Answers to Problems at the End of Chapter 2 213 Cacing [a 0 | tai eo 5.000490, fa 1 | sea.ac0 -s75000 $90,000 $205,000 a | -ser'beo -s75;000 -goc/e00 sues, o00 3 | -ten.o00 375,000 $90,000 -s195,000 4 | soto g4s-con s00,000t1.b00 5 i = Hts. 07 fo 45.co0 | $30,000 415,000 to go sa.pd0, 415,200 40 $0 fy f15.000 Fora given value of Q. multiplying the net income in the column by the probability ofits ‘occurrence and summing over all values of x yields the following expected profits for cach value of Q. As shown, the optimum number to schedule is 5, with an expected net profit of $35,335. Expected Profit Mumbee of Céstings Scheduled $19,732 $35,225 $23,095 $14,673 ‘The probability of losing money on the transaction is the probability of the net income ‘being negative when Q equals 5. From above, anegative net cash flow occurs if less than 4 good castings are produced. The probability of producing less than 4 good castings equals 0.0005 + 0.0081 +-0.5729, or 0.0815. Using Excel itis easy to perform the sensitivity analysis. By varying the cost parameter, itis found that a cost of $22,044.96 yields an expected profit of zero for Q= 5. Likewise. ‘when the cost af producing a casting is reduced to $7,873.19. the optimum number to schedule increases to 6, We could nat find a cost that would reduce the optimum, production batch to 4 and still have a positive expected profit Again, using Excel itis easy to perform sensitivity analyses. For example, if the probability of a good casting is reduced to 0.84248 then the optimura production batch increases to 6; likewise. ifthe probability of a good casting increases to 0.963781, then the optimum batch production quantity decreases to 4 ‘Shown below is the probability mass function for number of good high precision formed parts (x), based on @ parts scheduled for production,‘For given value of ©. multiplying the net income inthe columa by the protability of ts ‘Sccutfence and sunning over all values Of © yells the following expecta ros fot ‘Sch value of Q. Baved onthe ronults obiained, scheduling 21 castings For production Sields the maimam expected profit of $22.63 ‘Shown Delow isthe probability mass function forthe number of good eustonrdesigned ‘Stings preniuced (9), based on Q castings schedule for proxucton.Answers to Problems at the End of Chapter 2 Epcot ae a Bia ust ‘Based on the results obtained, scheduling 25 castings for production yields the maximum ‘expected profit of $8,338, ‘Showa below is the probability mass function for number of good castings produced (x), Wa BAe ea a es ea en based on Q castings scheduled for production. a wae Fae ese HA ag — wuuvuuwuee eewuweseeee-- Hf ‘Netincomes for feasible combinations of @ and x are shown below. Bareaaaeiiee St ie, Soi date fie eet to‘Answers to Problems at the End of Chapter 2 240 SUUNERBUMEE ees de eee ees on] i Tat 3525 afm pss Box Sah wa Soo shan it au nai ae te ae pose anges pet aoe wjat gon soon gaan quest finn opts aman gape ae te Bits wim Sit goin sean Erectaoge: ian aipteatiwyatges a sete (boas eam wi 3c 9s) BaD wns ‘Suits so 0 ym eae tas a8 ee = HH Sui Bis Sou Bie ps 5 [52 fae int aoe oi Bio som SRN a ai ee Sh bi Sos Seles 5 2 Sys bee mes oan wow wax wom oe wee m "RBs Boi Bee win Sin She ae Sim The et Ble oe ee win ae wet Ble SR EPROM to moe aie ER E eS Re So a/b REE & 3 Sem, Sie be Fe So MEME |B Re Ee pp ES S/R EEE ES gE E a 3/B RE PS Bw E ee For a given value of Q. multiplying the net income in the column by the probability of its ‘vcurrence and summing over all values of x yields the following expected profits for each value of Q.