gj)
(gk)
(gl)
(gm)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(am)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
88

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

89

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
gn.

go.

gp.

gq.
gr.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(gn)
(go)
(gp)
(gq)
(gr)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

90

(an)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

91

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
gs.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
gt.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
gu.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
gv. Packing to fill a customer order is a value adding activity.
gw. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(gs) Annual lease paymnt


92

(gt)
(gu)
(gv)
(gw)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ao)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
93

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
gx.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

94

gy.

gz.

ha.
hb.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(gx)
(gy)
(gz)
(ha)
(hb)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ap)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

95

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

96

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
hc.

hd.

he.

hf.
hg.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(hc)
(hd)
(he)
(hf)
(hg)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(aq)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
97

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
98

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
hh.

hi.

hj.

hk.
hl.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(hh)
(hi)
(hj)
(hk)
(hl)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
99

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ar)Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
100

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
hm. Inspection activities are non-value-added. In every organisation inspection
activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
hn. Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
ho.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
101

hp.
hq.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(hm)
(hn)
(ho)
(hp)
(hq)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(as)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
102

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

103

E1.10
hr.

hs.

ht.

hu.
hv.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(hr)
(hs)
(ht)
(hu)
(hv)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(at) Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
104

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

105

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
hw. Inspection activities are non-value-added. In every organisation inspection
activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
hx. Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
hy.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
hz. Packing to fill a customer order is a value adding activity.
ia. Product design initiatives is a value adding activity
E1.16 Relevant information
(a)

(hw)
(hx)
(hy)
(hz)
(ia)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

106

(au)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

107

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ib.

ic.

id.

ie.
if.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ib) Annual lease paymnt


108

(ic)
(id)
(ie)
(if)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(av)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
109

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ig.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

110

ih.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

ii.

ij.
ik.

E1.16 Relevant information


(a)

(ig)
(ih)
(ii)
(ij)
(ik)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(aw)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

111

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

112

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
il.

im.

in.

io.
ip.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(il)
(im)
(in)
(io)
(ip)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ax)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
113

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
114

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
iq.

ir.

is.

it.
iu.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(iq)
(ir)
(is)
(it)
(iu)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
115

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ay)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
116

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
iv.

iw.

ix.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
117

iy.
iz.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(iv)
(iw)
(ix)
(iy)
(iz)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(az)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
118

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

119

E1.10
ja.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

jb.

jc.

jd.
je.

E1.16 Relevant information


(a)

(ja)
(jb)
(jc)
(jd)
(je)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(ba)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
120

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

121

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
jf.

jg.

jh.

ji.
jj.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(jf)
(jg)
(jh)
(ji)
(jj)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

122

(bb)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

123

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
jk.

jl.

jm.

jn.
jo.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(jk) Annual lease paymnt


124

(jl)
(jm)
(jn)
(jo)

Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(bc)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21
125

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
jp.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.

126

jq.

Moving materials to work stations could vary from organisation to organisation


based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

jr.

js.
jt.

E1.16 Relevant information


(a)

(jp)
(jq)
(jr)
(js)
(jt)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(bd)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18

127

Potential Area for


Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

128

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ju.

jv.

jw.

jx.
jy.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ju)
(jv)
(jw)
(jx)
(jy)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(be)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
129

Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
130

Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
jz.

ka.

kb.

kc.
kd.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(jz)
(ka)
(kb)
(kc)
(kd)
(b)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

Supply cost of various utilities like paper, toner and tonner drum.
131

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(bf)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
132

$100: the cost of beverages


Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ke.

kf.

kg.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
133

kh.
ki.

Packing to fill a customer order is a value adding activity.


Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ke)
(kf)
(kg)
(kh)
(ki)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(bg)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
134

(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice
1.5
Relevant information any information available for the activity that defer upon alternatives in
taking a decision.

135

E1.10
kj.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
kk. Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
kl.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
km. Packing to fill a customer order is a value adding activity.
kn. Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(kj)
(kk)
(kl)
(km)
(kn)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17
(bh)

Uncertainties the CEO faces in the buy hotel alternative:


demand for rooms
Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
136

(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip
$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

137

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

ENGG956
Week 4 tutorial practice

1.5

Relevant information any information available for the activity that defer upon alternatives in
taking a decision.
E1.10
ko.

kp.

kq.

kr.
ks.

Inspection activities are non-value-added. In every organisation inspection


activities are carried out to ensure and maintain the quality of the product. Some
organisations have per and post manufacture inspection where as other have high
control and continues inspection during various stages of manufacturing.
Moving materials to work stations could vary from organisation to organisation
based on the circumstances either it could be value-added or non-value-added to an
organisation. Most of the cases it depends on the type of material handling systems
adopted by the organisations.
Manufacturing extra inventory to keep employees busy in most of the
organisation this is an non value added activity because this activity is carried to
reduce the lack time in production during the season .where as in other organisation
they do directly sell the inventory in this case it can be an added value.
Packing to fill a customer order is a value adding activity.
Product design initiatives is a value adding activity

E1.16 Relevant information


(a)

(ko)
(kp)
(kq)
(kr)
(ks)

Annual lease paymnt


Purchase price
Maintaince price
Warranty
Features such as wireless, power rating etc

(b)

Supply cost of various utilities like paper, toner and tonner drum.

(c)

By categorising relevant and non-relevant activates helps for better decision and helps
to estimate best possible cost for the operation. If they are not categorised properly the
estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17

138

(bi)Uncertainties the CEO faces in the buy hotel alternative:

demand for rooms


Room pricing or rent for room.
Hotel maintenance cost
Security
Energy cost
Estimating future demands.

(b) Uncertainties for the heart monitor decision:


Future demand for equipment at the hospital
wages for the special technician
Maintenance or operating costs for the monitors Expected useful life of the
monitors
(c) The buy hotel alternative probably has a greater degree of uncertainty because it is
outside the core competencies of the hospital and CEO.
E1.18
Potential Area for
Cost Reduction

Potential Cost Reduction


Work with suppliers to reduce
Redesign cupboards to use fewer
direct materials costs
parts
Manufacturing
Reduce inventory
Less inspection time and usage of
process
more flexible parts.
Administration
Payroll
Use of automation technologies
Changes in quality Introducing new versions and Identification of alternatives.
or functionality
continues updating the product
(b) The price should be decreased without affecting the cost the product. This can be
achieved by using various strategies during production like JIF to reduce the inventory
storage and various other value chain analysis to identify the non-value adding
activities.
E1.21

(a)

Relevant costs for deciding whether to go camping or stay home this year:
$1000: related -past cost of the caravan
$150 (1000 * 0.15): related -the oil portion
$250: the cost of groceries
$100: the cost of beverages
Caravan park fees for storing the caravan is required.
Motel prices based on nights required

(b)

The relevant costs for deciding whether to continue to use the caravan or to sell it and
stay in motels in the future:
$1000: this is relevant because it helps them to estimate for total cost for trip

139

$150: this is now relevant because the family should use some kind of transport to
travel.
$250: the cost of groceries is relevant
$100: the cost of beverages is relevant
Motel costs are required if they sell the caravan
Storage costs of the caravan is required if they are using caravan

(c)

Other factors that might include:


Reselling price of the caravan
His wife preference towards the motel over the caravan
The comfort ration of caravan and motel
His family entertainment

(d)

With the given data it is hard to decide whether to choose caravan or the motel.
However my personal prefer on choosing depends on my budget to the trip and places
will be visiting. The decision is also depends on the comfort ratio of the caravan and
motel.
I would suggest frank to have a decision with family for an optimistic decision.

(e)

140