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horsena [70]
3 years ago
8

Positively Rivet Inc. is a small machine shop that produces sheet metal products. It had one line dedicated to the manufacture o

f light-duty vent hood shells, but because of strong demand it recently added a second line. The new line makes use of higher-capacity automated equipment but consists of the same basic four processes as the old line. In addition, the new line makes use of one machine per workstation, while the old line has parallel machines at the workstations. The processes, along with their machine rates, number of machines per station, and average times for a lone job to go through a station (not including queue time), are provided below. Over the past 3 months, the old line has averaged 350 parts per day, where one day consists of one 8-hour shift, and has had an average WIP level of 400 parts. The new line has averaged 680 parts per eight-hour day with an average WIP level of 350 parts. Management has been dissatisfied with the performance of the old line because it is achieving lower throughput with higher WIP than the new line, Your job is to evaluate these two lines to the extent possible with the data provided and identify potentially attractive improvement paths for each line by addressing the following questions:
Compute rb, To, and Wo for both lines. Which line has larger critical WIP? Explain why.
Compute the best case and worst case performance benchmarks for the old and the new line.
Compare the performance of both lines to their corresponding practical worst case. What can you conclude about the relative performance of the two lines compared to their underlying capabilities? Is management correct in criticizing the old line for inefficiency?
If you were the manager in charge of these lines, what option would you consider first to improve the throughput of the old line? Of the new line?
Old Line
Process Rate per Machine (parts/hr) Number of Machines per station Time (minutes)
Punching 15 4 4.0
Braking 12 4 5.0
Assembly 20 2 3.0
Finishing 50 1 1.2
New Line
Process Rate per Machine (parts/hr) Number of Machines per station Time (minutes)
Punching 120 1 0.50
Braking 120 1 0.50
Assembly 125 1 0.48
Finishing 125 1 0.48
Business
1 answer:
Montano1993 [528]3 years ago
6 0

Answer:

Don't ask so many questions at the same time ok

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Explanation:

3 0
3 years ago
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If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we
Ket [755]

Answer: competition would force producers to pass the lower production costs on to consumers in the long run

Explanation:

Occupational safety law deals with the health and safety of workers at their workplace and safety for activities outside of work. It is the function of employers to take care of their employees safety.

In a case whereby the occupational safety laws are changed so that the firms will no longer take expensive steps in order to meet regulatory requirements, there would be more competition which would lead to reduction on prices as a result of lower production cost which would be eventually passed from the producers to the consumers in the long run.

4 0
3 years ago
Summit Builders has a market​ debt-equity ratio of 0.65 and a corporate tax rate of 40 %​, and it pays 7 % interest on its debt.
avanturin [10]

Answer:

1.103%

Explanation:

Data provided in the question:

Market​ debt-equity ratio = 0.65

Corporate tax rate = 40%

Interest on paid its debt = 7%

Now,

Debt ÷ Equity = 0.65

or

Debt = 0.65 × Equity

Weight of Debt = Debt ÷ (Debt + Equity)

or

= ( 0.65 × Equity ) ÷ ( 0.65 × Equity + Equity )

= 0.65 ÷ 1.65

= 0.3939

also,

Tax shield = Corporate tax rate × Interest paid on its debt

= 0.40 × 0.07

= 0.028

= 2.8%

Therefore,

The interest tax shield from its debt lowers​ Summit's WACC by

= Weight of Debt  × Tax shield

= 0.3939 × 2.8%

= 1.103%

8 0
3 years ago
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Vlad1618 [11]

Answer:

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4 0
3 years ago
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What happened to assets, earnings, dividends, and cash flows during the financial year? The Provincial and Teritorial Securities
Alchen [17]

Answer:

1.

Is required by the Provincial and Territorial Securities Commissions and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans - ANNUAL STATEMENT

The annual statement is a very important document that shows a company's financial results in a period as well as the future outlook and plans of the company according to management.

Details changes in the capital received from investors in exchange for shares (paid-in capital), donated capital, and retained earnings - STATEMENT OF CHANGES IN EQUITY.

The Statement of changes in equity shows the changes in capital from investors as well as donated capital and retained earnings.

Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows - STATEMENT OF CASHFLOWS

A very important statement, the Statement of cashflows shows the actual amount a company has by deducting its cash outflows from inflows.

Gives information about earnings before interest, taxes, depreciation, and amortization. - INCOME STATEMENT

The Income statement is used to calculate the income for the company in a particular period. It includes expenses such as taxes, interest, depreciation and amortizaton.

Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time. BALANCE SHEET.

The Balance sheet is used to show the assets, liabilities and equity of a company in a given period.

2.

Does the firm generate enough internal funds to support anticipated investment or does additional outside capital need to be raised? - STATEMENT OF CASHFLOWS

As the Statement of Cash Flows shows the actual amount of money available, it would be the best to use to see if the company is generating enough internal funds.

Can the firm meet all its short-term obligations using its current assets? - BALANCE SHEET

The Balance sheet contains information on the firm's current assets as well as its current liabilities and so would be the best statement to use.

7 0
3 years ago
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