3. The pump manufacturer has $25 million in sales, with the annual cost of their goods sold at $1.8 million, and an overhead cost of $50 per square foot of floor space.

A) Determine the annual average inventory cost at the start and end of the project. What was the percentage reduction in inventory investment? (2)

B) Calculate the overhead cost saving as a result of floor space reduction. (1)

What different types of changes or innovations can be done for the Simplification process when integrating CIM? (2)

Describe some types of performance measures that should be done when implementing CIM. (2)

What criteria would you use in the selection of a fixed automation over a flexible automation cell? (1)