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Purple Swift manufactures birdhouses in lots of 10. Each birdhouse takes 45 minu

ID: 424317 • Letter: P

Question

Purple Swift manufactures birdhouses in lots of 10. Each birdhouse takes 45 minutes to paint. After 10 birdhouses are painted, the company switches paint color which requires a one hour changeover. Assume that the company should changeover at the very beginning of the process. The company works 8 hours per shift, one shift per day, 225 days per year. Currently the company has one point booth. What is Purple Swift's paint capacity cushion if it builds 1,500 birdhouses per year? Purple Swift's paint capacity cushion is 1%. Enter your response rounded to one decimal place.

Explanation / Answer

Number of lots for 1500 birdhouses ( @ 10 birdhouses/ lot ) = 1500 / 10 = 150

Number of changeovers required for 150 lots = 150

Total time required for 150 changeovers ( @ 1 hour / changeover ) = 150 hours

Time required to paint one bird house = 45 minutes = 0.75 hours

Therefore, time required to build 1500 birdhouses = 1500 x 0.75 = 1125 hours

Therefore , total time required for 1500 birdhouses which will be painted in 1 year

= Painting time + Changeover time

= 1125 + 150

= 1275 hours

Total amount of time available in a year = 8 hour/ shift x 1 shift/day x 225 days = 1800 hours

Therefore , available capacity cushion

= Total available time - Total utilized time

= 1800 – 1275

= 525 hours

Therefore, Purple swift’s Paint capacity cushion ( %)

= Capacity cushion time / Total available time   x 100

= 525/1800 x 100

= 29.166% ( 29.2 % rounded to 1 decimal place )

PURPLE SWIFT’S PAINT CAPACITY CUSHION = 29.2%

PURPLE SWIFT’S PAINT CAPACITY CUSHION = 29.2%

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