‘Answers to Problems at the End af Chapter 2 29 48000 -Fea0e -#2,399 49,200 $1,000 410,000 410440 -#19,800 $11,200 411,690 1123000 ‘SE000 $2408 $3,300 9.200 $5.00 -$10,000 410400 $19.02 -$11-20 $1690 512.300) ‘48000 $8,408 $8,300 49.200 $3.00 $10,000 410400 810300 $11.20 $1 4ep00 $2408 43.300 4.200 $500 -f10,000 410400 $19,300 -$11 00 1 ‘48.000 $2,408 48.200 49.200 $5100 $10,000 410400 810300 $1100 $1 44epu0 -$2,408 45,300 4.200 -$5,<0 410,000 $4000 $10,300 411200 + 48/00 $5408 48.300 49.200 $5.00 -t41,000 410400 810.307-$1) 200-1690 412.300) $6,000 345,c00 $13,200 314.800 fie,<00 314.000 313.400 419,200 41.2800 442,960 4nZ000 ‘316-0 £55,900 415.500 15" 10e 314700 $18,900 $LsoE $13590 $80 160 $12,709 $0 $16,500 $16,200 $15.e08 $15400 $15,200 $L¢¢00 414.200 $13.80 $13,409 $00 Hlogma fia.awe diosv Sl2.uy SLeeue fis.zu0 $2s.e0 f13409 $0 0D HISTeDe 815400 SLS300 SLceno $1400 $488¢0 15.403 esegsserse $0 $2 MHD S150 s1300 fLeeos $1400 $4320 13,409 OB SIS Sicens $14200 SHIRKO S1RAM 0) MM Be eow $1400 $19060 sI5A409 0) Mf & fA HaDI0 Sega sis400 0 1 MM HHA 3.409 oo 8 BH om 8 mM fH Ham Fora given value of Q, multiplying the net income in the column by the probability of its ‘occurrence and summing overall values of x yields the following expected profits for each value of Q. Tapacted Pade Nuseber of Caronge Scheduled a ar a2 8 ff ff ww FE,c00 445509190 FTE 92,190,050 15,900 96770 FL S10 SNL.OND F077 Based on the results obtained, scheduling 29 castings for production yields the maximum expected profit of $11,050. ‘Showa below is the probability mass function for number of good castings produced (x), ‘based on Q castings scheduled for production.Answers to Problems at the End of Chapter 2 28 Igy = O/(1—dyey) = 10,000/0.92 = 10,870 units len = Q/I( diy. )(0 —dhy2)] = 10,000 /{(0.97)(0.90)] = 1,458 units ‘To ind the numberof units of the bottom cover to mold, well assum that it only goes through the inspection process once (1 duacdtac (1 diyadhins = (= diya) — dyoolnc yzhiya dpa) = (1 dape)dane = don ae 1 = dig) (1— dunce + (1— dynein a(t ~ dre Ine = O/(G ~dya}(1~ duge) + (= dupe) (One) = dow] Tac = 20,000/1(0,97)(0.90) + (0.90)(0.03)(0.25)] = 11,367 units, ‘Shown below isthe probability mass function for mumber of good castings produced (x), ‘based om Q castings scheduled for prosicion. Casto Ta 7a TOI —0s 0 O00 ao a 90 oo Oe 1/010 010 ox 00s 00s 5 8D 0D Om 30 OD | 00 019 01 095 005 995 ts om Om 9m OD 1 | O10 013 i O40 Ons Bas ts mp Oe 3m) OD D | 210 019 oi ate a1) G98 te Gos Os 30 aD mm [ota ois ti om tn min wi) oot ore ans ens m | olo 01s ots oi a1) oto om 01D ote 910 ts nu jou oo GW Ol om ow GID ote a0 aD n | o% 00 01 ai 019 O10 om 01D Of 90 HD n |om oo om ol ol oD 9m uD oe aD X | 590 00 om ooo O19 GIO bio O1D oie ND aD 3% |om on o@ oo om gio oD 01D o1e 90 CID % | 3m 00 b@ oo om Bm ots O05 Oe nin AID 2% | 090 00s ne ooo om m0 900 00D Om ats tos | om 00) o@ oo om OM 8m OOS Ome am tos ‘Shown below isthe matix of net income foreach combination of and x.Answers to Problems at the End of Chapter 2 27 ‘Before reduction: I Fu = SiQu/IHEcRa) 5.210. Thus, (4+ 25,2103/[(1F) (0.95)(0.98)) = 108,315.64/r1 After reduction: = Q. Fy = S.Q4/H ER] = 22.222. Thus, (4+ 22,222)/[(H1)(0.95)(0.98)) = 95,475.83/H It should be apparent that by reducing the serap percentage will reduce the number of ‘machines necessary. Assuming one 8 hour shift per day, 5 days per week, reducing the scrap percentage as indicated in Problem 2.21 would result in a reduction of 6 machines. ‘This could be a significant reduction in the floor space required 1a perform specific process. In addition, reduction of the inpat needed for a specific process may also reduce the amourt of storage space for raw materials/WIP. further reducing floor space requirements. For the facilities planner, space is ata premium, so-every advantage should be taken to either improve processes or select processes that produce less scrap. = oft F= SQ/EHR = [(1/4)(938)]/[(15/20)(7)(0.75)] = 4467 ~ 45 machines = 750/0,80 = 938 units (rounded to nearest integer) Alternatively, you cauld say that the loss of one hour per shift is a reduction in the reliability. Thus, the denominator would have the following: H= 8, R= 78. Let CA, CB, B. F, FA, IN, and M represent component A, component B, blanking. forging, final assembly, inspection, and machining, respectively. Let Osa= Amount of demand for spare parts of Component A = 1,000 units, and rx = Input needed for final assembly for Component A. Alli values are rounded to the nearest integer. ea = 2Opa/ (1 — dea) = 2(5,000/0.95) = 10,526 units Jen = (0s + Ipq)/[A= dy XC = dp) ~dg}] eq = (1,000 + 105526)/|(0.75)(085)(0.90)] = 20089 units Joa = Opa/ [C1 — deg) (1 —ayy)] = 5,000/[(0.95)(0.98)] = ty = [Og AMC — dg) — ds (1 — dg)(1 — dg) (1-42) TD ‘Where [xx siands forthe leat integer > x, 37 units Let BC, BY, CB, DA, IN, KP, and TC represent the bottom cover, battery cover, circuit board, disassembly. inspection, keypad, and top cover, respectively. In addition, let Max represent molding operations for specific components; Px represent painting operations {for specific components: and INx tepresent inspection stations in order of occurrence. AIL, values are rounded to the nearest integer. O/C = dyrre)(1 = dpre}] = 10,000/{(0.95)(0.95)] = 11,080 units xp = O/((1 = dhe) = dpxp)] = 10,000/{(0.98)(0.95)] = 10,741 unitsAnswers to Problems at the End of Chapter 2 26 1 setups occur more frequently, then additional machines might be required due to the Jost production time consumed by setups ALL, values are rounded to the nearest integer. Panta | is O,/{(1 dg) ~ d)C4 — 0) ~ dD) 15/000 /[(0.70)(0.85)(0.90}(0.00)] = 38,014 units Part Bly = 3+ 1g/(1— dy) DAI = JC — ds) Then, fy = (3+ 25,210) /0.70 5,000/((0.70)(0.85)] 108,043 units 5,210 PartC: Iz = O,/[(4 ~ d)(1 —dg)] = 15,000/((0.70)(0.75)] = 28,571 units Using the equations to solve Problem 2.20, we simply change the input values. Let ci, represeat the new scrap percentage. Far this solution, we are assuming the 5% reduction {cas follows: di = dy — 0.05. You could also view the problem statement as indicating that diy 0,95 * dy. AI, values are rounded to the nearest integer. Part A: hy = 15,000/1(0,75)(0,90)(0.95)(0.85)] = 27,520 units This represents a 21.4% reduction inthe input requirement. Part Be ly = 18,000/{(0.75) (0.90)] = 22,222 by= G +22,222)/0.75 = 88,888 units ‘This represents a 17.7% reduction inthe input requirement. PartC: lg = 15,000/{(075)(080)] = 25,000 units This represents a 12.5% reduction inthe input requirement. The opinion response will depend on the student. However. the response should look something like the following. Estimation Perspective: For most tacks that process designer may have to plan for there are likely to be many