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5. Bisutti Cams is producing its Racing Camshaft models RCl and RC2. It is a thr

ID: 362297 • Letter: 5

Question

5. Bisutti Cams is producing its Racing Camshaft models RCl 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 120200 140 200 250 150 100

Explanation / Answer

Quarter 1

Total labor hours required = 100*5+200*2 = 900

Labor hours required in the collection operation = 900*20% = 180

Labor hours required in the assembling operation = 900*70% = 630

Labor hours required in the inspection operation = 900*10% = 90

________

Quarter 2

Total labor hours required = 120*5+250*2 = 1100

Labor hours required in the collection operation = 1100*20% = 220

Labor hours required in the assembling operation = 1100*70% = 770

Labor hours required in the inspection operation = 1100*10% = 110

________

Quarter 3

Total labor hours required = 200*5+150*2 = 1300

Labor hours required in the collection operation = 1300*20% = 260

Labor hours required in the assembling operation = 1300*70% = 910

Labor hours required in the inspection operation = 1300*10% = 130

________

Quarter 4

Total labor hours required = 140*5+100*2 = 900

Labor hours required in the collection operation = 900*20% = 180

Labor hours required in the assembling operation = 900*70% = 630

Labor hours required in the inspection operation = 900*10% = 90

__________

Total labor hours required in the collecting process over the four quarters = 180+220+260+180 = 840 hours

Total labor hours required in the assembling process over the four quarters = 630+770+910+630 = 2940 hours

Total labor hours required in the inspection process over the four quarters = 90+110+130+90 = 420 hours

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