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Assignment 1 Part I Productivity Problem George makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity per year. Last Year Now Units produced 1000 1000 Labor (hours) 300 275 Resin (pounds) 50 45 Capital invested ($) 10000 11000 Energy (BTU) 3000 2850 1. Show this year's the productivity for labor hours. (10pts) 2. Determine the productivity percentage change (improvement) for labor-hours. (5 pts) 3. If George's costs are as follows: Labor: $10 per hour Resin: $5 per pound Capital expense: 1% per month of investment Energy: $.50 per BTU Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. (10 pts) Part II Discussion Questions of House of Quality 1. Explain the main components of a House of Quality. (5 pts) 2. Explain how the House of Quality translates costumer desires into product/service attributes. (5 pts) Part III Life cycle ownership costs Hybrid H Purchase Cost $17,000 Useful life 15 yrs Hybrid T $19,000 15 yrs Miles per Year 14,000 miles 14,000 miles Miles per Gallon 32 Average Fuel Price per Gallon $3.75 Operating Cost $0.12/mile 35 $3.75 $0.12/mile 1. Given the above cost parameters, what is the total vehicle life cycle cost of this hybrid car H? (10 pts) 2. What is the break-even point in miles between the hybrid vehicle H and T? (10 pts) 3. Given the break-even mileage in the previous question, what is the payback period in years? (5 pts) Part IV Capacity Management TS Manufacturing Corp. has the process displayed below. The drilling operation occurs separately from and simultaneously with the sawing and sanding operations. The product only needs to go through one of the three assembly operations (the assembly operations are \"parallel\") a) Which operation is the bottleneck? (10 pts) b) What is the throughput time for overall system? (10 pts) c) If the firm operates 8 hours per day, 20 days per month, what is the daily capacity of the manufacturing process? (10 pts) d) What is the efficiency of Welding? (10 pts)