5. Bisutti Cams is producing its Racing Camshaft models RC1 and RC2. It is a thr
ID: 360392 • Letter: 5
Question
5. Bisutti Cams is producing its Racing Camshaft models RC1 and RC2. It is a three-state process that involves collecting the appropriate items from inventory, assembling, and then inspecting them. Bisutti Cams is making its labor estimates for the next four quarters for the collecting, assembling and inspecting operations. The RC1 requires 5 hours of labor and the RC2 requires 2 hours. The collecting process uses 20% of its labor resources, the assembling uses 70%, and the inspecting uses 10%. The production schedule for the next four quarters is given below. Calculate the labor hours required in the collecting, assembling, and inspecting processes for the next four quarters. Quarter Endproduct1 RC1 RC2 4 100 120 200 140 200 250 150 100Explanation / Answer
Total labour hour required for any product in any quarter
= Labour requirement in hours/ unit for RC1 X Production quantity for RC1 + Labour requirement in hours / unit for RC2 x Production quantity for RC2
= 5 x Production quantity for RC1 + 2 x Production quantity for RC2
Thus ,
Total labour hours required in quarter 1 = 5 x 100 + 2 x 200 = 500 + 400 = 900 hours
Total labour hours required for quarter 2 = 5 x 120 + 2 x 250 = 600 + 500 = 1100 hours
Total labour hours required for quarter 3 = 5 x 200 + 2 x 150 = 1000 + 300 = 1300 hours
Total labour hours required for quarter 4 = 5 x 140 + 2 x 100 = 700 + 200 = 900 hours
Total labour hours required for collecting, assembling and inspecting processes are presented in below tabular format :
Period ------- > >
1
2
3
4
Total labour hours required (Hours)
900
1100
1300
900
Collecting process @ 20% of total labour hours
180
220
260
180
Assembling process @ 70% of total labour hours
630
770
910
630
Inspecting process @ 10% of total labour hours
90
110
390
90
Period ------- > >
1
2
3
4
Total labour hours required (Hours)
900
1100
1300
900
Collecting process @ 20% of total labour hours
180
220
260
180
Assembling process @ 70% of total labour hours
630
770
910
630
Inspecting process @ 10% of total labour hours
90
110
390
90
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