A company manufactures particle boards in a production facility. With recent increases in input costs, the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company manufactures particle boards in a production facility. With recent increases in input costs, the company has implemented new machines that lower raw material waste and reduce en- ergy consumption. The new machines also have improved automation and therefore lower the labour requirements for the same level of production. The company believes that if a 3% improve- ment productivity (with respect to each input) is achieved it will offset the increased raw material costs. The company calculated the following information Boards produced Labour (hours) Wood chips (kg) Resin (kg) Energy (kWh) Labour cost ($/hour) Wood chips cost ($/kg) Resin (S/kg) Energy (S/kWh) LAST YEAR 10,000 16,000 10,750 500 30,000 20.00 15.15 3.50 0,09 CURRENT YEAR 10,000 15,250 10,150 470 28,500 21.50 15.35 3.55 0.10 a. Evaluate the productivity of boards per each of the four manufacturing inputs (labour, wood chips, resin and energy) for each year. Do the separate measures indicate a 3% improvement? b. Evaluate the same productivity measures as in step (a) but in terms of monetary cost. Is the 3% improvement (for each input) still present? c. Calculate the multi-factor (boards per cost of all inputs) productivity improvement. Is the ultimate goal of offsetting rises in input costs achieved? d. A significant investment was made to acquire the new machines. Engineers believe that further improvements can still be made. In which area (labour use, wood chip or resin waste, energy usage) should the company concentrate future investment towards improvement? A company manufactures particle boards in a production facility. With recent increases in input costs, the company has implemented new machines that lower raw material waste and reduce en- ergy consumption. The new machines also have improved automation and therefore lower the labour requirements for the same level of production. The company believes that if a 3% improve- ment productivity (with respect to each input) is achieved it will offset the increased raw material costs. The company calculated the following information Boards produced Labour (hours) Wood chips (kg) Resin (kg) Energy (kWh) Labour cost ($/hour) Wood chips cost ($/kg) Resin (S/kg) Energy (S/kWh) LAST YEAR 10,000 16,000 10,750 500 30,000 20.00 15.15 3.50 0,09 CURRENT YEAR 10,000 15,250 10,150 470 28,500 21.50 15.35 3.55 0.10 a. Evaluate the productivity of boards per each of the four manufacturing inputs (labour, wood chips, resin and energy) for each year. Do the separate measures indicate a 3% improvement? b. Evaluate the same productivity measures as in step (a) but in terms of monetary cost. Is the 3% improvement (for each input) still present? c. Calculate the multi-factor (boards per cost of all inputs) productivity improvement. Is the ultimate goal of offsetting rises in input costs achieved? d. A significant investment was made to acquire the new machines. Engineers believe that further improvements can still be made. In which area (labour use, wood chip or resin waste, energy usage) should the company concentrate future investment towards improvement?
Expert Answer:
Answer rating: 100% (QA)
a Last year the company produced 10000 boards with 16000 hours of labor 10750 kg of wood chips 500 k... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these accounting questions
-
It takes 15 kWh (kilowatt hours) of electrical energy to produce 1.0 kg of aluminum metal from aluminum oxide by the HallHeroult process. Compare this value with the amount of energy necessary to...
-
It takes 15 kWh (kilowatt-hours) of electrical energy to produce 1.0 kg of aluminum metal from aluminum oxide by the HallHeroult process. Compare this to the amount of energy necessary to melt 1.0 kg...
-
A box beam is constructed of four wood boards as shown in the figure part (a). The webs are 8 in. x 1 in. and the flanges are 6 in. x 1 in. boards (actual dimensions), joined by screws for which the...
-
Refer to Table 2.3, in which data on EPS, DPS, and PPS for JNJ, Merck, and S&P 500 during the period 19882009 are given. Table 2.3 Please calculate the standard deviation for EPS, DPS, and PPS for...
-
The cantilever shown in the figure consists of two structural-steel channels size 3 in, 5.0 lbf/ft. Using superposition, find the deflection at A. Include the weight of thechannels. 150 lbf 5 lbflin
-
Steady-state operating data for a simple steam power plant are provided in Fig. P4.102. Stray heat transfer and kinetic and potential energy effects can be ignored. Determine the (a) thermal...
-
Six different settings are tried on a machine to determine whether any of them will reduce the proportion of defective parts. For each setting, an appropriate null hypothesis is tested to determine...
-
Relevant-cost approach to pricing decisions. Stardom, Inc., cans peaches for sale to food distributors. All costs are classified as either manufacturing or marketing. Stardom prepares monthly...
-
Calculate the Holding Period Return for an investment purchased at $155.20 and sold at $184.39. Assume no additional dividends during the holding period.
-
Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short-term segment, which rents for an average of 0.5 week, and the medium-term segment,...
-
Describe in detail the decision making strategies and factors a mobile telecommunications company will consider when terminating or laying off its employees.
-
Write a java program to find out Fibonacci series of a given number?
-
A crude approximation of a water molecule is as three point charges of charge +e, +e, and -2e representing the hydrogen and oxygen atoms, respectively, with a bond angle of 104.5" and a distance...
-
Assume you were the fraud investigator in the case of KEVIN CHIU, a former business relationship manager at a financial institution headquartered in Manhattan where he was charged with stealing...
-
What are some of the key issues and questions that need to be addressed during mergers and acquisitions? How do firms handle the business valuation of an acquisition? Include your own experience as...
-
How does the organizational culture facilitate or hinder the adoption of new technologies and digital transformation, and what practices encourage a culture of continuous learning and adaptation ?
-
Suppose that you are a manager for Adobe Systems, the creator of Photoshop and other software products. Adobe rents most of its products to its customers. Suppose that it has two classes of customers...
-
Is times interest earned meaningful for utilities? Why or why not?
-
The Lancaster Chamber Orchestra is a small community orchestra that offers two distinct concert series for its patrons. Series A is devoted entirely to the performance of a classical repertoire and...
-
Palabora Mining owns and operates a copper mine. Besides producing copper, the mine also produces magnetite, vermiculite, and titanium dioxide. To extract the ore and to separate the four minerals...
-
Zee Spin manufactures a line of golf club wedges (sand wedge, pitching wedge, lob wedge, and attack wedge) that vary with loft and club head sole design. The wedges have become very popular among...
-
The spectral density of a random signal is given by \[S(f)= \begin{cases}0.0001 \mathrm{~m}^{2} / \text { cycle } / \mathrm{s}, & 10 \mathrm{~Hz} \leq f \leq 1000 \mathrm{~Hz} \\ 0, & \text {...
-
The marginal density function of \(x\) can be determined form the bivariate density function \(p(x, y)\) as a. \(p(x)=\int_{-\infty}^{\infty} p(x, y) d y\) b. \(p(x)=\int_{-\infty}^{\infty} p(x, y) d...
-
Fill in the Blank. Univariate distributions describe the probability distributions of __________ random variables.
Study smarter with the SolutionInn App