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You are a small business owner that operates a juice company. You have three employees in your company all doing different steps in the process.

You are a small business owner that operates a juice company. You have three employees in your company all doing different steps in the process. The order of the steps are: set the bottle up for filling; fill the bottle; and test quality. The time each step takes are: step 1 takes 10 minute; step 2 takes 15 minutes; and step 3 takes 20 minutes. The 3 employees you have only work on one step and are paid accordingly. Ram works on step 1 and is paid $10/hr; Robin works on step 2 and is paid $15/hr; and Anjali works on step 3 and is paid $20/hr. Based on all this information “Conduct Labour Cost Calculation.”

Based on the juice company scenario calculate:

  1. Process Capacity (Use Correct Units)

  2. Cycle Time (Use Correct Units)

  3. Cost of Direct Labour

  4. Total Idle Time

  5. Labour Content

  6. Average Labour Utilization

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