FasterLock Company manufactures padlocks. Orders for 4,704 padlocks were received during May, with deliveries scheduled evenly throughout the month of June. Locks are produced simultaneously in four manufacturing cells. Time available for production in each cell is 7 hours per day for 21 days during June.

REQUIRED

A. Calculate the takt time.

B. At the end of the first hour of a day’s production, one cell had completed 8 good locks, including one lock that was reworked.

1. Calculate the day-by-the-hour results and the variance.

2. Calculate the first time through (FTT) rate.

3. Assume the company expects an FTT rate of 90%. Was production in the cell out of control during the first hour of the day? Discuss.

C. Suppose the company had received orders for only 4,500 padlocks to be delivered during June. Would this mean that the workers in each cell could work more slowly than when 4,704 locks are ordered?