An assembly line has been designed to make battery- powered beverage mixers. Tas

ID: 335821 • Letter: A

Question

An assembly line has been designed to make battery- powered beverage mixers. Task details are shown in the table below:

Each station is staffed with one worker with an average hourly
rate of $13.

A) What is the cost of direct labor of this production system if
the demand rate (and the flow rate) is 12 units per hour?

B) hat is the cost of direct labor of this production system if
the demand rate could be increased to 18 units per hour?

StationTask Assigned Task Time (minutes) 3.0 1.5; 2.0 1.5: 1.5 1.0 3.0 2.5 2: 5: 6 7 4

The cycle time is 4 mins (observed from station 3 and station 6).

Cost of direct labor = wages per unit of time / flow rate

a) Flow rate = 12 units per hour

Wage per hour = $13 per hour

Cost of direct labor = 13/12 = $1.08

b) Flow rate = 18 units per hour

Wage per hour = $13 per hour

Cost of direct labor = 13/18 = $0.722

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