SlideShare a Scribd company logo
7.12Chapter 7 Problem 12a). Complete the spreadsheet below
by estimating the project's annual after tax cash flow.b). What
is the investment's net present value at a discount rate of 10
percent?c). What is the investment's internal rate of return?d).
How does the internal rate of return change if the discount rate
equals 20 percent?e). How does the internal rate of return
change if the growth rate in EBIT is 8 percent instead of 3
percent?Facts and AssumptionsEquipment initial cost $$
350,000Depreciable life yrs.7Expected life yrs.10Salvage value
$$0Straight line depreciationEBIT in year 128,000Tax
rate38%Growth rate in EBIT3%Discount
rate10%Year012345678910Initial cost350,000Annual
depreciation50,00050,00050,00050,00050,00050,00050,000EBI
T28,00028,84029,70530,59631,51432,46033,43334,43635,4703
6,534Net present value @ 10%Internal rate of return
7.13Chapter 7 Problem 13In many financial transactions,
interest is computed and charged more than once a year.
Interest on corporate bonds, for example, is usually payable
every six months. Consider a loan transaction in which interest
is charged at the rate of 1 percent per month. Sometimes such a
transaction is described as having an interest rate of 12 percent
per annum. More precisely, this rate should be described as a
nominal 12 percent per annum coumpounded monthly.Clearly, it
is desirable to recognize the difference between 1 percent per
month compounded monthly and 12 percent per annum
compounded annually. If $1,000 is borrowed with interest at 1
percent per month compounded monthly, the amount due in one
year is:F = $1,000(1.01)12 = $1,000(1.1268) = $1,126.80 This
compares to F = $1,000(1+.12) =$1,120.00 for annual
compounding.Hence, the monthly compounding has the same
effect on the year-end amount due as the charging of a rate of
12.68 percent compounded annually. 12.68 percent is referred
to as the effective interest rate. To generalize, if interest is
compounded m times a year at an interest rate of r/m per
compounding period. Then,The nominal interest rate per
annum, or the APR = m(r/m) = r.The effective interest rate per
annum,or the EAR = (1+r/m)m - 1.Consider a $100,000, 30
year, fixed-rate, 9 percent, home mortgage requiring monthly
payments.a. The monthly interest rate on the mortgage is 9%/12
months = .75%. What is the APR on the mortgage?b. What is
the EAR on the mortgage?c. The borrower's payment book will
look something like the following. Complete the entries for the
first 6 months.Outstanding Balance Beginning of MonthMonthly
paymentInterest duePrincipal paymentOutstanding Balance End
of MonthDate01-31$100,00002-2803-3104-3005-3106-30d.
After paying on this mortgage for 15 years, what will be the
remaining principal outstanding? e. Suppose after 15 years the
borrower has the opportunity to refinance the remaining
principal on the mortgage with a new 15-year mortgage carrying
an interest rate of 7 1/8%. Refinancing will involve $250 in
costs and "points" equal to 1.5 percent of the amount borrowed.
If the borrower plans to live in the house for 15 more years,
does it make economic sense to refinance? Does your answer
change if the borrower only intends to live in the house for 5
more years and will pay off any loans outstanding at that time?
You may ignore taxes and may assume there are no prepayment
penalties on either mortgage.
7.14Chapter 7 Problem 14A company is considering two
alternative methods of producing a new product. The relevant
data concerning the alternatives appear
below:AlternativeAlternativeIIIInitial
investment$64,000$120,000Annual
receipts$50,000$60,000Annual
disbursements$20,000$12,000Annual
depreciation$16,000$20,000Expected life4 yrs6 yrsSalvage
value00At the end of the useful life of whatever equipment is
chosen the product will be discontinued. The company's tax
rate is 50 percent and the discount rate is 10 percent.a.
Calculate the net present value of each alternative.b. Calculate
the benefit cost ratio for each alternative.c. Calculate the
internal rate of return for each alternative.d. If the company is
not under capital rationing which alternative should be chosen?
Why?e. Again assuming no capital rationing, suppose the
company plans to produce the product indefinitely rather than
quit when the equipment wears out. Which alternative should
the company select? Why?f. If the company is experiencing
severe capital rationing, and plans to terminate production when
the equipment wears out, would any of your answers above
change?
7.15Chapter 7 Problem 15 You work for Mattel, a profitable toy
manufacturer, and you are negotiating with Warner Brothers for
the rights to manufacture and sell Harry Potter lunchboxes (you
already sell related action figures). Your marketing department
estimates that you can sell $800 million worth of lunchboxes
per year for 3 years, starting next year. At the end of year 3,
you will liquidate the assets of the business. Given the
following information about this new product investment,
identify the relevant cash flows, and calculate the investment's
net present value, benefit-cost ratio, and internal rate of return.
Make whatever assumptions you feel necessary and explain
