Maximizing Return on Investment in Plant and Machinery
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Questions and Answers

What does N stand for in the given content?

  • Net profit in production
  • Nominal value for machine capacity
  • Negative influence on production capacity
  • Number of machines required in production (correct)

    • Which factor does NOT influence the process and equipment selection?

  • Availability of skilled labor (correct)
  • Functional versatility
  • Minimum set-up time
  • Durability and dependability

    • What strategy involves producing at a constant rate and using inventory to absorb demand fluctuations?

  • Chase demand
  • Peak demand
  • Level production (correct)
  • Proactive demand management

    • In Capacity Planning, what is the purpose of establishing a company-wide game plan for allocating resources?

    <p>To allocate resources effectively to meet demand</p> Signup and view all the answers

    What is the hiring cost per worker mentioned in the text?

    <p>$100 per worker</p> Signup and view all the answers

    Which strategy involves maintaining resources for high-demand levels?

    <p>Peak demand</p> Signup and view all the answers

    What does CAPP stand for in the context provided?

    <p>Computer Aided Process Planning</p> Signup and view all the answers

    Which quantitative technique is NOT mentioned for Aggregate Production Planning (APP) in the text?

    <p>Simulation Analysis</p> Signup and view all the answers

    What is the purpose of the Mixed Strategy in production planning?

    <p>To combine level production and chase demand strategies</p> Signup and view all the answers

    What is the cost calculation formula for Level Production Strategy mentioned in the text?

    <p>Production cost + Inventory cost</p> Signup and view all the answers

    What is the primary reason for economies of scale?

    <p>Spreading fixed costs over multiple units</p> Signup and view all the answers

    When does the cost per unit of output rise as volume increases?

    <p>When diseconomies of scale take effect</p> Signup and view all the answers

    At what point do diseconomies of scale start to take effect in the given example?

    <p>At a 400-unit plant</p> Signup and view all the answers

    What is the result of producing more products and gaining experience in the best production methods?

    <p>Reduced costs per unit</p> Signup and view all the answers

    What is the Best Operating Level?

    <p>The output that results in the lowest average unit cost</p> Signup and view all the answers

    What is one of the ways to maximize the return on investment (ROI) for plant and machinery?

    <p>Making optimum investment in plant and machinery</p> Signup and view all the answers

    What formula is used to calculate the number of machines required for a specific job?

    <p>N = (Standard time for job) X (Machine production capacity %) / (Machine capacity X Machine utilization %)</p> Signup and view all the answers

    What is the standard time for a job on the milling machine, according to the given details?

    <p>6 minutes</p> Signup and view all the answers

    How many jobs are to be produced, based on the given details?

    <p>70,000</p> Signup and view all the answers

    What is the machine capacity, according to the given details?

    <p>2000 hours/month</p> Signup and view all the answers

    What is the machine utilization rate, based on the given details?

    <p>90%</p> Signup and view all the answers

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