​ 6- A manufacturing company producing electronic components is facing rising production costs due to:

2
High labor costs (200 workers at an annual cost of $30,000 per worker).
A 5% increase in raw material waste due to human errors.
Decreased productivity due to the need for extra shifts to meet increased demand.
Proposed Solution:
The company plans to replace 50% of its workers with advanced robotic systems.
Raw material waste will be reduced to only 1%.
Increase productivity by 30% by reducing the production cycle time.
Find:1. Calculate the annual labor cost savings after implementing robotic systems.
2. Calculate the annual raw material savings if the annual raw material cost is $10 million.
3. Calculate the return on investment (ROI) if the cost of purchasing and maintaining the robots
is $5 million over 5 years.
4. Feasibility Analysis:
5. In how many years will the cost of investing in robots be recovered?
6. Is investing in robots worth it compared to the current situation? And why?
27- An automobile manufacturing company employs 100 workers on its assembly line, but productivity
is slow due to human errors and manual repetition.
The company is considering using 20 industrial robots to replace 50% of its workers, resulting in:
A 40% reduction in labor costs.
A 25% improvement in production efficiency.
A reduction in manufacturing errors that cost the company $500,000 annually.
The investment in the robots costs $4 million, with annual maintenance costs of $200,000.
Find the annual labor cost savings if the average worker's salary is $35,000 per year.
Calculate the total annual savings by factoring in the error reduction and efficiency improvement.
Calculate the return on investment (ROI) and the time required to pay back the cost.
What other factors should be considered when replacing workers with robots?
27- An e-commerce company suffers from high operating costs due to its reliance on workers for
warehousing and loading. It plans to replace 40% of its workers with autonomous mobile robots (AMRs),
achieving:
A 35% reduction in labor costs.
A 50% reduction in order preparation time.
A 60% reduction in product shipping errors, saving $200,000 annually.
The investment in the robots costs $2.5 million, with an annual maintenance cost of $150,000. Find
If the company has 500 workers with an average salary of $28,000 per year, calculate the annual labor
savings.
Calculate the total annual savings after accounting for efficiency improvements and error reductions.
Calculate the time required to recover the cost of the robot investment.
How can robot performance be improved using artificial intelligence?
28- An electronics company produces 500,000 units annually and relies on workers for manual
inspection, resulting in:
A 3% error rate, costing the company $750,000 annually in returns and repairs.
Manual inspection takes 15 seconds per unit, reducing productivity.
The company proposes to use intelligent robots equipped with industrial vision, which will:
Reduce errors to just 0.5%.
Improve inspection speed by 40%.
Reduces the need for 30% of inspection workers.
The investment in the robots costs $3 million, with annual maintenance costs of $100,000.
Required:
1- Calculate the annual savings in error costs after reducing the defect rate.
2- If the company has 200 inspection workers, with an annual salary of $25,000 per worker, calculate the
labor savings.
3- Calculate the return on investment (ROI) and the time required to recover the cost. 4- How can robot
accuracy be improved using Al and deep learning techniques?
29- A food packaging company relies on workers for packaging operations. It faces challenges such as:
Rising labor costs due to the need to hire seasonal workers during peak times.
Increasing packaging errors due to human fatigue.
Plans include replacing 70% of workers with robots, improving packaging efficiency by 30%.
The cost of the robot investment is $2 million.
Current annual labor costs are $1.2 million.
The savings result from reducing errors by 40%.
Required:
1- Calculate the annual savings in labor costs.
2- Calculate the savings in error costs.
3- Calculate the time required to recover the investment cost.
30- An automotive manufacturer employs workers in its painting operations. Challenges include:
High labor costs due to the need for skilled workers.
High defect rates due to human intervention in the painting process.
The company plans to replace 60% of its workers with robots, improving efficiency by 35% and
reducing errors by 50%.
The investment cost of the robots is $3.5 million.
Current annual labor costs are $2 million.
Annual error costs are $300,000.
Required:
Calculate the annual labor cost savings.
Calculate the error cost savings.
Calculate the return on investment (ROI) and the time required to recover the cost.
31- A company plans to produce 50 different types of products. For each type, 5,000 units will be
produced annually. Each product contains 750 components, and each component requires 8
processing steps. Each step takes an average of 1.5 minutes.
Each worker works 8 hours per day, for 250 days per year (1,920 hours per year).
Required:
Calculate the total number of products to be manufactured annually.
Calculate the total number of parts manufactured annually.
Calculate the total number of production runs required annually.
Determine the number of workers required to operate the factory.
32- A factory uses a fully automated production line, producing 20 units per minute.
Fixed cost: $500,000 per year. Variable cost: $1.75 per unit.
Required:
Calculate the total annual production if the line operates 16 hours per day, 300 days per year.
Calculate the total cost of production if the factory plans to produce 5,000,000 units per year. If each
unit can be sold for $3.50, what is the expected annual profit?
33- A company plans to produce 80 different types of products.
For each type, 12,000 units will be produced annually.
Each product contains 850 components, and each component requires 12 processing steps.
Each step takes an average of 1.2 minutes.
Each worker works 8 hours per day, (2,000 hours per year).
Required:
Calculate the total number of products manufactured annually.
Calculate the total number of parts manufactured annually.
Calculate the total number of production runs required annually.
Determine the number of workers required to operate the factory.
34- ABC Company plans to build a new factory with 15 different product models.
The annual production of each model is 1,500 units.
Each product consists of 400 components, but 70% of these are purchased (not manufactured in-house).
Each component requires 10 processing operations, and each step takes 40 seconds (including setup).
Each final unit takes 60 minutes to assemble. Work units consist of a production machine and one
worker. Each assembly station consists of one worker with assembly tools. Each work cell and work
station require 30 square meters.
40% of the total area must be added for aisles, storage, shipping, and other facilities.
The factory operates a single shift (2,000 hours/year).
Calculate the total number of processing and assembly operations required annually.
Required:
Determine the number of workers required in the factory (direct labor only).
Calculate the total floor area required for the factory.
Re-answer the previous questions if the factory operates on a two-shift system (4000 hours/year) instead
of a single shift