them briefly.($ in thousands)Marketing Research Costs, to date$
20,000Initial cost of new equipment$ 300,000Licensing rights
to use images (To be expensed for tax purposes at time 0)$
350,000Expected life5 yrsSalvage value0Depreciation
methodStraight-line over 5 years to 0 salvage valueSelling price
of new equipment in 3 years*$ 130,000Incremental annual
sales$ 800,000Incremental annual production costs$
200,000Incremental annual selling and administrative costs$
80,000Current annual overhead costs $ 200,000Immediate
advertising expenses for launch (To be expensed for tax
purposes at tme 0)$ 190,000Tax rate40%Working capital
required, as a % of production costs7.50% (Needed at time
0.)Minimum required rate of return10%*The company must pay
a 40% tax on the difference between the selling price and the
asset's book value at time of sale.
TMGT 361
Assignment IV Instructions
Lecture/Essay
DMAIC
Though touted as something new (even though the acronym has
been around for decades), DMAIC is one of many ways of
stating the classic problem solving technique. This doesn’t
diminish the importance of problem solving (labeled DMAIC or
otherwise). Research shows that when you give food new titles
more people will eat the food. Rebranding works with
consumers. But hey, if you can’t get someone to eat their
spinach but you can if you call it hand-foraged greens, go for it.
DMAIC doesn’t do anything bad. Quite the opposite, by
whatever name, Lean, Six Sigma, DMAIC, and others are
important things to do. Maybe we need more rebranding to get
more organizations to follow basic principles of management,
quality, efficiency, and safety.
In case you didn’t know it, DMAIC stands for the following.
· Define: define the problem, the gap between what is and what
should be.
· Measure: collect data. To make very clear the current state
(the what is) and the desired state (the what is should be) to
further refine the problem, and to collect other data to be used
in analyzing, improving, and controlling.
· Analyze: analyze the data. This step focuses on zeroing in on
what will likely eliminate the problem (close the gap). Various
decision-making tools, e.g., Pareto, risk analysis, and others,
are used to identify important quality characteristics (variables)
and what the levels should be. Experiments are common at this
stage, which usually require more measurement and data
analysis.
· Improve: formulate and implement a plan to close the gap, to
make the new current state match the desired state.
· Control: maintain the desired state. This requires a plan and
monitoring.
All the problem solving schemes follow the pattern above. The
number of steps and their names change but every problem
solving method starts with a problem and works through the
steps of figuring out what to do to solve the problem, then doing
it, then checking to see how well the problem was solved.
Lean
Lean (L) is a view of efficiency that focuses on work vs waste.
Work includes doing all the things that need done using the
resources in the best way. Waste includes doing what doesn’t
need done. In practice it is common to focus on the waste part
of equation; the less waste, the more Lean. Assigning waste
decreases efficiency and can lead to lower job satisfaction. You
can also raise efficiency by doing more work. However,
efficiency and job satisfaction declines when more work is
required than can be accomplished. As Figure 1 displays, there
is a human side to efficiency affected by management practice.
The callouts are to highlight that you cannot arbitrarily state the
denominator or numerator; you have to see what’s possible; you
have to work at it. Also, values of the denominator and
numerator and the methods to achieve those values are not all
equal—there are legal, ethical, and physical constraints to what
is possible.
Figure 1. Efficiency formula
Individuals have a limit. Can be structured to have greater or
less job satisfaction.
Can result in lower job satisfaction by merely doing it.
In the context of LSS, work does not merely refer to activity or
accomplishment. “Work” means adding customer-desired value.
“Waste” is whatever is not work. Those definitions may appear
simple but there are several nuances with important
ramifications that must be understood in order to be more
efficient. Adding means that something was transformed; there
was some kind of change. If an activity or the use of a resource
does not add something, it cannot be work; it must be waste.
For example, waiting that does not produce a change cannot be
work, therefore, it must be waste.
Customer-desired means that the end-consumer wanted it and
was willing to pay more for it. Though viewing internal
personnel as consumers can be a useful metaphor, the true
consumers are outside the organization. Regardless of a
manager’s desires, an organization’s goals, or laws or
regulations, if the end-consumer does not desire it, it is waste.
Desired means that customer wants it (not must accept it nor has
no better choice). Value means that the thing is something that
the customer wants to pay for; it has an economic value. The
thing can take many forms, e.g., a product purchased or leased,
