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d. In coating and sharpening, the operator begins...




d. In coating and sharpening, the operator begins by inspecting items that have arrived from the chemical bath. If rough edges or blemishes are detected, the operator smooth?s and/or buffs the items before actual coating or sharpening takes place. (Note that this process is in addition to the inspection that takes place at a separate inspection station following coating and sharpening.) In order to save valuable time in coating and sharpening, management is considering forming a separate inspection station before the coating and sharpening process. The inspection station can utilize existing smoothing and buffing equipment, and it can be staffed on an as needed basis by an employee who normally works in the chemical bath area, which has excess capacity (so the employee will not be missed for brief periods). Management estimates that this action will free up 240 hours in coating and sharpening (an average of 5 minutes per hour x 8 hours per day x 360 operating days per year). Management has calculated that the average contribution margin per unit for its products is $300.The average contribution margin per hour spent in coating and sharpening is $850.,there is no .doc or xls attached


Paper#6496 | Written in 18-Jul-2015

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