production and operations mangement, Business Management

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5. 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 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? Using the QMpom module called Capacity Management Models will facilitate solving Problem 5.

Question #2
5. Analyze the service process of making travel arrangements. Then draw a process chart for a travel agent setting up the itineraries and reservations for a business trip to be taken by two company executives who are traveling by air from Chicago to Los Angeles. Draw a process flow layout chart for the agent and the agency. Compare this to the booking on the internet.

Question#3
The alternative strategy (using information from problem 17) is to replace each bulb as it burns out. Replacement costs $5 per light bulb in addition to the $7 purchase cost per bulb. As noted in the previous problem, bulbs have an expected lifetime of 3,000 hours. Each light bulb in the subway remains lit, day and night, all year long, a total of 8,760 hours. The expected number of times each bulb will burn out per year is 2.9. For ease of calculation, round this off to 3 times per year that each light bulb is changed.

How does the service (setup and changeover) procedure used for racing cars differ from that of regular auto servicing? Is there anything that can be learned from the difference? What does this query have to do with SMED?

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