Question

A plastic molding machine produces a product whose annual demand is in the millions.

Answer 1

Answer:

a. 78.4 pieces/hr

b. $0.1806/min

c. $1.34/piece

Explanation:

(a) With a cycle time Tc = 45 sec = 0.75 min.

Production rate, Rp = 60/0.75 = 80 pieces/hr.

Let us factor in the 98% proportion uptime, so Production rate, Rp = 0.98*(80) = 78.4 pieces/hr

Quantity of product annualy = 6000 *(78.4) = 470,400 pieces/yr

(b) Equipment cost rate, Ceq = 500,000(1.30)/(60 x 10 x 6000) = $0.1806/min.

(c) Cost per piece of mould, Ct = 100,000/1,000,000 = $0.10/piece

Cost rate of labour ,CL = 18.00(0.20) = $3.60/hr = $0.06/min

Conclusively, cost per piece, Cpc = 1.20(0.88) + (0.06 + 0.1806)(0.75) + 0.10 = $1.34/piece