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Answer is complete but not entirely correct. Consider a process consisting of th

ID: 388645 • Letter: A

Question

Answer is complete but not entirely correct. Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 5 minutes per unit Resource 2 has a processing time of 2 minutes per unit Resource 3 has a processing time of 4 minutes per unit All three resources are staffed by one worker and each worker gets paid $12 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? 3.00 per u b. What is the labor content? 11minutes per unit How much idle time does the worker at resource 3 1minutes per unit have per unit? What is the average labor utilization? Assume the demand rate is 15 units per hour. What is d. 73.00 8 percent e the takt time? 4.00 minutes per unit Assume the demand rate is 15 units per hour. What is the target manpower? 12.00 minutes per unit f.

Explanation / Answer

A. Direct labour cost = labour cost per hour /no. Of units manufactured per hour

Labour cost per hour = No of labour's *cost of labour per hour

=3*12 = $36/hr

Resource is the bottle neck and hence the process takes 5 minutes to complete the products. I. E the cycle time will be 5 minutes. No of products products produced = time /production time for each unit= 60 minutes /5 minutes = 12

Direct labour cost = 36/12

=3$ PER UNIT.

B. Labour content is defined as the sum total of time all workers spent on each unit = 5+4+2 =11 units is the summation of time a unit spent in resource A, B, C

C. As the cycle time is 5 minutes, but Resource C completes the task in 4 minutes, so he sits idle for 1 minute

D. Labour utilization is defined as the how effectively a lobour worked i. E (summation of total times of each resource - idle time) /summation of total times of each resource

Resource at each system is the cycle time. I.e. 5 minutes at each resource.. Total summation time = 15 minutes

Idle time at resource A = 0 as the cycle time is 5 minutes and processing time is also 5 minutes

Idle time at resource B = 3, as the cycle time is 5 minutes but the processing time is only 2 minutes.

Similarly for resource C =1

Total idle time =4

Average labour utilization =(15-4)/15

= 73.33% (in the answer u mentioned 73%, hence it was wrong Round it of to 2 decimals

E.Takt time is the effective cycle time required

I. E total time / New production rate

= 60 minutes/12 = 4 minutes per unit

F. To get the demand rate of 15 units, new cycle time should be (60/15)=4 units. To get the cycle time to 4 minutes we need to add an additional resource at resource 1 to bring his processing time to 2.5 and cycle time will be 4 minutes based on the bottle neck at Resource 3.

The target man power = 2.5+2+4= 8.5 minutes per unit

Do let me know if you need further clarification on the above said