Solved: Azari Inc has just created five order fulfillment

value stream
Azari Inc has just created five order fulfillment value stream

Azari, Inc. has just created five order fulfillment value streams, two focused and three that
produce multiple products. The size of the plant in which the values streams are located is
150,000 square feet. The facility costs total $900,000 per year. One of the focused value
streams produces a deluxe MP3 product. The MP3 value stream occupies 10,000 square feet.
Not counting facility costs, the MP3 value stream costs total $2,400,000. There are 30,000 MP3
units produced annually. There were not sufficient quality personnel for each value stream;
thus, the MP3 stream had to share a quality engineer who spends 40 percent of his time with
the MP3 value stream and the other 60 percent with two other value streams. The salary of the
quality engineer is $75,000 per year. Dawna Taylor, an industrial engineer, is one of two
employees assigned completely to the value stream from production planning. Dawna has not
been with the company as long as the other production engineer. Because of the demand-pull
nature of the new value stream, only one production planner is needed.

Required:
1. Explain how the value stream costs of $2,400,000 were most likely assigned to the MP3
value stream. Explain how facility costs will be treated and why.
2. How many employees are likely to be located within the MP3 value stream?
3. Given that only one production planner is needed, what should the company do with its extra
engineer (Dawna Taylor)?
4. Calculate the unit product cost for the MP3 value stream. Comment on the accuracy of this
cost and its value for monitoring value stream performance.

Azari Inc has just created five order fulfillment value stream

ANSWER
https://solvedquest.com/azari-inc-has-just-created-five-order-fulfillment-value-stream/

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