MAC3703/Assignment 2/2022 QUESTION 2 (12 marks) PKZ (Ltd) has prepared the network diagram for the manufacturing...

Transcribed Image Text:

MAC3703/Assignment 2/2022 QUESTION 2 (12 marks) PKZ (Ltd) has prepared the network diagram for the manufacturing process of each car they manufacture. The CFO wants to minimise the cost of production by shortening the manufacturing process of the car. He has asked you, the management accountant, to review the car manufacturing network diagram below and to shorten the process. The following paths have been identified on the network diagram for manufacturing a car: ABFH = 20 days ACEFH 25 days ADEFH = 28 days ADGH = 22 days The direct labour cost to manufacture the car is R1 000 per day. PKZ has estimated the manufacturing activities, accelerated times, and cost slopes as follows: Activity Normal time Accelerated Cost slope (days) time (R per day) (days) A-B 5 4 900 B-F 9 7 500 F-H 6 3 960 A-C 5 3 700 C-E 6 5 1 350 E-F 8 7 1 200 A-D 7 5 930 D-E 7 4 920 D-G 6 4 1 010 G-H 9 8 1 200 REQUIRED: a) Identify the critical path from the identified paths on the network diagram (2 marks) b) Calculate the most effective manufacturing plan if the project is accelerated. (10 marks) (Total 12 marks) 5 MAC3703/Assignment 2/2022 QUESTION 2 (12 marks) PKZ (Ltd) has prepared the network diagram for the manufacturing process of each car they manufacture. The CFO wants to minimise the cost of production by shortening the manufacturing process of the car. He has asked you, the management accountant, to review the car manufacturing network diagram below and to shorten the process. The following paths have been identified on the network diagram for manufacturing a car: ABFH = 20 days ACEFH 25 days ADEFH = 28 days ADGH = 22 days The direct labour cost to manufacture the car is R1 000 per day. PKZ has estimated the manufacturing activities, accelerated times, and cost slopes as follows: Activity Normal time Accelerated Cost slope (days) time (R per day) (days) A-B 5 4 900 B-F 9 7 500 F-H 6 3 960 A-C 5 3 700 C-E 6 5 1 350 E-F 8 7 1 200 A-D 7 5 930 D-E 7 4 920 D-G 6 4 1 010 G-H 9 8 1 200 REQUIRED: a) Identify the critical path from the identified paths on the network diagram (2 marks) b) Calculate the most effective manufacturing plan if the project is accelerated. (10 marks) (Total 12 marks) 5