a result, an experience, a guarantee of future use, an option,
insurance against an event, and many others. The best evidence
of desire is when the customer offers to pay for it, e.g., the
customer offers to pay for an additional feature or function. If
the customer doesn’t want to bid for it, it is a waste. Pay
doesn’t have to be money; the customer can pay by trade, or
with time, attention, or other personal resource.
Following is a taxonomy of typical work and waste categories.
The callouts provide advice about how to increase the work and
reduce the waste.
Focus on quality, standardization, and efficiency.
Just quit doing it!
Short of being fired, say no!
Eliminate by recognizing.
Activity Network Diagram (AND)
The book does a good job of explaining an AND. I want to point
out that it is a type of flow chart that has the following added to
the activity nodes.
· Earliest and latest times an activity can start.
· Earliest and latest times an activity can finish.
· The time it takes to perform the activity.
From the above, it is possible to determine the critical path, the
longest time path through the chart/network when every activity
on that path happens as soon as possible. The critical path tell
you or helps you with the following.
· Defines how quickly it is possible to complete the process.
· By identifying the critical path, tells you what cannot be
delayed if you want to finish as soon as possible.
· Tells you how much slack or delay you can have for activities
not on the critical path.
· Helps you analyze if you can crash (speed up) some activities
to finish sooner. Note that it only makes sense to crash the
critical path. Note that crashing requires expending more
resources (money, overtime, new equipment, outsourcing, etc.).
A cost-benefit analysis is needed to determine if crashing is
worth it. Note that crashing the critical path can create a new
critical path (which may or may not be able to be crashed or
may or may not be worth crashing).
Project Planning Charts
PERT, Gantt, CPM (which is essentially an AND chart), and
many other planning charts are all variants of the basic flow
chart. For some, the nodes are activities; for some the nodes are
milestones or results. Some focus on the progress of the project,
e.g., a snapshot of the actual progress or various steps/nodes
compared to the planned progress. Often, more than one chart is
used. A Gantt, is often used to chart progress and a PERT or
AND is used to show the path. Though the charts are very
useful and can contain a lot of information in themselves, a
complete plan will have rationale, budget, and other elements as
discussed in a previous assignment.
Taguchi
Taguchi’s main contribution is to realize, incorporate into
quality engineering, and to teach the following.
· Tolerancing is really about hitting the target. There is greater
quality loss the more the target is missed. The target (the
nominal value) is the aim.
· Some targets are more is better, some are less is better, some
are nominal is best. But even when more or less is better, there
is usually a target.
· Processes have parameters (characteristics, variables, factors).
Designing a product or process is essentially figuring out what
the values (levels) of the parameters should be.
· Some parameters are more important than others.
· The value of some parameters are harder to achieve or control
than others.
· Some parameters have a big influence on other parameters.
· Some variables outside of the system (noise, environmental
factors) have a big influence on parameters of the process.
· It is often possible to control certain parameters (sometimes
easily, sometimes not so easy; easy is the goal) to make a
process robust, i.e., where the noise factors have less or little
affect and you do not have to be as careful with other process
parameters.
Initial Post
See the general assignment instructions for information about
the quality and quantity expectations and evaluation criteria.
IV. Problem solving and improvement.
a. Describe a SS problem solving situation.* Describe
specifically what would happen at each step of your example
(not just generically, what happens at each of the DMAIC
steps).
b. Summarize Lean; what’s the point of Lean?
c. Prepare an activity network diagram.* The task length
doesn’t have to be days.
d. Outline a project using PERT, CPM, or Gantt chart*.
e. Define the following terms per Taguchi and describe how
they relate to one another: parameter, signal, noise, and robust.
Pick a process and list the parameters of the process; which
parameters are signals and which are noise?
*Remember that though you are supposed to learn from the
book and other sources, you are to use your own experiences
and real life examples to supply information for the assignment.
For any assignment, you cannot merely copy or pattern your
example after an internet or text book example (unless you are
instructed to do so).
For a, c, and d above, you have to use a real situation with
which you are familiar (and not copy or pattern something from
the internet or any other source).
Activity
Work
(value-added)
Waste
(non value-added)
Recognized
Unrecognized
Mandated
Voluntary
Page 4 of 5

