The following data apply to metal parts produced at Sunset Manufacturing's machine shop. The data are average values representative of the parts made at the respective single-station manned cells. The initial data provided is prior to the Kaizen event. Monthly demand is 18,000 pieces (for each part produced). The average cost per piece is R24; holding cost is 25% and changeover (setup) time for the presses is 228 minutes. The cost of downtime on any given press is R200/hr. Calculate: 3.1 The economic-order-quantity (EOQ) (Round up to the nearest hundred). 3.2 The total inventory cost (TIC) (Round up to the nearest number). (3) (2) The Kaizen event at Sunset Manufacturing yielded significant benefits with major improvements made as a result of the SMED workshop. As indicated in the case study, the change-over time at the respective single- station manned cells was reduced to 36 minutes. Calculate: 3.4 3.5 2 3.3 The EOQ for the change-over time of 36 minutes (Round up to the nearest hundred). The total inventory cost associated with this batch size (Round up to the nearest number). The savings in total inventory cost as a result of the reduction in change-over time. Sunset Manufacturing realizes that "...a more competitive organization... is vital to ensure the future growth of the business and further Kaizen events will create the necessary capacity for new business. An amount of R400,000 was made available with a target of 9 minutes in change-over time. Currently the respective single-station manned cells used to produce this part are also used to produce 9 other parts (10 in total) with similar usage and cost data (assume the data to be identical for purposes of this problem). Determine: 3.6 3.7 3.8 The EOQ for the change-over time of 9 minutes (Round up to the nearest hundred). The savings in total inventory cost (TIC) (compared to 3.2 above) as a result of the targeted improvement in change-over time of 9 minutes (show all calculations). How many months in savings are required to pay off the R250,000 investment? (3)