A part is processed through six operations in a batch produc

A part is processed through six operations in a batch production plant. Cost of the starting material for each unit is $5.85. Batch quantity = 40 parts. The following table presents time and cost data for the six operations: T_su = setup time, T_h = part handling time, T_a = operation processing time, T_t = tool handling time where applicable, T_np = non-operation time, = operating cost of the work centre, and C_t = tool costs where applicable. Determine the total production cost for this part. A spreadsheet calculator is recommended for this problem. If a spreadsheet is used, show the calculation step by step, DO NOT just give a final answer (number).

Solution

Operation Tsu(hr) T h(min/pc) To(min/pc) Tt(min/pc) T no(hr) Co ($/hr) Ct ($/pc) 1 2.5 0.25 1.25 0 10 33 0 2 1.3 0.25 2.5 0.25 10 65.5 0.25 3 4.1 0.3 1.75 0 10 48.5 0 4 1.7 0.25 0.75 0.1 10 72 0.15 5 2 0.15 1.75 0 10 25.5 0 6 0.8 0.35 1 0.15 10 30 0.2 No of pieces N 40 Material cost Cr ($) 5.85 First we will find out each operation cost C ($) Total time in each operation                       T= Tsu+T h*N*(1/60)+To*N*(1/60)+Tt*N*(1/60)+Tno general equation of operation cost                       C= Co*T +Ct*N First operation Total Time T1 (hr) 13.5 First operation Total cost C1 ($) 445.5 Second operation Total Time T2 (hr) 13.3 Second operation Total cost C2 ($) 881.15 Third operation Total Time T3 (hr) 15.46667 Third operation Total cost C3 ($) 750.1333 Fourth operation Total Time T4 (hr) 12.43333 Fourth operation Total cost C4 ($) 901.2 Fifth operation Total Time T5 (hr) 13.26667 Fifth operation Total cost C5 ($) 338.3 Sixth operation Total Time T6 (hr) 11.8 Sixth operation Total cost C6 ($) 362 Total Cost Cost   ($) = Cr*N+C1+C2+C3+C4+C5+C6 Cost ($) 3912.283