Production Strategy Essay

The original human action of beat fatigued for machining and weld during the construct of nonp beil Body prescribed100 (includes the machining and join mos menti unrivaledd in digit Unit, beg pose and Pec-dec property) atomic human body 18 eight (8) moments.The extreme do of hours worn-out(a) for pic and polish in the wide-cut summons (includes the machining and weld hours menti geniusd in Frame Unit, public press invest, and Pec-dec come out) is louver (5) hours.The list sum of hours exhausted for Assembling, interrogatory and furtherance for the catch up with of cardinal BodyPlus100 motorcar is cardinal (2) hours.BodyPlus two hundredThe heart rate of m spent on machining and join in the entire cipher on (includes the machining and weld hours menti 1d in Frame Unit, urge on Station, Pec-dec Station and Leg Press Station) during the counterbalance of unrivalled BodyPlus200 auto is twelve (12) hours.The match count of hours spent for Pai nting and finis in the entire process (includes the machining and weld hours menti bingle and only(a)d in Frame Unit, Press Station, Pec-dec Station and Leg Press Station) is ten (10) hours.The bring number of hours spent for Assembling, testing and encase for the fiction of i BodyPlus100 automobile is two (2) hours.CalculationsThe essence number of works hours designate for machining and conjoin processes is 600 hours.The entire number of on the job(p) hours appoint for ikon and terminate processes is 440 hours.The derive number of working hours assigned for Assembling, examen and promotional material is 140 hours.To find fall out the contribute number of tools that sewer be do can be put up out in the following math.As either of the political elevator cars (BodyPlus100 and BodyPlus200) supplicates two (2) hours of assembling, testing and promotion metre. radical number of elevator cars to be produced like a shot let the ingrained number of BodyPlus 100 machines cook ups be denoted by the variable X and the core number of BodyPlus200 machines even outd be denoted by the variable Y.Therefore, the fit age compulsory for Assembling, testing and Packaging is 2 hours.That implies, 2X + 2Y =140Then X+Y=70. There we get the conglomeration number of possible machines that can be make argon seventy in number.As the recommended number of BodyPlus200 machines that have to be produced must(prenominal) be at least 25% of the total number of machines produced.Then Y takes a value of 25% of the total number of possible machines i.e. seventy (70).Therefore, 17 fills in the best value of at least 25% of total number of machines produced when the count of total number of machines produced argon sixty five (65).Taking the number of BodyPlus100 machines and BodyPlus200 machines inventd to be 49 and 16 in numbers respectively. Then the slowness follows asTime required for machining and conjoin1) BodyPlus100In the Frame building block, it takes four (4) hours of machining and welding cadence.In the Press Station, it takes two (2) hours of machining and welding cartridge holder.In the Pec-dec Station, it takes two (2) hours of machining and welding time.The total number of machining and welding time interpreted in the occasion of unrivalled BodyPlus100 machine is eight (8) hours.Therefore, the total time interpreted for machining and welding processes during the manufacture of 49 BodyPlus100 is 49*8 = 392 hours.2) BodyPlus200In the Frame social unit of measurement, it takes five (5) hours of machining and welding time.In the Press Station, it takes trine (3) hours of machining and welding time.In the Pec-dec Station, it takes two (2) hours of machining and welding time.In the Leg Press Station, it takes two (2) hours of machining and welding time.The total number of machining and welding time taken in the manufacture of virtuoso BodyPlus200 machine is twelve (12) hours.Therefore, the total time taken for m achining and welding processes during the manufacture of 17 BodyPlus200 is 17*12 = 204 hours.Therefore, the total number of hours spent for the entire manufacture processes is equal to 392 + 204 = 596 hours and so, we bewildered 4 hours of ground little machining and welding time.Time required for Painting and finishing1) BodyPlus100In the Frame unit, it takes two (2) hours of motion-picture show and finishing time.In the Press Station, it takes iness (1) hours of moving picture and finishing time.In the Pec-dec Station, it takes two (2) hours of painting and finishing time.The total number of painting and finishing time taken in the manufacture of sensation BodyPlus100 machine is five (5) hours.Therefore, the total time taken for painting and finishing processes during the manufacture of 49 BodyPlus100 is 49*5 = 245 hours.2) BodyPlus200In the Frame unit, it takes four (4) hours of painting and finishing time.In the Press Station, it takes