Relevant Information Any Information Available for the Activity That Defer upon Alternatives in Taking a Decision.

ENGG956

Week 4 tutorial practice

1.5        

Relevant information any information available for the activity that defer upon alternatives in taking a decision.

E1.10

1. Inspection activities are non-value-added. In every organisation inspection activities are carried out to ensure and maintain the quality of the product. Some organisations have per and post manufacture inspection where as other have high control and continues inspection during various stages of manufacturing.
2.  Moving materials to work stations could vary from organisation to organisation based on the circumstances either it could be value-added or non-value-added to an organisation. Most of the cases it depends on the type of material handling systems adopted by the organisations.
3.          Manufacturing extra inventory to keep employees busy in most of the organisation this is an non value added activity because this activity is carried to reduce the lack time in production during the season .where as in other organisation they do directly sell the inventory in this case it can be an added value.
4. Packing to fill a customer order is a value adding activity.
5. Product design initiatives is a value adding activity

E1.16        Relevant information 

(a)

1. Annual lease paymnt
2. Purchase price
3. Maintaince price
4. Warranty
5. Features such as wireless, power rating etc…

(b)        Supply cost of various utilities like paper, toner and tonner drum.

(c)        By categorising relevant and non-relevant activates helps for better decision and helps to estimate best possible cost for the operation. If they are not categorised properly the estimated cost may vary drastically for an operation and leads to poor decision maker.

E1.17        

1. Uncertainties the CEO faces in the ‘buy hotel’ alternative:

• demand for rooms
• Room pricing or rent for room.
• Hotel maintenance cost
• Security
• Energy cost
• Estimating future demands.

(b)        Uncertainties for the ‘heart monitor’ decision:

• Future demand for equipment at the hospital
• wages for the special technician
• Maintenance or operating costs for the monitors Expected useful life of the monitors

(c)        The ‘buy hotel’ alternative probably has a greater degree of uncertainty because it is outside the core competencies of the hospital and CEO.

E1.18