Matlab code

Anonymous
timer Asked: Nov 16th, 2016

Question description

The program should conduct a breakeven analysis on each equipment option using these steps:

  • Determine the total variable cost of producing the widgets.
  • Determine the total cost to operate the entered machine for the number of years requested by the user.
  • Determine the total revenue for the number of years requested by the user.

The total cost vector should be calculated for the number of years requested, where each column is a year.

The total revenue vector should be calculated for the number of years requested, where each column is a year.

Determine the total profit for the number of years requested by the user.

The total profit vector should be calculated for the number of years requested, where each column is a year.

The program should now determine the breakeven point in months and in number of widgets for each option.This should be accomplished by creating a mathematical formula to express the breakeven point (time or widgets) as a function of cost.

In God We Trust. All others bring data. ~ W. Edwards Deming Thinking Like an Engineer Breakeven Analysis Project Fall 2016 A “widget” is defined by the Oxford dictionary as: An indefinite name for a gadget or mechanical contrivance, especially a small manufactured item. It is used when the actual product being discussed is irrelevant to the discussion. [Photo courtesy of S. Stephan] Our engineering team has been asked by upper management to look at alternatives to purchase equipment for making widgets. Perform a breakeven analysis to compare the possible equipment options and recommend a solution to implement. UP- 2 Umbrella Projects Project Set Fall 2016: Breakeven Analysis Thinking Like an Engineer, 3e Background A private investment firm has recently acquired the company where you and your team members are employed as engineers. The new owners are very hands-on and want to be involved in major decisions for increasing productivity, efficiency, and profit. However, being successful business owners, they also respect and value the expertise and knowledge your team brings to the operation of the company; they understand how important it is to rely on your know-how and experience when it comes to making decisions in areas where they are not proficient. The new owners are considering making an upgrade in the company’s overall production process and have called upon your team to evaluate the current process and explore several other new options. They are concerned about cost, environmental impacts, and local socio-economic impacts. Being ethically conscious, they are willing to consider environmentally friendly processes that use renewable/sustainable energy sources. They are also curious about automated processes that could help in production. Your team will use the guidelines that follow to conduct a breakeven analysis in order to evaluate all the options. When your analysis is complete, your team will present your recommendation in a short written report based on your findings where you also consider other important factors such as the following: waste reduction, environmental impact, and local economic impact. Your report will be reviewed by both upper management and the investors who have purchased your company. Remember, those reading your report come from a variety of business backgrounds and are not engineers. Your summary report should be written to an audience of readers who do not share your technical knowledge or expertise. Your team must present your recommendation and “translate” your findings in ways these business leaders will find accessible. Keep in mind that your investors want to be convinced by the reasons and evidence you use to support your recommendation. User Input The program that you create will perform a complete Breakeven Analysis for a single option (to complete the analysis for all four options, you will need to run the program four times). Your team then should be able to perform several complete Breakeven Analyses in order to possibly justify purchasing new equipment. The program should ask the user the following questions: • • • The program should ask a user to enter: o The weight of each widget to be produced, in grams o The projected selling price of each widget, in dollars The program should ask a user to enter the following information: o Name of the equipment option, entered as text o The following values for the choice:  Cost to purchase equipment [$]  Energy cost [$/widget]  Labor cost [$/widget]  Maintenance cost [$/widget]  Landfill cost [$/widget]  Machine production [widgets/day]  Material costs [$/lbm] The program should ask the user to enter the plant operation schedule: o Number of days per week the plant will run o Number of weeks per year the plan will run o Number of years the analysis should include Breakeven Analysis The program should conduct a breakeven analysis on each equipment option using these steps: • Determine the total variable cost of producing the widgets. • Determine the total cost to operate the entered machine for the number of years requested by the user. The total cost vector should be calculated for the number of years requested, where each column is a year. • Determine the total revenue for the number of years requested by the user. The total revenue vector should be calculated for the number of years requested, where each column is a year. Thinking Like an Engineer, 3e • Umbrella Projects Project Set Fall 2016: Breakeven Analysis UP- 3 Determine the total profit for the number of years requested by the user. The total profit vector should be calculated for the number of years requested, where each column is a year. The program should now determine the breakeven point in months and in number of widgets for each option. This should be accomplished by creating a mathematical formula to express the breakeven point (time or widgets) as a function of cost. Summary of Results In the program, summarize the results in a manner similar to the following in the Command Window: The machine listed below will operate for ## days per year. Option: NAME Producing ## widgets each week will generate per year: Revenue: $#### Cost: $#### Total number of widgets produced per year: #.