BU111 Lecture Notes - Lecture 6: Batch Production, Eugenius Warming
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6-30 as shown below, benefits from the switch to jit operations are estimated to be ,600: Net benefit (loss) from a change in plant layout in year 1 (,000) The proposed change in plant layout should not be implemented because its costs are greater than its benefits, if only one year"s benefits are considered. Net present value analysis, which is covered in other courses, should be used to evaluate the benefits over the entire useful life of the machine. 6-37 before the rearrangement, pce in minutes for whisper voice systems equals [70/(70 + 45 + 55 + 30)] = 70/200 = 0. 35. Pce in minutes equals [30/(30 + 10 + 20 + 15)] = 30/75 = 0. 40. The percentage improvement in pce after the rearrangement is [(0. 4 . Thus, the change exceeds ray brown"s requirement of a 12% improvement in pce.
