Needing the answers to Part A, C, D, and F Consider a process consisting of thre
ID: 384879 • Letter: N
Question
Needing the answers to Part A, C, D, and F Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 4 minutes per unit. Resource 2 has a processing time of 3 minutes per unit. Resource 3 has a processing time of 2 minutes per unit. All three resources are staffed by one worker and each worker gets paid $11 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? S 1.65 per unit b. What is the labor content? 9minutes per unit How much idle time does the worker at resource 3 have per unit? C. 7 minutes per unit d. What is the average labor utilization? 45.00 percent Assume the demand rate is 15 units per hour. What is the takt time? minutes per unit Assume the demand rate is 15 units per hour. What is the target manpower? 3.00 minutes per unitExplanation / Answer
The bottleneck activity with maximum time taken is Resource 1 with 4 minutes.
Since Process Capacity is decided by the bottleneck activity, therefore the process capacity is 4 minutes per unit i.e. 60/4 = 15units per hour
Total salary paid in 1 hour
= Hourly wage per worker per resource x Number of resources
= $11 x 3 = $33
Hence cost of direct labor
= Total wage paid in 1 hour/ Hourly capacity of the process
= $33 / 15
= $2.2
COST OF DIRECT LABOR = $2.2 PER UNIT
Labor content = Total time taken in 3 resources = 4 + 3 +2 minutes = 9 minutes
LABOR CONTENT = 9 MINUTES PER UNIT
Cycle time of the process = Processing time of the bottleneck activity = 4 minutes / unit
Processing time at Resource 3 = 2 minutes / unit
Thus , Idle time at Resource 3 = Process cycle time – Processing time at Resource 3 = 4 – 2 = 2 minutes
IDLE TIME WORKER AT RESOURCE 3 HAS IS 2 MINUTES PER UNIT
Average Labor utilization
= Total processing time at 3 resources / ( Number of resources x Cycle time ) x 100
= ( 4 + 3 +2 ) / ( 3 x 4) x 100
= 9/12 x 100
= 75 %
AVERAGE LABOR UTILIZATION = 75 %
Takt time = Available time / Corresponding demand = 60 minutes/ 15 units = 4 minutes/ unit
TAKT TIME = 4 MINUTES/ UNIT
Target manpower = 60 minutes/ 15 units = 4 minutes/ unit
TARGET MANPOWER = 4 MINUTES / UNIT
COST OF DIRECT LABOR = $2.2 PER UNIT
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