Question
Column 3: Wood Furniture, Inc. works one 8-hour shift per day, five days per week, 48 weeks/year. Based on this information determine the total number of working hours per year.
Convert your team's annual production requirements to a per hour production requirement. In other words, divide the number of footstools per year by the number of working hours per year. Round the answer to one decimal place. Enter that figure at the bottom of column 3 on Exhibit 2 as the Required Output Per Hour at 100% Productivity for the very last operation (Packing).
Work from the bottom of column 3 up the form. To compute the value for each previous operation, divide the quantity for the current operation by (1 - scrap ratio). For example if the new operation has 3% scrap, then divide by 0.97 (1 - .03).
The sand edges operations for the component parts will come from the Assembly operation where the part is first introduced.
On Exhibit 2B for the Deluxe Footstool:
The Top is first used at Assembly operation 415.
Therefore, column 3 for sand edges, operation 165, will be the operation 415 value in column 3 divided by (1 - X), where "X" is the scrap rate for operation 165.
Sand edges, operation 265, will be derived from the 435 operation.
Sand edges, operation 365, will be derived from the 425 operation.
Once you have the correct value for sand edges for each component part, work up through the operations for that component part.
[Machine Requirements Calculations for Deluxe Footstools Production Data: Deluxe Footstools Per Year = 215,000 Productivity Percent = 104% 1920
Explanation / Answer
so i will start from the bottom
as given in the question we must divide the value by (1-scrap percent ) to get the new value
475) 111.9
465) 111.9/(1-0.02) = 114.18
455) 114.18/(1-0.01) = 115.34
445) 115.34/(1-0.01) = 116.5
435) 116.5 /(1-0.03) = 120.11.
425) 120.11/(1-0.02) = 122.56
415) 122.56/(1-0.01)= 123.79
365) 123.79/(1-0.01)=125.05
355) 125.05/(1-0.02) =127.60
345) 127.6/(1-0.01) = 128.89
335) 128.89/(1-0.03) = 132.87
325) 132.87/(1-0.05) =139.87
265) 139.87/(1-0.01) =141.28
255) 141.28/(1-0.02) =144.16
225) 144.16 /(1-0.03) =148.62
215) 148.62/(1-0.05) = 156.44
165) 156.44/(1-0.01) =158.02
155) 158.02/(1-0.02) = 161.25
135) 161.25/(1-0.04)=167.97
125) 167.97/(1-0.03) =173.16
115) 173.16/(1-0.05)= 182.27