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PROBLEM 1: An industrial engineer has designed two alternative methods for accomplishing a production job. Both methods involve the acquisition of the same working
PROBLEM 1: An industrial engineer has designed two alternative methods for accomplishing a production job. Both methods involve the acquisition of the same working place and other capital equipment to be used for this job only. METHOD A: Calls for a crew consisting of three men each costing Php. 30.00 per hour. This method will result in the production of 10 units per hour of which two will be rejected. 10 points for the analysis. METHOD B: Calls for a crew of two men each costing Php. 35.00 per hour and should result in the production of 8 units per hour of which 1 will be rejected. 10 points for the analysis. The cost of the direct materials lost in each reject is Php. 20.00. If a certain total number of units is to be produced, find which method is not economical. 5 points for final analysis.
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