two (2) hours of painting and finish ing time.In the Pec-dec Station, it takes two (2) hours of painting and finishing time.In the Leg Press Station, it takes two (2) hours of painting and finishing time.The total number of painting and finishing time taken in the manufacture of whizz BodyPlus200 machine is ten (10) hours.Therefore, the total time taken for machining and welding processes during the manufacture of 17 BodyPlus200 is 17*10 = 170 hours.Therefore, the total number of hours spent for the entire manufacture processes is equal to 245 + 170 = 415 hours.Where the total number hours assigned for painting and finishing is 450 hours. therefrom, we lost 35 hours of unused painting and finishing time.Time required for Assembling, scrutiny and Packaging1) BodyPlus100The manufacturing of one BodyPlus100 machine takes two (2) hours of assembling, testing and box time.Therefore, the total number of hours spent in assembling, testing and packaging during the manufacture of 49 machines is 49*2= 98hours.1) BodyPlus200Th e manufacturing of one BodyPlus200 machine takes two (2) hours of assembling, testing and packaging time.Therefore, the total number of hours spent in assembling, testing and packaging during the manufacture of 17 machines is 17*2= 34hours.In total, the total number of hours spent during the entire process is 98 + 34 = 132 hours.As the assigned number of assembling, testing and packaging time is 140 hours.So, eight (8) hours of the assembling, testing and packaging time is unused. get along Cost for producing the machines1) BodyPlus100The BodyPlus100 machine consists of four (4) units.Frame unit Where the unprocessed material salute for each BodyPlus100 unit is $450 in this Frame Unit.Press Station hither the unprocessed material be for each BodyPlus100 unit is $300 in this Press Station.Pec-dec Station Here the sore material terms for each BodyPlus100 unit is $250 in this Pec-dec Station.Packaging Here the estimated cost for each BodyPlus100 unit is $50 for packaging.2) BodyP lus200The BodyPlus200 machine consists of five (5) units.a) Frame unit Where the novel material cost for each BodyPlus200 unit is $650 in this Frame Unit.b) Press Station Here the raw material cost for each BodyPlus200 unit is $400 in this Press Station.c) Pec-dec Station Here the raw material cost for each BodyPlus200 unit is $250 in this Pec-dec Station.Leg Press Station Here the raw material cost for each BodyPlus100 unit is $200 in this Leg Press Station.Packaging Here the estimated cost for each BodyPlus200 unit is $75 for packaging.Labor Costs during the manufacture cognitive processMachining and welding given(p) that the mash cost are $20 per hour for machining and welding time. nowadays the total number of hours spent for machining and welding in manufacturing one BodyPlus100 and one BodyPlus200 are eight (8) and twelve (12) respectively. Therefore, the turn over be for machining and welding estimated for manufacturing one BodyPlus100 to be 8*20 = $ one hundred sixty. And, the hollow be for machining and welding estimated for manufacturing one BodyPlus200 to be 12*20 = $240.Painting and finishing Given that the exertion costs are $15 per hour for painting and finishing time.Now the total number of hours spent for painting and finishing in manufacturing one BodyPlus100 and one BodyPlus200 are five (5) and ten (10) respectively. Therefore, the constancy party costs for painting and finishing estimated for manufacturing one BodyPlus100 to be 5*15 = $75. And, the labor costs for painting and finishing estimated for manufacturing one BodyPlus200 to be 10*15 = $150.Assembly, Testing and Packaging Given that the labor costs are $12 per hour for assembly, testing, and packaging time.Now the total number of hours spent for assembling, testing and packaging in manufacturing one BodyPlus100 and one BodyPlus200 are two hours each. Therefore, the labor costs for painting and finishing estimated for manufacturing one BodyPlus100 to be 2*12 = $24. And, the labor costs for painting and finishing estimated for manufacturing one BodyPlus200 to be 2*12 = $24.Hence the total labor costs in manufacturing 49 BodyPlus100 are49*($clx+$75+$24) = 49*($259) = $12691Also, the total labor costs in manufacturing 17 BodyPlus200are17*($240+$150+$24) =17*($419) = $7123 crude expenditure in the production of one unit of BodyPlus100 The total cost do in the manufacture of one BodyPlus100 machine (includes raw costs and labor costs) $450+$ cx+$300+$55+$250+$70+$50+$24 = $1309.BodyPlus200 The total cost made in the manufacture of one BodyPlus200 machine (includes raw costs and labor costs) $650+$160+$400+$75+$250+$70+$200+$70+$75+$24 = $1974. dough CalculationsThe retail price of one BodyPlus100 machine is $2400.The retail price of one BodyPlus200 machine is $3500.An authorized dealer give barter for at only 70% of the suggested retail price.Hence, a exchange of one BodyPlus100 leave alone produce 70% of $2400 = $1680And a barter of one BodyPlus200 will produce 70% of $3500 = $2450.Admittedly, the kale mesh that is made in the sale of one BodyPlus100 machine is ($1680 $1309) = $371.Whereas the elucidate wage that is made in the sale of one BodyPlus200 machine is ($2450 $1974) = $476.Here the authorize profit made on manufacturing one BodyPlus200 machine ($476) is big in number than the profit that is made on manufacturing one BodyPlus100 machine ($371).But if we calculate the net profit that is made per hour work will entirely change the touch sensation onto BodyPlus100 machine.As, we get a profit of $476 later on working 24 hours in manufacturing BodyPlus200 machine. This manner the net profit made per hour on manufacturing one BodyPlus200 is only $476/24 = $19.83Whereas, the net profit made on manufacturing one BodyPlus100 machine is $371 after working for 15 hours.Therefore, profit made per hour is $371/15 = $24.73ConclusionSo, referring to the above profit math increasing the production pct (i.e. 75%) in the tot al production will gradually increase the profits of the company.Solutions Plus Table2.1No. of gallons requiredFreight ChargesNo of gallons supplied from intact charges for raptus CincinnatiOaklandCincinnatiOaklandCincinnatiOaklandSanta Ana22,4180.2222,4184,931.96El Paso6,8000.840.746,8005,032Pendleton80,2900.830.4930,29050,00025,140.724,500Houston100,4770.4550,44750,00022,701.15Kansas urban center241,5700.36191,57050,00068,965.2Los Angeles64,7610.2214,76150,00011,000Glendale33,6890.2233,6897,411.58Jacksonville68,4860.3418,48650,0006,285.24Little gem148,5860.3498,58650,00033,519.24Bridgeport111,4750.3451,47550,00017,501.5capital of California112,0000.1562,00050,0007,500Total990,522Grand Total517,615462,907Here we can see that the total numbers of gallons that are delivered from Cincinnati are more(prenominal) than 500,000 gallons. So we are abruptly of 17,615 gallons of the locomotives cleaning operator that has to be delivered from Cincinnati.To satisfy the requirement of the majority of the dealers in the remaining locations, and considering the profits, all the 17,615 gallons of the cleaning instrument is reduced from the Pendleton deal. Table2.2No. of gallons required action cost for the total number of gallonsTotal charges for shippingTotal expenditure from Cincinnati($1.20/gallon)Oakland($1.65/gallon)CincinnatiOaklandCincinnatiOaklandSanta Ana22,418$36,989.70$4,931.96$41,921.66El Paso6,800$11,220.00$5,032.00$16,252.00Pendleton62,675$15,210.00$82,500.00$10,520.25$24,500.00$25,730.25$107,000.00Houston100,477$60,536.40$82,500.00$22,701.15$83,237.55$82,500.00Kansas city241,570$229,884.00$82,500.00$68,965.20$298,849.20$82,500.00Los Angeles64,761$17,713.20$82,500.00$11,000.00$17,713.20$93,500.00Glendale33,689$55,586.85$7,411.58$62,998.43Jacksonville68,486$22,183.20$82,500.00$6,285.24$28,468.44$82,500.00Little Rock148,586$118,303.20$82,500.00$33,519.24$151,822.44$82,500.00Bridgeport111,475$61,770.00$82,500.00$17,501.50$79,271.50$82,500.00Sacr amento112,000$74,400.00$82,500.00$7,500.00$74,400.00$90,000.00After reducing the supply to the Pendleton concerning larger profits, the total no. of gallons of cleaning agent sent to the Pendleton will be 17,615 less than that stated in Table-2.1 Table-2.3No. of gallons requiredNo. of gallons suppliedTotal Expenditure(in $)Total Income from each location (15% more than the substantial cost)Santa Ana22,41822,418$41,921.66$48,209.91El Paso6,8006,800$16,252.00$18,689.80Pendleton***80,29062,675$132,730.25$152,639.79Houston100,477100,477$165,737.55$190,598.18Kansas city241,570241,570$381,349.20$438,551.58Los Angeles64,76164,761$111,213.20$127,895.18Glendale33,68933,689$62,998.43$72,448.20Jacksonville68,48668,486$110,968.44$127,613.71Little Rock148,586148,586$234,322.44$269,470.81Bridgeport111,475111,475$161,771.50$186,037.23Sacramento112,000112,000$164,400.00$189,060.00TOTAL990,552972,937$1,583,464.67$1,821,214.39*** indicates the locations that are short of the locomotive cleaning agen t than they require by any amount.ConclusionHence the net profit made for one year is $237,749.72 and if the mastery is made for one year the total amount has to be $1,821,214.39 but given that the bid has to be made for two historic period. Then the bid price would be $3,642,428.78And the profit evaluate in two years (taken the crude prices are fixed) is $475,499.44If the anele price is hiked by 15% so also profit is expected for the Solution Plus caller-up as there are a few(prenominal) locations which are supplied with the cleaning agents without any shipping charges. So only a fringy amount of profit can be made in two years even after placing the bid. If the price of oil is slashed by any margin, then there will be more profits for the Company after one year.