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.

1. 1. If it takes Volvo workers 40 hours to assemble a car in this way, what is the cycle time?
   2. How many stations are there?
   3. Analyze the pros and cons of the Volvo assembly system.
   4. Does the Volvo system constitute a synthetic flow shop?
   5. Volvo does not use this team assembly method for its U.S. plant. Why is that so?

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:

1. How complex is the character of the product line
2. Equipment associated with the process
3. Nature of the market
4. Financial situation of the firm
5. How many units are to be made or serviced
6. How profitable is the venture
7. What is the competition like