The available number of working hours is given as 560. Since the given data pertains to working hours, it is assumed that this takes care of all breaks and interruptions to work, such as lunch and refreshment breaks.
2. The set up time for the production of the parts is…
3. The utilization of the workcentres is assumed to be 100%. This assumption ignores any machine downtime for various reasons such as breakdown, power failure, lack of materials or labour, and planned maintenance. (Vorne industries, 2008) However, the actual number of machines planned for procurement is higher than the calculated number by a substantial amount in the case of each type of workcentre. This has occurred partly due to rounding off of fractional requirements. Where the rounding off involved marginal increases, as in the case of Workcentres A and C, the rounding off has been carried over to the next higher figure. Because of this, there is enough in-built cushion in the calculated figure to take care of lower utilization.
4. Interference or waiting times have been assumed to be zero. Interference and waiting times can arise because of unbalanced line in which some of the machines have less capacity than others causing a pile up at these centres. Waiting times can also occur when disparate products are being scheduled one at a time, and the schedules fail to take care of piling of jobs at the same time at a workcentre, causing some of the parts/products to wait. In the present case, there is a continuous production of five different products with the same processing times. Although this could lead to scheduling problems because of changeover from one product to another, in this particular case, it is unlikely to happen because all products take the same time to process. Moreover, there is sufficient cushion available in the capacities due to rounding off, to take care of any waiting time.
The financial viability of the new plant is to be checked using the IRR method. The Operations Director (OD) has set a criterion for selection of projects based on the IRR of the project. According to this criterion, projects having an IRR of more than 30% are to be ...
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Financial Appraisal Name Professor’s Name Institution Date Financial Appraisal A financial appraisal is a term commonly used in finance and accounting and as such, it refers to a method of a financial decision mostly applied in such economic aspects as policies, projects or programs.
Categorizing Assets and Liabilities 8 b. Asset Valuation 9 c. Balance Sheet and Net Worth 10 D) Appendices a. Appendix 1-A: Farm Inventory Illustration 12 b. Appendix 1-B: Balance Sheet 13 Farm Visit: Data Collection Techniques and Sources Farm Resource Assessment provides information on the performance of the farm not only to the farmers but also governmental and non-governmental organizations.
he important functions executed in an organisation that formulates and implements policies regarding recruitment and functioning of the employees ensuring that appropriate talents are selected for the job assigned (Clark & Colling, 2003). In the modern day perspective, there are various tools utilised for the execution of the prime functions of HRM.
Another measure of performance is the ability of the human resources to undertake their roles and responsibilities, according to their respective job descriptions and the goals or standards to achieve. Marquis and Huston (2011) explain that a highly critical management function of controlling is performance management.
The annual reports of three companies Johnson Matthey plc, Smith and Nephew plc and Smiths Group plc are judged according to the criteria. The Award is given to Johnson Matthey plc since the annual report of the Company fulfils the maximum criterias.
One of the main purposes of annual reports is to provide information that is useful to their users (Day, 1986).
In other words, the system of capital budgeting is employed to evaluate expenditure decisions which involve current outlays but are likely to produce benefits over a period of time longer than one year.
The higher the NPV, this means that IRR is lower. Thus, we cannot choose a project with both higher NPV and IRR.
D. Payback's advantages include simplicity and straight-forwardness. However, it neglects cash flows after the payback period and time value of money.