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2.3. Decision on Production Cost

Interactive Audio Lesson

Session 1: Understanding Scraper Production Control

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Sarah
SarahInstructor

Today, we will discuss how the number of scrapers influences production control. Can someone explain what happens when we use fewer scrapers than the balanced number?

Noah
Noah

I think the scrapers would become a bottleneck.

Sarah
SarahInstructor

Exactly! When we have only five scrapers, they control the production because they are fewer than needed. What about the pusher in this case?

Isabella
Isabella

The pusher would have to wait for the scrapers to finish.

Sarah
SarahInstructor

Correct! This leads to a drop in efficiency since the pusher doesn’t have anything to push when the scrapers are busy. Remember that scrapers control production in this scenario.

Akash
Akash

Does this mean we always want more scrapers?

Sarah
SarahInstructor

Not always. We'll get to that! Let’s dive deeper into the numbers next.

Session 2: Calculating Productivity

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Robert
RobertInstructor

Now, let’s calculate production when using five scrapers. Who can remember how we estimate production?

Ananya
Ananya

We multiply the number of scrapers by the volume per load and divide by the cycle time.

Robert
RobertInstructor

Exactly! With five scrapers and a volume per load of 19.82 bank cubic meters and a cycle time of 7.78 minutes, you can estimate the production.

Noah
Noah

So, I guess it would be... 636.89 bank cubic meters per hour?

Robert
RobertInstructor

Spot on! And remember that job efficiency also plays a role. It's crucial we factor that in as well.

Isabella
Isabella

If we switched to six scrapers, would the production significantly increase?

Robert
RobertInstructor

Yes, it would, but let’s not rush ahead. Let’s see what the cost implications are for both cases.

Session 3: Unit Production Cost Estimation

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Sarah
SarahInstructor

Alright, with our productivity established, let's look at the unit production costs associated with both configurations.

Akash
Akash

What were the costs for each scraper?

Sarah
SarahInstructor

The pusher costs ₹5600 per hour and each scraper costs ₹4500 per hour. Therefore, the total cost for five scrapers would be...

Ananya
Ananya

It would be ₹5600 plus ₹22,500 for the scrapers?

Sarah
SarahInstructor

Exactly! Now, dividing by our production rate gives us a unit cost of ₹44.12. What about for six scrapers?

Noah
Noah

I think it would be around ₹45.07!

Sarah
SarahInstructor

Correct! And although six scrapers yield higher productivity, the unit cost is actually worse. How might we use that knowledge in decision-making?

Isabella
Isabella

It seems that choosing five scrapers is more cost-efficient!

Sarah
SarahInstructor

Spot on! It's all about balancing productivity with cost. Great discussions, everyone!