More Related Content

Similar to 7.12Chapter 7 Problem 12a). Complete the spreadsheet below by esti.docx

The theory and practice of corporate
The theory and practice of corporate The theory and practice of corporate
The theory and practice of corporate
Babasab Patil
 
Bba402 management accounting
Bba402 management accountingBba402 management accounting
Bba402 management accountingsmumbahelp
 
Fin 534 financial management – fin534 homework
Fin 534 financial management – fin534 homeworkFin 534 financial management – fin534 homework
Fin 534 financial management – fin534 homework
Homework Help Online
 
Bba402 management accounting
Bba402 management accountingBba402 management accounting
Bba402 management accountingsmumbahelp
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
roman nnelson
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
andrey_milev
 
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docx
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docxAssignment Exercise 6–1 Allocating Indirect CostsStudy .docx
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docx
ssuser562afc1
 
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdfFinancial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
hitishaagrawal
 
Construction financial-management
Construction financial-managementConstruction financial-management
Construction financial-management
Annisa Wisdayati
 
Cfa level 1 quantitative analysis e book part 1
Cfa level 1 quantitative analysis e book   part 1Cfa level 1 quantitative analysis e book   part 1
Cfa level 1 quantitative analysis e book part 1
parmanandiskool
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
sergejsvolkovs10
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
garyantione
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
powellabril
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
alicalland
 
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
SlideTeam
 
05_Life Cycle Costing.pptx
05_Life Cycle Costing.pptx05_Life Cycle Costing.pptx
05_Life Cycle Costing.pptx
Itxhamza
 
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
Citrin Cooperman
 
R&D Tax Credits Presentation by Steve Ragow
R&D Tax Credits Presentation by Steve RagowR&D Tax Credits Presentation by Steve Ragow
R&D Tax Credits Presentation by Steve RagowBronwen Elizabeth Madden
 

Similar to 7.12Chapter 7 Problem 12a). Complete the spreadsheet below by esti.docx (19)

The theory and practice of corporate
The theory and practice of corporate The theory and practice of corporate
The theory and practice of corporate
 
Bba402 management accounting
Bba402 management accountingBba402 management accounting
Bba402 management accounting
 
Fin 534 financial management – fin534 homework
Fin 534 financial management – fin534 homeworkFin 534 financial management – fin534 homework
Fin 534 financial management – fin534 homework
 
Bba402 management accounting
Bba402 management accountingBba402 management accounting
Bba402 management accounting
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docx
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docxAssignment Exercise 6–1 Allocating Indirect CostsStudy .docx
Assignment Exercise 6–1 Allocating Indirect CostsStudy .docx
 
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdfFinancial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
 
Construction financial-management
Construction financial-managementConstruction financial-management
Construction financial-management
 
Cfa level 1 quantitative analysis e book part 1
Cfa level 1 quantitative analysis e book   part 1Cfa level 1 quantitative analysis e book   part 1
Cfa level 1 quantitative analysis e book part 1
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Finance homework help
Finance homework helpFinance homework help
Finance homework help
 
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...
 
05_Life Cycle Costing.pptx
05_Life Cycle Costing.pptx05_Life Cycle Costing.pptx
05_Life Cycle Costing.pptx
 
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
Laying Down the Groundwork for Financial Stability for Architecture & Enginee...
 
R&D Tax Credits Presentation by Steve Ragow
R&D Tax Credits Presentation by Steve RagowR&D Tax Credits Presentation by Steve Ragow
R&D Tax Credits Presentation by Steve Ragow
 
Chp 03 Cashflows Warna Hitam
Chp 03 Cashflows Warna HitamChp 03 Cashflows Warna Hitam
Chp 03 Cashflows Warna Hitam
 

More from alinainglis

· Present a discussion of what team is. What type(s) of team do .docx
· Present a discussion of what team is. What type(s) of team do .docx· Present a discussion of what team is. What type(s) of team do .docx
· Present a discussion of what team is. What type(s) of team do .docx
alinainglis
 
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
alinainglis
 
· Prepare a research proposal, mentioning a specific researchabl.docx
· Prepare a research proposal, mentioning a specific researchabl.docx· Prepare a research proposal, mentioning a specific researchabl.docx
· Prepare a research proposal, mentioning a specific researchabl.docx
alinainglis
 
· Previous professional experiences that have had a profound.docx
· Previous professional experiences that have had a profound.docx· Previous professional experiences that have had a profound.docx
· Previous professional experiences that have had a profound.docx
alinainglis
 
· Please select ONE of the following questions and write a 200-wor.docx
· Please select ONE of the following questions and write a 200-wor.docx· Please select ONE of the following questions and write a 200-wor.docx
· Please select ONE of the following questions and write a 200-wor.docx
alinainglis
 
· Please use Firefox for access to cronometer.com16 ye.docx
· Please use Firefox for access to cronometer.com16 ye.docx· Please use Firefox for access to cronometer.com16 ye.docx
· Please use Firefox for access to cronometer.com16 ye.docx
alinainglis
 
· Please share theoretical explanations based on social, cultural an.docx
· Please share theoretical explanations based on social, cultural an.docx· Please share theoretical explanations based on social, cultural an.docx
· Please share theoretical explanations based on social, cultural an.docx
alinainglis
 
· If we accept the fact that we may need to focus more on teaching.docx
· If we accept the fact that we may need to focus more on teaching.docx· If we accept the fact that we may need to focus more on teaching.docx
· If we accept the fact that we may need to focus more on teaching.docx
alinainglis
 
· How many employees are working for youtotal of 5 employees .docx
· How many employees are working for youtotal of 5 employees  .docx· How many employees are working for youtotal of 5 employees  .docx
· How many employees are working for youtotal of 5 employees .docx
alinainglis
 
· How should the risks be prioritized· Who should do the priori.docx
· How should the risks be prioritized· Who should do the priori.docx· How should the risks be prioritized· Who should do the priori.docx
· How should the risks be prioritized· Who should do the priori.docx
alinainglis
 
