1. The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000. It has been calculated to be $150,000 in Kentucky. The hourly cost at a workstation is $60 in New Jersey and $40 in Kentucky. How do the two plants compare with respect to the cost of labor for making a car? For each location, what is the breakeven volume and what is the total cost at breakeven?
2. An interesting comparison can be drawn between the Volvo method of building autos in Sweden and that of the U.S. auto companies. Specifically, the Volvo Company has pioneered a team approach for assembling auto. The Volvo team builds the car on a platform. Event he engine is put together by the same team and mounted on the chassis. This means that the workers come to the work instead of the work coming to the workers.
3. Define and compare the six basically different ways of doing work in terms of the seven factors listed here. Each kind of process (i.e., one of the six types of work configurations) is best suited to a particular set of conditions. These conditions arise from factors such as the following: