Borealis. Inc. manufactures special heavy bolts used in spacecraft. The production process consists of the following operations:
Question:
Borealis. Inc. manufactures special heavy bolts used in spacecraft. The production process consists of the following operations: ( 1 ) metal rods are cut to the proper length in a cutting machine; (2) a heading machine flattens the end of the cut rod to form a head; (3) a slotting machine cuts a slot in the bolt*s head;
(4) the bolt is run through a threading machine, which cuts the bolt's threads; (5) the bolt is washed to remove metal shavings and other foreign particles: (6) the bolt is heat-treated for hardness in a salt bath;
(7) the bolt is inspected: (8) the bolt is wrapped and packaged.
The salt bath is a very expensive operation because of the electricity requirements. Another expensive operation is the central oil-filtration system, which is used to provide oil to all of the cutting and threading machines. The oil acts as a lubricant and coolant. After passing through a cutting machine, the oil is pumped back to a central oil-filtration station, which filters foreign particles from the oil.
Required:
1. Draw a factory-layout diagram showing how a traditional layout of Borealis's production process might appear.
2. Repeat requirement (1). assuming that Borealis has adopted a JIT production system and purchased an FMS and an AMHS. Assume that only one central salt bath will be used, and that the company will keep its centralized oil-filtration system.
Step by Step Answer:
Managerial Accounting Creating Value In A Dynamic Business Environment
ISBN: 9780071113144
6th Edition
Authors: Ronald W Hilton