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PA 4-2 Consider a process consisting of.. Consider a process consisting of three

ID: 390116 • Letter: P

Question

PA 4-2 Consider a process consisting of.. Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 9 minutes per unit. Resource 2 has a processing time of 4 minutes per unit. Resource 3 has a processing time of 3 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? per unit b. What is the labor content? minutes per unit How much idle time does the worker at resource 3 have per unit? minutes per unit d. What is the average labor utilization? percent Assume the demand rate is 17 units per hour. What is the e. takt time? minutes per unit Assume the demand rate is 17 units per hour. What is the target manpower? f. minutes per unit

Explanation / Answer

a. Resource 1 processing time is the highest. Therefore, it is the bottleneck.

Cycle time = 9 minutes

Flow rate = 60/9 = 6.67 units per hour

Hourly labor cost = 3*11 = $ 33

Cost of direct labor = 33/6.67 = $ 4.95 per unit

b) Labor content = 9+4+3 = 16 minutes per unit

c) Resource 3 worker idle time = Cycle time - Resource 3 processing time = 9 - 3 = 6 minutes per unit

d) Average labor utilization = Labor content / (Cycle time * Number of stations) = 16/(9*3) = 59. 26 %

e) Takt time = Available time / Desired output = 60 minutes per hour / 17 units per hour = 3.53 minutes per unit

f) In order to achieve the takt time of 3.53 minutes, resource 1 must be staffed by 3 workers and resource 2 by 2 workers and resource 3 by 1 worker.

So target manpower = 3+2+1 = 6 workers.