(Solved Homework): 3. Parries Confectionery Company is considering the introduction of a new toffee. It requires four…

Facilities design: product and equipment analysis. Please show all calculations and work please

3. Parries Confectionery Company is considering the introduction of a new toffee. It requires four processes: A, B, C, and D in sequence. The equipment required for each process is available in the company now and is dedicated to the production of another type of candy. Although some capacity is available on all the equipment types, management is not sure whether they need to buy additional pieces. To aid management in decision making, the following information is available: (a) The four pieces of equipment-one for each type-are available 50% of the time. (b) The company operates one shift per day (8 hours) and 250 days per year. TABLE 2.5 Production Data for Mediquip Co, Inc, in Exercise 9 Part Name: Handle Oper Code 10 20 30 40 Machine Code 2053 1226 3029 3007 Machine Name Lathe Drill Knurl Buff Prepared by SSH Required Output 103 100 100 100 Scrap Rate (%) 12 10

Ans: Availability of each equipment = 8×50% = 4 hours per day.

Set up time for A = 1800 sec = 1800/60 =30 min.

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Available time with A = 3:30 min. = 210 min. = 210×60 sec. = 12600 sec.

Production time for one unit at A = 25 sec.

No. of units A can produce = 12600/25 =504

Scrap rate is 10% so effective toffees produced = 504x( 1-0.1) = 453

No. of toffees produced per year at A = 453×250 = 113250

No. of units needed to produce 1000000 toffees = 1000000/113250 = 8.83 =9

So the company should purchase 8 more untis of A.

Similarly, time available at B = 240 – 45 = 195 min. = 195×60 =11700 sec.

No. of toffees can be processed at B = 11700/4 =2925 per day

Scrap is 5% so the available toffees = 2778

Time available at C = 240-10 = 230 min = 230×60 =13800 sec.

No. of toffees can be processed at C = 13800 / 2 =6900

Scrap is 1% so effective toffees = 6831

Time available at D = 240-1000/60 = 223.3 min = 223.3×60 sec =13400 sec.

No. of toffees that can be processed at D = 13400/ 4 = 3350

Scrap is 1% so effective toffees = 3350 x0.99 = 3316

Now, toffees to be processed pepr day to meet the target = 1000000/250 = 4000 per day.

For this we need followingn nno. of machines

A = 9 units

B = 4000/ 2778 = 1.43 =2 units

C = 4000/ 6831 =0.58 = 1 unit

D = 4000/ 3316 =1.20 = 2 units

Hence the company has to buy 8 units of A and one each of B and D.

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