Q.6. (a). Alternative method A and B using different tooling setups may be employed to manufacture...

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Q.6. (a). Alternative method A and B using different tooling setups may be employed to manufacture a component on a particular machine tool whose operating cost (including wages of operator) is Rs. 20 per hour. Particulars Component Cost of tooling Production rate per hour Method A 4000 pieces Rs. 320 10 pieces Method B 3000 pieces Rs. 1500 15 pieces Justify with suitable calculation which of the two methods would you choose as being more economical for regular production. Would your answer be the same if only 1000 pieces of the particular component are required ? Give appropriate calculation to justify your answer. Q.6. (a). Alternative method A and B using different tooling setups may be employed to manufacture a component on a particular machine tool whose operating cost (including wages of operator) is Rs. 20 per hour. Particulars Component Cost of tooling Production rate per hour Method A 4000 pieces Rs. 320 10 pieces Method B 3000 pieces Rs. 1500 15 pieces Justify with suitable calculation which of the two methods would you choose as being more economical for regular production. Would your answer be the same if only 1000 pieces of the particular component are required ? Give appropriate calculation to justify your answer.

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To determine which production method A or B is more economical for regular production we need to calculate the total cost of producing each component ... View the full answer