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2.3. Decision on Production Cost
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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?
I think the scrapers would become a bottleneck.
Exactly! When we have only five scrapers, they control the production because they are fewer than needed. What about the pusher in this case?
The pusher would have to wait for the scrapers to finish.
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.
Does this mean we always want more scrapers?
Not always. We'll get to that! Let’s dive deeper into the numbers next.
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Now, let’s calculate production when using five scrapers. Who can remember how we estimate production?
We multiply the number of scrapers by the volume per load and divide by the cycle time.
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.
So, I guess it would be... 636.89 bank cubic meters per hour?
Spot on! And remember that job efficiency also plays a role. It's crucial we factor that in as well.
If we switched to six scrapers, would the production significantly increase?
Yes, it would, but let’s not rush ahead. Let’s see what the cost implications are for both cases.
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Alright, with our productivity established, let's look at the unit production costs associated with both configurations.
What were the costs for each scraper?
The pusher costs ₹5600 per hour and each scraper costs ₹4500 per hour. Therefore, the total cost for five scrapers would be...
It would be ₹5600 plus ₹22,500 for the scrapers?
Exactly! Now, dividing by our production rate gives us a unit cost of ₹44.12. What about for six scrapers?
I think it would be around ₹45.07!
Correct! And although six scrapers yield higher productivity, the unit cost is actually worse. How might we use that knowledge in decision-making?
It seems that choosing five scrapers is more cost-efficient!
Spot on! It's all about balancing productivity with cost. Great discussions, everyone!
Overview
Short Summary
The section discusses the implications of using different numbers of scrapers in production, particularly focusing on the effects on efficiency and production costs.
Medium Summary
This section delves into the economic analysis of utilizing different configurations of scrapers and pushers, illustrating how the number of scrapers can control production levels and impact overall costs. It presents calculations for production rates and unit costs for two scenarios: using five scrapers and six scrapers, concluding that five scrapers yield the lower production cost despite a slightly lower overall efficiency.
Detailed Summary
Decision on Production Cost
In this section, we analyze the economic implications of utilizing five and six scrapers in a production environment. By examining the relationship between the number of scrapers, their efficiency, and the associated costs, we aim to determine the optimal configuration.
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Productivity Analysis: When using five scrapers, the productivity is limited by the number of scrapers available as they are fewer than the ideal balanced number. Consequently, the scrapers dictate the production rate, resulting in a calculated production output of 636.89 bank cubic meters per hour.
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Cost Estimation: With an hourly cost of ₹5600 for pushers and ₹4500 per scraper, the unit production cost for this configuration is calculated as ₹44.12 per bank cubic meter. Conversely, when six scrapers are deployed, the production rate increases to 723.36 bank cubic meters per hour, but the unit cost rises to ₹45.07.
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Decision-Making: While a higher number of scrapers increases productivity, the cost analysis reveals that using five scrapers is more cost-effective. This contradiction highlights the importance of balancing productivity and cost in operational decision-making.
Through these calculations, we establish the need for a nuanced approach to optimizing scraper and pusher configurations, designed to meet both production deadlines and budget constraints.
Audio Book
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Create a free accountNow let us consider the economics of going for 5 scrapers. So, 5 in the sense you are going to use lesser than what is needed, you are assuming 5 that means you are going to use the number of scrapers lesser than what is needed. So, when the number of scrapers are lesser than the balanced number so obviously scrapers are more critical, but a pusher will have the ideal time. Your pusher will wait for the scraper.
Detailed Explanation
In this scenario, the focus is on using 5 scrapers. This number is below the ideal requirement. When you have fewer scrapers than necessary, they become more critical to production since they control the workflow. The pusher, on the other hand, has an easier job as it waits for the scrapers. If scrapers are not available, the pusher cannot operate effectively as it relies on them to do its job. This situation creates a bottleneck where the scrapers dictate the pace of production.
Examples & Analogies
Think of a restaurant with limited cooks (scrapers) and waiters (pushers). If there are too few cooks, they can't prepare meals fast enough, causing wait times for diners. Meanwhile, the waiters are just standing by, unable to take new orders until meals are ready. Hence, the cook's number is critical for efficient service.
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Create a free accountSo, now, let us see the productivity this case of n equal to 5 scrapers. How to estimate the production of this scraper? The volume of your bowl volume per load, you know the value of 19.82 bank cubic meter. Production (Scraper controlling) min Efficiency, hr = ×no. of scrapers ×vol. per load Cycle time of scraper, min 50 min/hr = ×5 ×19.82 bcm = 636.89 bcm/hr 7.78 min
Detailed Explanation
To determine the actual productivity of the scrapers, we use the volume each scraper can handle. Here, each scraper can manage 19.82 bank cubic meters. We then multiply this by the number of scrapers (5) and adjust for the time taken to complete a cycle. The cycle time of each scraper is 7.78 minutes, so we calculate how many of these cycles fit in an hour (working at 50 minutes an hour against total time). The result gives us a production rate of 636.89 bank cubic meters per hour.