· How does the distribution mechanism control the issues address.docx
· How does the distribution mechanism control the issues address.docx· How does the distribution mechanism control the issues address.docx
· How does the distribution mechanism control the issues address.docx
alinainglis
 
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
alinainglis
 
· Global O365 Tenant Settings relevant to SPO, and recommended.docx
· Global O365 Tenant Settings relevant to SPO, and recommended.docx· Global O365 Tenant Settings relevant to SPO, and recommended.docx
· Global O365 Tenant Settings relevant to SPO, and recommended.docx
alinainglis
 
· Focus on the identified client within your chosen case.· Analy.docx
· Focus on the identified client within your chosen case.· Analy.docx· Focus on the identified client within your chosen case.· Analy.docx
· Focus on the identified client within your chosen case.· Analy.docx
alinainglis
 
· Find current events regarding any issues in public health .docx
· Find current events regarding any issues in public health .docx· Find current events regarding any issues in public health .docx
· Find current events regarding any issues in public health .docx
alinainglis
 
· Explore and assess different remote access solutions.Assig.docx
· Explore and assess different remote access solutions.Assig.docx· Explore and assess different remote access solutions.Assig.docx
· Explore and assess different remote access solutions.Assig.docx
alinainglis
 
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
alinainglis
 
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
alinainglis
 
· Expectations for Power Point Presentations in Units IV and V I.docx
· Expectations for Power Point Presentations in Units IV and V I.docx· Expectations for Power Point Presentations in Units IV and V I.docx
· Expectations for Power Point Presentations in Units IV and V I.docx
alinainglis
 
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
alinainglis
 

More from alinainglis (20)

· Present a discussion of what team is. What type(s) of team do .docx
· Present a discussion of what team is. What type(s) of team do .docx· Present a discussion of what team is. What type(s) of team do .docx
· Present a discussion of what team is. What type(s) of team do .docx
 
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
· Presentation of your project. Prepare a PowerPoint with 8 slid.docx
 
· Prepare a research proposal, mentioning a specific researchabl.docx
· Prepare a research proposal, mentioning a specific researchabl.docx· Prepare a research proposal, mentioning a specific researchabl.docx
· Prepare a research proposal, mentioning a specific researchabl.docx
 
· Previous professional experiences that have had a profound.docx
· Previous professional experiences that have had a profound.docx· Previous professional experiences that have had a profound.docx
· Previous professional experiences that have had a profound.docx
 
· Please select ONE of the following questions and write a 200-wor.docx
· Please select ONE of the following questions and write a 200-wor.docx· Please select ONE of the following questions and write a 200-wor.docx
· Please select ONE of the following questions and write a 200-wor.docx
 
· Please use Firefox for access to cronometer.com16 ye.docx
· Please use Firefox for access to cronometer.com16 ye.docx· Please use Firefox for access to cronometer.com16 ye.docx
· Please use Firefox for access to cronometer.com16 ye.docx
 
· Please share theoretical explanations based on social, cultural an.docx
· Please share theoretical explanations based on social, cultural an.docx· Please share theoretical explanations based on social, cultural an.docx
· Please share theoretical explanations based on social, cultural an.docx
 
· If we accept the fact that we may need to focus more on teaching.docx
· If we accept the fact that we may need to focus more on teaching.docx· If we accept the fact that we may need to focus more on teaching.docx
· If we accept the fact that we may need to focus more on teaching.docx
 
· How many employees are working for youtotal of 5 employees .docx
· How many employees are working for youtotal of 5 employees  .docx· How many employees are working for youtotal of 5 employees  .docx
· How many employees are working for youtotal of 5 employees .docx
 
· How should the risks be prioritized· Who should do the priori.docx
· How should the risks be prioritized· Who should do the priori.docx· How should the risks be prioritized· Who should do the priori.docx
· How should the risks be prioritized· Who should do the priori.docx
 
· How does the distribution mechanism control the issues address.docx
· How does the distribution mechanism control the issues address.docx· How does the distribution mechanism control the issues address.docx
· How does the distribution mechanism control the issues address.docx
 
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docx
 
· Global O365 Tenant Settings relevant to SPO, and recommended.docx
· Global O365 Tenant Settings relevant to SPO, and recommended.docx· Global O365 Tenant Settings relevant to SPO, and recommended.docx
· Global O365 Tenant Settings relevant to SPO, and recommended.docx
 
· Focus on the identified client within your chosen case.· Analy.docx
· Focus on the identified client within your chosen case.· Analy.docx· Focus on the identified client within your chosen case.· Analy.docx
· Focus on the identified client within your chosen case.· Analy.docx
 
· Find current events regarding any issues in public health .docx
· Find current events regarding any issues in public health .docx· Find current events regarding any issues in public health .docx
· Find current events regarding any issues in public health .docx
 
