Evaluating Drill Production Alternatives
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ScribdTranslationsEvaluating Drill Production Alternatives
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During his first month as an employee at Greenfield Industries (a major factory
(drills), he was asked to evaluate alternatives to produce a newly designed drill for
a rotary machine. The memo from your boss has practically no information.
about what the alternatives are or the criteria to use. A former employee was
I had entrusted the same task to someone who was unable to complete the analysis, but who gave it to
You have the following information: there is an old rotary machine (in the warehouse).
valued at $350,000, which can be modified to accept the new drill. The technicians from
the company estimates $40,000 as the amount required to modify that machine,
and they assure that they would have it ready before the projected date to start (although never
they have made modifications of that kind). It is expected that the old rotary machine will be
full capacity can meet production requirements. A company
external, McDonald Inc., built the machine seven years ago and could easily perform
the same modifications for $60,000. The cooling system of this machine does not
provides environmental security and would require some costs for its adaptation. McDonald, Inc.
has offered to build a new rotary machine with more environmental safeguards and
greater capacity for a price of $450,000. McDonald, Inc. promises to have the machine ready
before the start date and is willing to cover any costs for delays. The
your company has allocated $100,000 for the launch of the new line of
production of drills. For the described situation:
a) Define the problem.
b) Mention the key assumptions.
c) Indicate the alternatives of Greenfield Industries.
d) Choose a criterion to evaluate the alternatives.
e) Introduce the risk in this situation
f) Analyze how non-monetary considerations would influence the selection.
g) Describe how a post-audit could be carried out
2. The problem of the almost graduated student. Consider the following situation that they face
many advanced civil engineering students, exhausted from too many interviews of
work and without a cent due to the countless parties. Mary's first impulse is
immediately accept a very attractive job offer at the manufacturing company
successful of her brother. Then she could leave her studies for one or two years, save up
some money, and then go back to school to finish her last year and graduate. Mary is
cautious regarding this impulsive desire, because it could very well end in not obtaining
no professional title.
a) Desarrolle al menos dos formulaciones para el problema de Mary.
b) Identify feasible solutions for each formulation of the problem in section a).
creative!
3. Explain why the subject of economic engineering is important for professional life.
of the engineer.
4. Will the increasing use of automation enhance the importance of studies?
economic engineering? Why?
5. Mention 10 common situations in the operation of an organization where an analysis
economic engineering will significantly assist in decision-making. It should
suppose a specific type of organization (for example, a manufacturing company, a
medical center, a transportation company, a government agency, etc.
that helps in the development of your response (state the assumptions).
6. Suppose you work for a manufacturing company that produces several
consumer electronics. What are five non-monetary factors (attributes)
that become important when considering a significant change in the design of
best-selling product?
7. Explain the relationship between economic engineering analysis and engineering design.
How does economic analysis help decision-making in the design process?