Manufacturing and Service Problems

Topics: Manufacturing, Mass production, Production and manufacturing Pages: 4 (681 words) Published: February 8, 2015
Carolyn Watson
September 13, 2014
Week 3 – Manufacturing & Service Problems

Manufacturing & Service Problems

Problem #1:
For each of the following variables, explain the differences (in general) as one moves from a workcenter to an assembly line environment (Jacobs & Chase, 2011). a. Throughput time (time to convert raw materials into product) – During the manufacturing process which is considered as the workcenter (e.g. job shop) that usually involves a specialist who does a specific job or set of similar jobs. In this phase, a product generally undergoes a lesser number of changes over time, thus taking more throughput time in the workcenter. In this case, the finished product is not produced during this stage, but specific jobs are performed with minimum time requirements before reaching the assembly line phase. However, once a product reaches the assembly line phase, the throughput time is usually much higher as it assembles all the components to make the finished product. b. Capital/labor intensity – During the manufacturing process, labor intervention is somewhat limited, in that case a specific job is done - but only those that require manual labor units are at work. However, in an assembly line environment, the capital tends to be high granted that the number of machineries that are being installed are also high when performing specific tasks.

c. Bottlenecks – During the manufacturing process, bottleneck points are somewhat limited in the workcenter environment since performance is limited to specified task allocated to them. However, in an assembly line environment performance is limited as per the process or the method of producing a final product.

Problem #2:
A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. What is the break-even point? Formula: total fixed costs/unit price to customer – variable costs per unit $300,000/$23 - $8 = $300,000/$15 = 20,000 units...
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