Part 1: Lean Thinking - Although we went through the Lean concepts very quickly, you should be able figure these out without problem. Because, if it does not make sense, it is not real lean concept. a. (5%) Suppose your forging station produces products at a rate 1 unit/minute. Each piece of material costs $1, and the price of final product is $2. It costs $20/hour to run the machine (in addition to materials cost) and $30/hour to setup the machine. The machine can run 24 hours continuously, but a setup requires 6 hours. Now, a customer wants to order 180 units of a special color. What would be the estimated profit of this job (180 units) based on the information provided? (*Note: Profit = Revenue from Sales - Material Cost Setup cost Production Cost) $120 b. $60 $0 d. $60 $120 a. C. e. b. (5%) Following the previous question. If we just want to break even ($0 profit), what would be the minimum order quantity we should request? a. 150 units b. 210 units c. 270 units d. 360 units e. More than 400 units c. (5%) Now, the CEO wants to enhance product variety to serve different demands. Within a week of production (24 hours x 7 days), how many times can we changeover product types without losing the breakeven status (still just $0 profit)? a. Less than 5 times b. 8 times 16 times d. 20 times e. More than 30 times c. d. (5%) The CEO realized that 6 hours of changeover down time is not acceptable. Therefore, a "setup reduction analysis was done, and the new changeover time is 24 minutes only. If we want to maximize the product variety, how many times can we changeover product types within a week (24 hr x 7 days) without losing the breakeven status? a. Less than 10 times b. 24 times 48 times d. 96 times e. More than 120 times c