(Solved):   A high-production operation manufactures a part for the automotive industry. Starting mate ...

 

A high-production operation manufactures a part for the automotive industry. Starting material cost is R17.00, and cycle time of \( 2.20 \mathrm{~min} \). Equipment cost rate \( \mathrm{R} 300.00 / \mathrm{hr} \), and labour cost rate \( \mathrm{R} 250.00 / \mathrm{hr} \), including overhead costs in both cases. Availability of the production machine in this job is \( 97 \% \), and the scrap rate of parts produced is \( 5 \% \). Because this is a longrunning job, setup time is ignored, and there is no tooling cost to be considered. (a)Determine the production rate and finished part cost in this operation. (b)If availability could be increased to \( 100 \% \) and scrap rate could be reduced to 0 , what would be the production rate and finished part cost? [10]