Cases in Operation Management
The “Quality Auto Works” is a manufacturer of auto parts. All the auto parts being
manufactured in the industry are required to be phosphated for surface protection.
Presently other small units are done this phosphated work.
Quality Auto Work is now thinking of installing its own phosphating plant and is
interested about knowing about following.
(A) Should the install new plant or continue the present practice of subcontracting?
Benefit to labor
: 8000x12 =
: 96000x40/100 =
: 30,000x0.23x12 =
: 30,000x0.45x12 =
Total cost of installing
According to above calculation the firm should install its own phosphating plant; it
will be beneficiary for it.
Nitneel Industries P Ltd is a firm dealing in different types of operations the firm in
interested in knowing about the following.
A) Estimate the requirement of power hacksaw sand manpower for the above
mentioned production target. If presently company has four power hacksaws,
establish additional requirement.
For finding out the requirement of power hacksaws and manpower according to
mentioned production target we have to make some calculation, which is based on the
a) The labor efficiency against output standards is @80%.
b) The plant utilization against output standard is @75%
c) Hour available per month is 200 hrs(25x8hrs)
Part Name/Part No Std Avg. Usage Runnin Capacit No of
1 Agro Control Shaft
2 Serration Shaft
3 Oil Pump Gear
4 Helical Oil Pump
7 Hex nuts(50.52