· Explore and assess different remote access solutions.Assig.docx
· Explore and assess different remote access solutions.Assig.docx· Explore and assess different remote access solutions.Assig.docx
· Explore and assess different remote access solutions.Assig.docx
 
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docx
 
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
· Due Sat. Sep. · Format Typed, double-spaced, sub.docx
 
· Expectations for Power Point Presentations in Units IV and V I.docx
· Expectations for Power Point Presentations in Units IV and V I.docx· Expectations for Power Point Presentations in Units IV and V I.docx
· Expectations for Power Point Presentations in Units IV and V I.docx
 
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docx
 

Recently uploaded

Unit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdfUnit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdf
Thiyagu K
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Levi Shapiro
 
Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
RaedMohamed3
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Atul Kumar Singh
 
Home assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdfHome assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdf
Tamralipta Mahavidyalaya
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
CarlosHernanMontoyab2
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
Jean Carlos Nunes Paixão
 
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
siemaillard
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
DhatriParmar
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
camakaiclarkmusic
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
Celine George
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
vaibhavrinwa19
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
Peter Windle
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
Atul Kumar Singh
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
Jisc
 
Polish students' mobility in the Czech Republic
Polish students' mobility in the Czech RepublicPolish students' mobility in the Czech Republic
Polish students' mobility in the Czech Republic
Anna Sz.
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
Peter Windle
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
Vikramjit Singh
 

Recently uploaded (20)

Unit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdfUnit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdf
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
 
Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
 
Home assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdfHome assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdf
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
 
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
 
Polish students' mobility in the Czech Republic
Polish students' mobility in the Czech RepublicPolish students' mobility in the Czech Republic
Polish students' mobility in the Czech Republic
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
 

