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Given data

Total Production per Day = 400 Parts

Shift Hours = 8 Hrs

Product Weight =30 lb

Product Dimensions = 48” ×60”× 5”

01. Cycle Time

Cycle time =Time

No of Parts

=8×60400

Cycle time = 1.2 Mints/Part

02. Equipment Used In the Facility

A. Pick and Place Robot: Two robots are used in the facility. One of them takes the semi

finished product from the warehouse and places on the conveyor belt. Another one picks

the finished product at the end of conveyer belt places on the industrial truck.

The Motoman CR45 is the first robot on the market to combine environmentally clean

functions with a 45lb handling capability

Brand: Motoman

Model: CR45

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B. Conveyers

Rolls: This are used in between the conveyor belts to transfer product from one

conveyor to another conveyor and it works on the principle of gravity

Belt: A belt conveyor is a system of pulleys with a long loop of fabric or other

material stretched between them. Usually at least one of the pulleys is motorized to

pull the belt along with it. The product flows on the belt in entire facility from initial

part to final product.

Model: TL Heavy duty Horizontal Belt with 52’ width × 120’ length

Brand: Gilmore Kramer

C. Cranes: overhead bridge cranes with 2 ton capacity and 60 ft of span are used to load the

products to the truck at second tier supplier and unload from the truck at first tier

supplier.

Brand: Engineered material handling

Model: ELV 2

D. Industrial Truck: Industrial trucks are used to move materials over variable paths

towards the loading and unloading point.

Brand: Vestil

Model: Electric Power Pallet Truck Ept-2796-45 27x96 Forks

E. Truck: The function of the truck is to transport the product from supplier tier two to

supplier tier one

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Brand: FORD

Model: F350

03. Cost of the Equipment

Equipment Quantity Actual Cost Total Cost

Rolls 1 $3205 $3205

Belts 3 $3623.07 $10869.21

Pick and Place Robot 2 $3,499.95 $6999.9

Cranes 2 $6000 $12000

Industrial Truck 3 $8,569.00 $25707

Truck 2 $23,995 $47990

04. Employees in the Facility

Position No of Required

Employees

Annual Average

Salary

Total Salary

President 1 $1,98,482 $1,98,482

Vice president HR 1 $1,76,152 $1,76,152

Total Cost of Equipment = $1, 06,771.1

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Vice president

Manufacturing

1 $1,29,195 $1,29,195

Vice president

Engineering

1 $1,58,818 $1,58,818

Vice President

Marketing

1 $1,38,889 $1,38,889

Production Manager 1 $89,190 $89,190

Assembly Manager 1 $82,260 $82,260

Testing Manager 1 $72,964 $72,964

Project Manager 1 $1,13,963 $1,13,963

Assembly Engineer 4 $68,025 $2,72,100

Mechanical Engineer 4 $80,580 $3,22,320

Electronics Engineer 4 $88,661 $3,54,644

Software Engineer 4 $93,350 $3,73,400

Senior Engineers 4 $1,07,099 $4,28,396

Assistant Engineers 4 $64,008 $2,56,032

Supervisors 8 $52000 $4,16,000

Technicians 15 $54,759 $8,21,385

Workers 25 $43,409 $10,85,225

Total 81 $54, 89,415

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05. Facility Layout

Fig_01. Layout of the Facility With 10% of Office Area

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06. Rental Price for the Facility

Location: Denver, Colorado

Average Rate per Sq ft = $9.00

The Facility Area = 75000 Sq Ft

Total Rental Cost Per Year =75000×9

Total Rental Cost of the Facility Per Year = $6, 75,000

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07. Total Annual Expenses

Total Cost of Equipment = $1, 06,771.1

Interest Rate of Bank loan on Equipment = 6%

Yearly expenses to pay for the bank (including Interest), a = 1,06,771.1

20 +0.06(1, 06,771.1)

(a)= $11,744.82/ year

Utility expenses / Month =$10,000

Utility expenses / Year (b) = $1, 20,000

Annual Employees salaries (c) = $54, 89,415

Annual Rent of the facility (d) =$6, 75,000

Total Annual Expenses = a+b+c+d

=11, 744.82+1, 20,000+54, 89,415+6, 75,000

Total Annual Expenses =$62,96,159.82Total Expenses for 20 Years = $7, 55, 53, 917.84

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Fig_02. Cash Flow diagram for 20 Years