#e+### The breakeven time is # months or # widgets. The total profit after # years is $####. The revenue and cost should be displayed with no decimal places, and the total number of widgets produced should be displayed in exponential notation with one decimal place. In addition, the lines should be shown using tabs to indent from the left margin as shown. The "NAME" character in the output displayed above will be text that was entered in the program you created. The number of months to breakeven, widgets to breakeven, total number of years, and the total profit should all be displayed with no decimal places. Finally, your program should create two figures: • The program should generate a proper plot with the number of widgets produced on the abscissa, and the revenue and total cost on the ordinate for the equipment option. This figure should also include a large point on the line to indicate the found breakeven point. • The program should generate a proper plot to display the profit of the equipment choice with respect to time. This figure should also include a large point on the line to indicate the found breakeven point. Options to Evaluate The investors have asked that you consider running your analysis for at least 5 years. Your current widgets weigh 300 grams and the market analysis shows that you can sell the product for $3.15/widget. Finally, the investors ask that the recommended option breakeven in no more than 10 months. With these considerations in mind, the options are explained in subsequent paragraphs. First, the current process is still functioning and may be considered. The equipment is older, harder to maintain, and less energy efficient than it was when it was new. However, you will not need to downsize the workforce and will not need to make a new investment. The particular details are as follows: • • • • • • • • • • Name: Current Initial Cost: $0 Energy Cost: $0.32/widget Labor Cost: $0.30/widget Maintenance Cost: $0.25/widget Landfill Cost: $0.20/widget Material Cost: $3.00/lbm Widgets per day: 1500 Number of days per week: 5 Number of weeks per year: 48 UP- 4 Umbrella Projects Project Set Fall 2016: Breakeven Analysis Thinking Like an Engineer, 3e Second, to increase production and reduce labor costs, you may consider an automated option. The process is almost exclusively automated allowing more operational time and eliminating most labor costs. However, you must downsize the plant to 10% of the current workforce (leaving mainly accountants and operations management) and the cost of maintenance (due to many more machines) will increase. The particular details are as follows: • • • • • • • • • • Name: Robots R Us Initial Cost: $75,000 Energy Cost: $0.30/widget Labor Cost: $0.00/widget Maintenance Cost: $0.40/widget Landfill Cost: $0.20/widget Material Cost: $3.00/lbm Widgets per day: 2000 Number of days per week: 7 Number of weeks per year: 48 Then, considering energy efficiency, you may consider an option that allows for the use of clean and reusable energy. This process is outfitted with solar cells and other various implementations to fully operate the plan without using electricity from outside resources, at a much higher initial cost. You also will not need to downsize the workforce at all. The particular details are as follows: • • • • • • • • • • Name: Clean Energy Today Initial Cost: $90,000 Energy Cost: $0.00/widget Labor Cost: $0.30/widget Maintenance Cost: $0.20/widget Landfill Cost: $0.20/widget Material Cost: $3.00/lbm Widgets per day: 1500 Number of days per week: 5 Number of weeks per year: 48 Finally, you may also consider a lean manufacturing process. This process recaptures all scrap materials from the process, whether it comes from defective widgets or any other scrap from the process, and recycles the waste back into the system. This not only eliminates landfill costs but also reduces the cost of the material used. While it again has a higher initial cost, you will also again not need to downsize the workforce. The details are as follows: • • • • • • • • • • Name: Reclaim and Save Initial Cost: $90,000 Energy Cost: $0.25/widget Labor Cost: $0.30/widget Maintenance Cost: $0.20/widget Landfill Cost: $0.00/widget Material Cost: $2.95/lbm Widgets per day: 1500 Number of days per week: 5 Number of weeks per year: 48 Thinking Like an Engineer, 3e Umbrella Projects Project Set Fall 2016: Breakeven Analysis UP- 5 Project Submission Code Due on Blackboard (Lecture Section), Friday November 18 @ 10 pm Name the .m file P1_TeamNumber.pdf,. Your TeamNumber is your three-digit section number and your two-digit team number (such as 00122, for Section 001 and Team 22). You will need to turn your code into the merged lecture section of BlackBoard (ENGR 1300-001). The code will be graded for documentation (PLEASE include comments!), neatness, organization, unit consistency, proper plot rules, analysis limits, and ability to handle input value fluctuations. It should follow all proper coding rules, containing header information in every .m file INCLUDING TEAM MEMBER NAMES. The code should be submitted on Blackboard. Late submissions will be penalized 25 percent on the code portion per day, including weekends since submission is electronic. The code portion of this project is worth 70% of the overall project. NOTE: Only ONE member from team is to upload your code and report. Only one person’s submission will be considered. The coinciding grade will be applied to all team members. Project Summary Report Due on Blackboard (Lab Section), Friday November 18 @ 10 pm Your team will submit a well-supported report to summarize your findings and your recommendation. The project summary portion of this project is worth 30% of the overall project and will be evaluated for completeness, support, attention to audience, and clarity. You will need to turn your code into the lab section of BlackBoard (ENGR 1300-1XX). Your Project Report Summary should follow all the best practices for clear and correct professional writing. Late submissions will be penalized 25 percent per day. Below are specific guidelines for your team Project Report Summary: • Draft a written report of no more than one page. • Use memo style in the heading of your report that includes all team members’ names. Here is a link to a memo style guide: https://owl.english.purdue.edu/owl/resource/590/04/ • State your team’s recommendation clearly at the beginning of the report. • Support the recommendation with evidence from the findings of your breakeven analysis. This is your primary argument for purchasing the “widget” your team recommends. • Include other considerations for the investors to take under advisement. Besides cost and breakeven point, what other impact could your recommendation have? • Include at least one table or graph, with appropriate captioning, to help support your findings. All numerical data should be included in this table or graph. • Proofread your Project Summary Report for typos, grammar, mechanics, and clarity. You investors already respect your team members for their engineering expertise, but your writing will either further enhance or detract from your credibility. • Review format of your Project Summary Report. Are fonts, margins, spacing, and other formatting decisions made to heighten the positive impression of your message and your team’s professionalism? • Submit your Project Summary Report in Blackboard. Your instructor will evaluate the report and assign the same grade to all team members. NOTE: Only ONE member from team is to upload your code and report. Only one person’s submission will be considered. The coinciding grade will be applied to all team members.

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