7.12Chapter 7 Problem 12a). Complete the spreadsheet below by esti.docx

  • 1. 7.12Chapter 7 Problem 12a). Complete the spreadsheet below by estimating the project's annual after tax cash flow.b). What is the investment's net present value at a discount rate of 10 percent?c). What is the investment's internal rate of return?d). How does the internal rate of return change if the discount rate equals 20 percent?e). How does the internal rate of return change if the growth rate in EBIT is 8 percent instead of 3 percent?Facts and AssumptionsEquipment initial cost $$ 350,000Depreciable life yrs.7Expected life yrs.10Salvage value $$0Straight line depreciationEBIT in year 128,000Tax rate38%Growth rate in EBIT3%Discount rate10%Year012345678910Initial cost350,000Annual depreciation50,00050,00050,00050,00050,00050,00050,000EBI T28,00028,84029,70530,59631,51432,46033,43334,43635,4703 6,534Net present value @ 10%Internal rate of return 7.13Chapter 7 Problem 13In many financial transactions, interest is computed and charged more than once a year. Interest on corporate bonds, for example, is usually payable every six months. Consider a loan transaction in which interest is charged at the rate of 1 percent per month. Sometimes such a transaction is described as having an interest rate of 12 percent per annum. More precisely, this rate should be described as a nominal 12 percent per annum coumpounded monthly.Clearly, it is desirable to recognize the difference between 1 percent per month compounded monthly and 12 percent per annum compounded annually. If $1,000 is borrowed with interest at 1 percent per month compounded monthly, the amount due in one year is:F = $1,000(1.01)12 = $1,000(1.1268) = $1,126.80 This compares to F = $1,000(1+.12) =$1,120.00 for annual compounding.Hence, the monthly compounding has the same effect on the year-end amount due as the charging of a rate of 12.68 percent compounded annually. 12.68 percent is referred to as the effective interest rate. To generalize, if interest is compounded m times a year at an interest rate of r/m per
  • 2. compounding period. Then,The nominal interest rate per annum, or the APR = m(r/m) = r.The effective interest rate per annum,or the EAR = (1+r/m)m - 1.Consider a $100,000, 30 year, fixed-rate, 9 percent, home mortgage requiring monthly payments.a. The monthly interest rate on the mortgage is 9%/12 months = .75%. What is the APR on the mortgage?b. What is the EAR on the mortgage?c. The borrower's payment book will look something like the following. Complete the entries for the first 6 months.Outstanding Balance Beginning of MonthMonthly paymentInterest duePrincipal paymentOutstanding Balance End of MonthDate01-31$100,00002-2803-3104-3005-3106-30d. After paying on this mortgage for 15 years, what will be the remaining principal outstanding? e. Suppose after 15 years the borrower has the opportunity to refinance the remaining principal on the mortgage with a new 15-year mortgage carrying an interest rate of 7 1/8%. Refinancing will involve $250 in costs and "points" equal to 1.5 percent of the amount borrowed. If the borrower plans to live in the house for 15 more years, does it make economic sense to refinance? Does your answer change if the borrower only intends to live in the house for 5 more years and will pay off any loans outstanding at that time? You may ignore taxes and may assume there are no prepayment penalties on either mortgage. 7.14Chapter 7 Problem 14A company is considering two alternative methods of producing a new product. The relevant data concerning the alternatives appear below:AlternativeAlternativeIIIInitial investment$64,000$120,000Annual receipts$50,000$60,000Annual disbursements$20,000$12,000Annual depreciation$16,000$20,000Expected life4 yrs6 yrsSalvage value00At the end of the useful life of whatever equipment is chosen the product will be discontinued. The company's tax rate is 50 percent and the discount rate is 10 percent.a. Calculate the net present value of each alternative.b. Calculate the benefit cost ratio for each alternative.c. Calculate the
  • 3. internal rate of return for each alternative.d. If the company is not under capital rationing which alternative should be chosen? Why?e. Again assuming no capital rationing, suppose the company plans to produce the product indefinitely rather than quit when the equipment wears out. Which alternative should the company select? Why?f. If the company is experiencing severe capital rationing, and plans to terminate production when the equipment wears out, would any of your answers above change? 7.15Chapter 7 Problem 15 You work for Mattel, a profitable toy manufacturer, and you are negotiating with Warner Brothers for the rights to manufacture and sell Harry Potter lunchboxes (you already sell related action figures). Your marketing department estimates that you can sell $800 million worth of lunchboxes per year for 3 years, starting next year. At the end of year 3, you will liquidate the assets of the business. Given the following information about this new product investment, identify the relevant cash flows, and calculate the investment's net present value, benefit-cost ratio, and internal rate of return. Make whatever assumptions you feel necessary and explain them briefly.($ in thousands)Marketing Research Costs, to date$ 20,000Initial cost of new equipment$ 300,000Licensing rights to use images (To be expensed for tax purposes at time 0)$ 350,000Expected life5 yrsSalvage value0Depreciation methodStraight-line over 5 years to 0 salvage valueSelling price of new equipment in 3 years*$ 130,000Incremental annual sales$ 800,000Incremental annual production costs$ 200,000Incremental annual selling and administrative costs$ 80,000Current annual overhead costs $ 200,000Immediate advertising expenses for launch (To be expensed for tax purposes at tme 0)$ 190,000Tax rate40%Working capital required, as a % of production costs7.50% (Needed at time 0.)Minimum required rate of return10%*The company must pay a 40% tax on the difference between the selling price and the asset's book value at time of sale.
  • 4. TMGT 361 Assignment IV Instructions Lecture/Essay DMAIC Though touted as something new (even though the acronym has been around for decades), DMAIC is one of many ways of stating the classic problem solving technique. This doesn’t diminish the importance of problem solving (labeled DMAIC or otherwise). Research shows that when you give food new titles more people will eat the food. Rebranding works with consumers. But hey, if you can’t get someone to eat their spinach but you can if you call it hand-foraged greens, go for it. DMAIC doesn’t do anything bad. Quite the opposite, by whatever name, Lean, Six Sigma, DMAIC, and others are important things to do. Maybe we need more rebranding to get more organizations to follow basic principles of management, quality, efficiency, and safety. In case you didn’t know it, DMAIC stands for the following. · Define: define the problem, the gap between what is and what should be. · Measure: collect data. To make very clear the current state (the what is) and the desired state (the what is should be) to further refine the problem, and to collect other data to be used in analyzing, improving, and controlling. · Analyze: analyze the data. This step focuses on zeroing in on what will likely eliminate the problem (close the gap). Various decision-making tools, e.g., Pareto, risk analysis, and others, are used to identify important quality characteristics (variables) and what the levels should be. Experiments are common at this stage, which usually require more measurement and data analysis. · Improve: formulate and implement a plan to close the gap, to make the new current state match the desired state. · Control: maintain the desired state. This requires a plan and monitoring. All the problem solving schemes follow the pattern above. The
