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Questions 9-11 In a simple four step manufacturing process, the scrap rates for processes 1.2. 3, and 4 are 3%, 4%, 5%, and 5% respectively. The demand is 1000 good parts per shift (8-hr shift). Assume the scrap costs for processes 1, 2, 3, and 4 are $5 $6, $7, and $10 respectively. The standard times for processes 1, 2, 3, and 4 are 5, 6, 8, and 10 min respectively 9. What is the required input to the first process to meet this demand? 10. What is the total scrap cost for this manufacturing system? 11. Find the number of machine fractions (do not round) needed per shift (8-hr shift) for each process. Assume 80% efficiency and 90% reliability for each process.

9)
Input to process 4 = 1000/(1-5%) = 1052.6
Input to process 3 = 1052.6/(1-5%) = 1108
Input to process 2 = 1108/(1-4%) = 1154.2
Input to process 1 = 1154.3/(1-3%) = 1190
Required input to the first process to meet this demand = 1190
10)
Scrap out of process 1 = 1190*3% = 35.7
Scrap out of process 2 = 1154.3*4% = 46.2
Scrap out of process 3 = 1108*5% = 55.4
Scrap out of process 4 = 1052.7*5% = 52.64
Total scrap cost = 35.7*5 + 46.2*6 + 55.4*7 + 52.64*10 = $ 1370
11) Machines needed for process 1 = (1190 units * 5 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 17.22
Machines needed for process 2 = (1154.3 units * 6 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 20.04
Machines needed for process 3 = (1108 units * 8 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 25.65
Machines needed for process 4 = (1052.7 units * 10 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 30.46
 
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