Quiz 4

Prodman

Name___________________________________- Date______________________

1. Patricia Zuniga, a doll maker from Bulacan, Bulacan is interested in mass marketing and
production of a ceramic doll of her own design called Trudis Liit. The initial investment required
for plant and equipment is estimated at PhP1,000,000. Labor and material costs are
approximately$400 per doll. If the dolls can be sold at $2,000 each, what volume of demand is
necessary for the Trudis Liit dolls to breakeven?
breakeven?

2. Although it will fulfill a lifelong dream, Patricia is not confident that demand for her doll will
exceed the breakeven point computed in No. 1. If she chooses a less appealing site and does
more of the work by hand, her initial investment cost can be reduced to PhP200,000 but her
unit cost will rise to PhP 600 per Doll.
a. What is the breakeven point for this new process?
b. Compare the two processes. For what volume of demand should Patricia choose this
process?
3. Given the following load summary chart, design a 3 X2 chart that minimizes non-adjacent
loads.

From/to A B C D E
A 50 25
B 20 100
C 30 10 75
D 40
E 60

4. The assembly line whose activities are shown in the following table has an 8 minute cycle
time. Draw the precedence graph and find the minimum possible number of workstations. Then
arrange the work activities into workstations so as to balance the line. What is the efficiency of
your line balance?
TASK PERFORMANCE TIME (MINS) PRECEDENCE
A 5 -
B 3 A
C 4 B
D 3 B
E 6 C
F 1 C
G 4 D,E,F
H 2 G