  • 5. number of steps and their names change but every problem solving method starts with a problem and works through the steps of figuring out what to do to solve the problem, then doing it, then checking to see how well the problem was solved. Lean Lean (L) is a view of efficiency that focuses on work vs waste. Work includes doing all the things that need done using the resources in the best way. Waste includes doing what doesn’t need done. In practice it is common to focus on the waste part of equation; the less waste, the more Lean. Assigning waste decreases efficiency and can lead to lower job satisfaction. You can also raise efficiency by doing more work. However, efficiency and job satisfaction declines when more work is required than can be accomplished. As Figure 1 displays, there is a human side to efficiency affected by management practice. The callouts are to highlight that you cannot arbitrarily state the denominator or numerator; you have to see what’s possible; you have to work at it. Also, values of the denominator and numerator and the methods to achieve those values are not all equal—there are legal, ethical, and physical constraints to what is possible. Figure 1. Efficiency formula Individuals have a limit. Can be structured to have greater or less job satisfaction. Can result in lower job satisfaction by merely doing it. In the context of LSS, work does not merely refer to activity or accomplishment. “Work” means adding customer-desired value. “Waste” is whatever is not work. Those definitions may appear simple but there are several nuances with important ramifications that must be understood in order to be more
  • 6. efficient. Adding means that something was transformed; there was some kind of change. If an activity or the use of a resource does not add something, it cannot be work; it must be waste. For example, waiting that does not produce a change cannot be work, therefore, it must be waste. Customer-desired means that the end-consumer wanted it and was willing to pay more for it. Though viewing internal personnel as consumers can be a useful metaphor, the true consumers are outside the organization. Regardless of a manager’s desires, an organization’s goals, or laws or regulations, if the end-consumer does not desire it, it is waste. Desired means that customer wants it (not must accept it nor has no better choice). Value means that the thing is something that the customer wants to pay for; it has an economic value. The thing can take many forms, e.g., a product purchased or leased, a result, an experience, a guarantee of future use, an option, insurance against an event, and many others. The best evidence of desire is when the customer offers to pay for it, e.g., the customer offers to pay for an additional feature or function. If the customer doesn’t want to bid for it, it is a waste. Pay doesn’t have to be money; the customer can pay by trade, or with time, attention, or other personal resource. Following is a taxonomy of typical work and waste categories. The callouts provide advice about how to increase the work and reduce the waste. Focus on quality, standardization, and efficiency. Just quit doing it! Short of being fired, say no! Eliminate by recognizing. Activity Network Diagram (AND)
  • 7. The book does a good job of explaining an AND. I want to point out that it is a type of flow chart that has the following added to the activity nodes. · Earliest and latest times an activity can start. · Earliest and latest times an activity can finish. · The time it takes to perform the activity. From the above, it is possible to determine the critical path, the longest time path through the chart/network when every activity on that path happens as soon as possible. The critical path tell you or helps you with the following. · Defines how quickly it is possible to complete the process. · By identifying the critical path, tells you what cannot be delayed if you want to finish as soon as possible. · Tells you how much slack or delay you can have for activities not on the critical path. · Helps you analyze if you can crash (speed up) some activities to finish sooner. Note that it only makes sense to crash the critical path. Note that crashing requires expending more resources (money, overtime, new equipment, outsourcing, etc.). A cost-benefit analysis is needed to determine if crashing is worth it. Note that crashing the critical path can create a new critical path (which may or may not be able to be crashed or may or may not be worth crashing). Project Planning Charts PERT, Gantt, CPM (which is essentially an AND chart), and many other planning charts are all variants of the basic flow chart. For some, the nodes are activities; for some the nodes are milestones or results. Some focus on the progress of the project, e.g., a snapshot of the actual progress or various steps/nodes compared to the planned progress. Often, more than one chart is used. A Gantt, is often used to chart progress and a PERT or AND is used to show the path. Though the charts are very useful and can contain a lot of information in themselves, a complete plan will have rationale, budget, and other elements as discussed in a previous assignment. Taguchi
  • 8. Taguchi’s main contribution is to realize, incorporate into quality engineering, and to teach the following. · Tolerancing is really about hitting the target. There is greater quality loss the more the target is missed. The target (the nominal value) is the aim. · Some targets are more is better, some are less is better, some are nominal is best. But even when more or less is better, there is usually a target. · Processes have parameters (characteristics, variables, factors). Designing a product or process is essentially figuring out what the values (levels) of the parameters should be. · Some parameters are more important than others. · The value of some parameters are harder to achieve or control than others. · Some parameters have a big influence on other parameters. · Some variables outside of the system (noise, environmental factors) have a big influence on parameters of the process. · It is often possible to control certain parameters (sometimes easily, sometimes not so easy; easy is the goal) to make a process robust, i.e., where the noise factors have less or little affect and you do not have to be as careful with other process parameters. Initial Post See the general assignment instructions for information about the quality and quantity expectations and evaluation criteria. IV. Problem solving and improvement. a. Describe a SS problem solving situation.* Describe specifically what would happen at each step of your example (not just generically, what happens at each of the DMAIC steps). b. Summarize Lean; what’s the point of Lean? c. Prepare an activity network diagram.* The task length doesn’t have to be days. d. Outline a project using PERT, CPM, or Gantt chart*. e. Define the following terms per Taguchi and describe how they relate to one another: parameter, signal, noise, and robust.
  • 9. Pick a process and list the parameters of the process; which parameters are signals and which are noise? *Remember that though you are supposed to learn from the book and other sources, you are to use your own experiences and real life examples to supply information for the assignment. For any assignment, you cannot merely copy or pattern your example after an internet or text book example (unless you are instructed to do so). For a, c, and d above, you have to use a real situation with which you are familiar (and not copy or pattern something from the internet or any other source). Activity Work (value-added) Waste (non value-added) Recognized Unrecognized Mandated Voluntary