Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Estimate the value of your improvement project given the following inputs; labor cost: $100000 per year burdened rate, $60000/year unburdened. 250 workdays per year, three
- Estimate the value of your improvement project given the following inputs;
- labor cost: $100000 per year burdened rate, $60000/year unburdened.
- 250 workdays per year, three shifts a day
- 40 hr work week
- The problem is scrapping 8% of the product
- The problem also creates 4% of product that is reworked to an acceptable condition.
- Production volumes 1200 per shift
- Cost to produce a good item: $255 ($100 material and $155 labor)
- Selling price: $315
- Rework adds $80 labor cost to each item reworked.
- Your goal is to remove half of the impact of the problem.
- You team involves 6 people.
- You plan 1.5 hrs of team meetings each week
- You expect the team members to spend one additional hour a week on the project.
- You expect to spend 20 hrs a week on the project (includes team meetings)
- You plan to finish in 3 months (13 weeks)
- Assume that you finish one week late and accomplished a 50% reduction in the problem. What is the first and second yearly savings for the company? Provide a next 12 month savings that account for the cost to solve the problem and the savings for the second 12 months without the cost to solve the problem.
- Estimate the CODND for the entire problem.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started