Refer to the accompanying process chart for an automobile oil change. Complete parts (a) and (b) if: The mechanic earns $45 per hour (including variable fringe benefits). The process is performed twice per hour (on average). The shop is open 300 days a year, 11 hours a day. The mechanic does not get paid for idle time. There can be only two cycles per hour regardless of the cycle time.

a. The total labor cost associated with the process is $________ per year. (Enter your response rounded to the nearest whole number.)

b. If steps 7, 10, 12, and 15 were eliminated, the annual labor savings associated with implementing this new process would be

$_______ per year. (Enter your response rounded to the nearest whole number.)

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Process: Subject: Beginning: Ending: Changing engine oil Mechanic Summary Direct customer arrival Number Time Distance Activity Total charges, receive payment of Steps (min) (ft) Operation 7 16.50 Insert Step Transport i 8 5.50 420 Inspect 4 5.00 Append Step Delay 1 0.70 Store 0.30 Remove Step Step Time Distance Step Description No. (min) (ft) 1 0.80 50.0 X Direct customer into service bay 1.80 X Record name and desired service Open hood, verify engine type, inspect hoses, check fluids Walk to customer in waiting area Recommend additional services Wait for customer decision Walk to storeroom Look up filter number(s), find filter(s) Check filter number(s) Carry filter(s) to service pit Perform under-car senrvices Climb from pit, walk to automobile Fill engine with oil, start engine Inspect for leaks Walk to pit Inspect for leaks Clean and organize work area Return to auto, drive from bay X Park the car Walk to customer waiting area Total charges, receive payment 3 2.30 4 0.80 30.0 X 0.60 0.70 7 0.90 70.0 X 1.90 9 0.40 10 0.60 50.0 X 11 4.20 X X X 12 0.70 40.0 13 2.70 14 1.30 15 0.50 40.0 16 1.00 17 3.00 X 18 0.70 80.0 X 19 0.30 20 0.50 60.0 X 21 2.30 X Process: Subject: Beginning: Ending: Changing engine oil Mechanic Summary Direct customer arrival Number Time Distance Activity Total charges, receive payment of Steps (min) (ft) Operation 7 16.50 Insert Step Transport i 8 5.50 420 Inspect 4 5.00 Append Step Delay 1 0.70 Store 0.30 Remove Step Step Time Distance Step Description No. (min) (ft) 1 0.80 50.0 X Direct customer into service bay 1.80 X Record name and desired service Open hood, verify engine type, inspect hoses, check fluids Walk to customer in waiting area Recommend additional services Wait for customer decision Walk to storeroom Look up filter number(s), find filter(s) Check filter number(s) Carry filter(s) to service pit Perform under-car senrvices Climb from pit, walk to automobile Fill engine with oil, start engine Inspect for leaks Walk to pit Inspect for leaks Clean and organize work area Return to auto, drive from bay X Park the car Walk to customer waiting area Total charges, receive payment 3 2.30 4 0.80 30.0 X 0.60 0.70 7 0.90 70.0 X 1.90 9 0.40 10 0.60 50.0 X 11 4.20 X X X 12 0.70 40.0 13 2.70 14 1.30 15 0.50 40.0 16 1.00 17 3.00 X 18 0.70 80.0 X 19 0.30 20 0.50 60.0 X 21 2.30 X

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Now using daka provid ed Total working hours ayear 300 days x II hours day 3300 hours T... View the full answer