alternatives. The designer must be able to identify the issues ‘lated to each alternative and be able to generate an accurate estimate ofthe serap rate Even inthe case where there may be only a single alternative the ability to accurately estimate the scrap rate is of great significance. (Continuous Improvement Perspective: Being able to reduce the scrap produced by 2 process can be shawn to significantly reduce the input requirement to a process. ‘The value of His upto the student or instrucior. Any value will provide sufficient iflustration forthe follow-up opinion question. For the purposes of this solution, we will ascume His a variable valve and solve syrnbolicaly.aus Answers to Problems at the End of Chapter? 2s = (@hours/day](60 mins hour) (6 days/week) 880 mins week ‘We kaow that So, gaa /L) Ea IR 4) + QraSy2}/(ONE IRD Ey = (11423)(6)/[(2,880) 1.08) (0.98)] + (20,526) (3)/12,880)(0.90)(0.95)] F,=3187 = 32 machines Fe = Qo(Ss)/1(19(E5)(Ra)] = (11,080)(5)/[@2,880)(1.08)(0.98)] = 12.79 = 13 machines ‘AIL values ae rounded to the nearest integer. Ox/[1 = dye] = 100,000/0.97 Og/lC1 ~ dye)(1~ da) 100,000/1(097)(0.96)] = 107,388 units O¢/(C = de) = tg) (1 ~ da) 100,000/1(0.97)(0.96)(095)] 03993 units 13,040 units Oy/[1 — dye) = 200,000/0,97 = 206.186 units Oy / ~ dc)(A~ dya)] -200,000/1(0.97)(0.95)| = 217,037 units Oy/[C1 = aye)(4 = ya) (A= dyp)} 200,000/{(0.97)(0.95)(096)] = 226,081 units ‘Setup times are idetical for machines A, Band C fra panicular produc. The setup time for product X, regardless ofthe machine, is 20 mins: the Seup time for product Y is 40 mins, regardless ofthe mache. A eitical ece of information needed t determine the number of machines required isthe length of production rns between setups. Ifa Single seup is needed to produce the anual requrement of «product ona machine then the nimber of mactines required is determined as follows: pp _Ousiao4) | oas(ei7ea_ | 20440 A= TamraaoNGas) * Tas ravay as * TOKO By = 1512 + 164 + 0.00065 = 29.92 ~ 30 machines 0.25(107388) | _0.25(226,081) | _20+40 {@.30)(1600)(0.59) * (0.90)(1600)(030) * (6o)(1600} 0.72 + 17.4 + 0.00065 = 38.16 = 39 machines 0.15(103093) | _0.15(206,186) | 20+40 TS)(ABOO)CGBS) * (OHS) 1600) OSS) * TOYO) + 23:94-+ 00065 = 31.92 ~ 32 machines216 2u7 218 Answers to Problems at the End of Chapter 2 24 ‘We solve this problem working in reverse 1d Jl, 1 =:)C1 4); 2A dhy 1=a,)C4)A— ddl, 1p +04 = [1 ds) dy) + (1 dd ~ ddd, (L = dg)[(1 — de )(1 ~ dy) + dg) eh Jed Solving far 1) and substituting in the appropriste parameters, we have the following: 1, = 5,000/(0.90)[(0.95)(0.95) + (0.98)(0.95)(0.5)] 1 = 5,854 units (rounded ta nearest integer) [AIL], values rounded to the nearest integer. For machines 1,2, and 3 H = (16 hours /day)(60 mins/hour)(5 days/week) = 4,800 mins/week ‘Machine 4 operates for half of the amount of time as machines 1, 2, and 3. We know that k=Qe. So, QS.) /1ADEDR)] 5,854)(3)/{(4,800) (1)(0.95)] = 3.85 = machines (1-4), = 0.95(5,854) = 5,561 (5,561)(2)/ [(4,800) (0,95)(0.90)] 71 = 3 machines 0, /(1 ~ ds) = 5,000/0.90 = 5,556 units F, = 65,556)(5)/[(4,800) (1,02)(0,50)] = 63 = 7 machines 20; = 9405(0,95)(5,584) = 278 units (278}(10) /{(2400)(0,90}(0.95)] = 1.35 = 2 machines Running the rework operation om the same shift as the remainder ofthe cel would cause the machine fraction to reduce 100.68, or | machine. This may allow for the addition of the rework machine tothe cel ‘AIL values rounded to nearest integer. Let