Examples & Analogies
Imagine a bus carrying students. Each bus can hold 20 students (equivalent to volume per load). If you have 5 buses, you can transport a total of 100 students per trip. However, if each trip takes 30 minutes and the buses can only operate for 50 minutes in an hour, you need to calculate how many trips can be completed within that timeframe to understand your 'student transport capacity'.
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Create a free accountIf n is greater than the balance number that means you are going to use more number of scrapers, then what is indicated by the balance number. In this case, scrapers will have the ideal time. Scrapers are not critical. So, the scraper will be waiting for the pusher.
Detailed Explanation
When the number of scrapers exceeds the ideal balance, the situation changes significantly. In this case, scrapers are not the limiting factor; instead, they end up waiting for the pusher to be ready. This means that the pusher’s cycle time now becomes the crucial aspect of production flow. If the pusher is not available, the entire operation can stall since the scrapers can work faster than they are being utilized.
Examples & Analogies
Consider a library where you have too many librarians (scrapers) but not enough library clerks to check in books (pushers). The librarians can organize many more books than can be processed, leading to a backlog where librarians are idle while waiting for clerks to be available to take the books off their hands.
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Create a free accountWe need the unit production cost in terms of the cost per bank meter cube. That is why we have to estimate the production also in the bank cubic meter. So, it is already estimated earlier the volume per load that is a volume of the bowl is 19.82 bank cubic meter.
Detailed Explanation
To assess which configuration of scrapers and pushers offers the best financial outcome, we need to calculate the unit cost of production. This involves determining how much it costs to produce one bank cubic meter of material. We previously figured that our scrapers can handle 19.82 bank cubic meters per load, and we will consider how many loads are produced to derive a cost per cubic meter produced, which allows for comparison between different operational setups.
Examples & Analogies
It’s like running a bakery. If a batch of cookies costs 0.25. If you can find ways to reduce that cost, such as buying ingredients in bulk or streamlining your baking process, that affects how profitable each cookie can be when sold.
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Create a free accountNow let us estimate the cost. How to calculate the unit production cost? Total unit cost of production for combination Cost of Push tractor with operator Cost of scraper with operator + ×number of scrapers)
Detailed Explanation
To calculate the total unit production cost, we consider the costs associated with both the pusher and scrapers, including their operational costs. We factor in the quantity of scrapers used in combination with a single pusher. This computation helps identify which option results in lower production costs per bank cubic meter, which is essential for businesses looking to minimize expenses while maximizing productivity.
Examples & Analogies
Think of running a delivery service. You need to account for the costs of your delivery vehicles and drivers (pushers) as well as what it costs to maintain your product delivery (scrapers). If one delivery method costs more than another for the same distance, you’d choose the lower-cost option to maximize your profitability.
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Create a free accountSo, we have come to the end of this lecture. The solution is we are going for 5 scrapers and 1 pusher. The associated production value is 636.89 bank cubic meter per hour and the unit production cost associated is rupees 44.12 per bank cubic meter.
Detailed Explanation
We conclude that using 5 scrapers with 1 pusher optimally balances productivity and cost. The production rate achieved is 636.89 bank cubic meters per hour, with a unit production cost of ₹44.12 per bank cubic meter. This method not only enhances efficiency but also keeps costs managed, which is crucial for project budgeting and planning.
Examples & Analogies
It’s similar to figuring out how many workers are needed in a factory. If 5 workers can produce 100 widgets per hour at a 2.50 cost per widget, it illustrates clearly when it makes more sense to operate with fewer but more efficient workers.
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Key concepts
Core takeaways and short definitions to help you quickly recall the key ideas from this section.
- Production Control:
The number of scrapers influences the rate of production, with fewer scrapers generally leading to slower rates.
- Unit Production Cost:
Calculating the cost per unit is essential for decision-making on the configuration of equipment.
- Balancing Efficiency and Cost:
An analysis must be made to balance between productivity and costs in production setups.
Examples
Memory aids
Imagine a crew deciding between five busy scrapers halting work on a job versus six waiting around; the choice affects the total time and cost!
Cost analysis made of Scraper and Pusher: C—Control of numbers; A—Analyze costs; R—Results in efficiency.