Consider a process consisting of three resources. Assume there exists unlimited

Question

Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 7 minutes per unit. Resource 2 has a processing time of 3 minutes per unit. Resource 3 has a processing time of 5 minutes per unit. All three resources are staffed by one worker and each worker gets paid $14 per hour. Instruction: "Round "cost of direct labor" and "target manpower" to 2 decimal places. Round 'average labor utilization" percent and "takt time" to 2 decimal places. a. What is the cost of direct labor? e unit b. What is the labor content? minutes per unit How much idle time does the worker at resource 3 have C. per unit? minutes per unit d. What is the average labor utilization? percent Assume the demand rate is 23 units per hour what is the takt time? e. minutes per unit s Assume the demand rate is 23 units per hour. What is the target manpower? minutes per unit

Explanation / Answer

What is the cost of direct labor

Resource 1 is the bottleneck center at 7 minutes per unit. The Direct Labor cost is (7 minutes per resource × 3 resource centers/60 minutes per hour) × $14 per hour = $4.9

What is the labor content?

Labor content = 7 minutes Resource 1 + 3 minutes Resource 2 + 5 minutes Resource 3 = 15 minutes

How much idle time does the worker at resource 3 have per unit

The idle time at Resource 3 = 7 minutes Resource 1 (bottleneck) – 5 minutes Resource 3 = 2 minute idle time

What is the average labor utilization

Labor Utilization = demand/ capacity = 15/21= 71.43%

Assume the demand rate is 23 units per hour. What is the takt time

Takt Time = 1/Demand rate = 1/(23 customers/60 minutes) = 2.61 minutes

Assume the demand rate is 23 units per hour. What is the target manpower

The target manpower = Labor Content/ Takt Time =15/2.61= 5.75

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