1. What is the most cost-effective allocation of the parts to the press

machines?

2. How does the optimal solution compare with the current allocation?

3. What costs, other than the shot and shift costs, are involved?

4. Can other types of data help refine the decision?

5. Can standardization help control certain costs related to this case?

6. While implementing the cost effective model, what considerations and

cautions are relevant to the

human relations in the stamping shop?

All the necessary calculations have to be made in excel. However, you have

to transfer the tables in excel, where you will also explicitly explain the

methodology and the variables used.

9B16D022 EXHIBIT 1: AVERAGE CHANGEOVER TIME IN PRESS MACHINES Changeover Shift cost Shot cost Presstime (sec) M1 M2 M3 M4 M5 M6 1,125 4,500 1.425 1,075 1,075 1,500 15.00 15.00 15.00 5.00 15.00 15.00 (US$) 0.29 0.65 0.52 0.39 0.39 0.58 Source: Created by the authors EXHIBIT 2: THE STAMPING PROCESS Steel coil from supplier Flat product blank Body panel SHEARING STAMPING Source: Created by the authors