Al denote the fist step inthe production process, and A? denote the last step. Os/[(L— dg)(1 — da) — dP 10,000/{(0.95)(0.95)(0.97)] 1,423 units Similarly, Ig = 10,000/{¢0,953(0,97)] = 10,080 unitsAnswers to Problems atthe End of Chapter 2 23 Os © G4) ¥ A= dO = 4) + d= dA = 4,) + 4,0 = de ,000/[[0.93 + (08(0.07)][05 + (0.75)(0.05) [0.97 + (0460)(0.03)]} 1040 units “To find the rework cost we ned only the required input to each rework process. Thus 1.4) = 1040(0.03) = 31 units 1G) =d,) +4, =da,)] = 1,040(0.05)(0.988) Stunits 1 (@ )IG=d,) + 4, (1 ~ dg, IT 43) + dC — dea) 1,040(0,07)(0,988)(0,9875) = 71 units “Therefore the total rework cost = S2(1) + $3(S1) + $4(T1) =$499, ‘System w/Reversed Scrap Rates: Using the same derivation, we have the following: ,000/[10397 + (08)(0.03)][095 + (075)(0.05)]10.98 + (0.60)(0.07]] 48 units 41,048(0.07) = 73 units 1,048(0208)(0.972) = $1 units 1,049(0,03)(0,972)(0,9975) = 30 units “Therefore the total rework cost forthe system with the reversed scrap rates = $2(73) + S361) + $4630) = S419, ‘Based solely on the total rework costs ofthe two systems, the system with reverse scrap ses is prefered, which is consistent with the result of Problem 213. You should note, Ihowever, thatthe system with reversed scrap rates requires more input to the system to ‘ect the demand, All values are rounded tothe nearest integer. Js = Op/(1— dg) = 3,000/0.95 = 3,158 units Ik = Op/{(1—dg)(1—d4)] = 3,000/{0.95(0.98)] = 3,222 units F = Sa(Qq)/[(EQICHV(Ra)] + San) /ACEn)(HD(Rp)] + [30(Q4/500)]H 1H = 5 days/woek(18 hours/day)(60 min/hr) = 5,400 min/week F = 3G6,222)/((0.95)(6,400)(0.95)} + 5€3.158)/((0.95)(5.400)(0.90)] + [3003222 /5a0)1/5.400 F = 5439 © 6 milling machinesAnswers to Problems a the End of Chapter 2 22 snultiple bef paties, multiple slices of cheese, intermediate layer of bread. Likewise, the ‘cat submitted for a taco will vary depending on te ingredients included. Its important to verify thatthe student follows the steps described in Section 2.3. “The ascembly chart shows only the operations and inspections associated with the assembly ofthe product. The operation process chart includes all operations and inspections, fabrication and assembly operations and processing times, and purchased ruterials, 10-211 The soliton depends on the recipe chosen, ECTION 24 12 1, = 2000/((0.92)(0.95)(095)(0.97)} = 2483 enclosures (rounded to nearest integer) AS Given Sys: Gall valves are unde 1 the nearest integer) ,000/[0.93(0.95)(0.97)| = 1,167 units ,600/(0.03(0.95)] = 1,132 units 1000/0.93 = 1,075 units “The scrap values an serap costa each step ar as follows: Process 1,075 - 1,000 = 75 units > Serap Cost Process I: 1.167. 1.132 = 33 units — Scrap Cost fal Scrap Cont for given system = SIX69 ‘System w/Reversed Scrap Rates 1167 units 1,000/{0.97(0.95)] = 1.085 units 1, = 1,000/0.97 =" 1031 units “The scrap values and scrap cos at each step ate as follows Process 31,081 - 1,000 = 31 uits Scrap Cost= §15(31) Process 2: 1085 1,031 = 34 units —+ Serap Cost = $1054) Process I: 1167-085 = 82 units — Scrap Cost= §5(82) = Total Semp Cost forgiven system $1415 Duc tothe lower scrap cos the system with reversed serap sates would be prefered, which is consistent with the claim made ia Section 242. 14 For simplicity the rework operations ar indicated by RK. All, values are rounded tothe rarest integer. Given system: Following the derivation method given in Section 2.4.2.2. we have the ‘expression for I