A manufacturing engineer for the No-Hassle Inc. has come up with a new idea: Build a special tool for the common part, which we will simply call Part X. Part X is used for both P and Q. The proposed tool will cost the company $3,000.

This tool will increase total cycle time for part X from 20 minutes to 21 minutes. There is no reduction in material cost or reduction in operating expense. But the new tool will allow the company to off-load 1 minute of Resource B and move it to Resource C. Part X would now take 7 minutes in Resource C and would take 14 minutes in Resource B Here is the proposal in a graphic format – note the changes in common part X. All the other conditions covered in the lecture on the No-Hassle Inc. still apply.

Answer rating: 100% (QA)

Assuming every minute on resources and part cost is 1 per minute Part A Existing Product P Product Q ... View the full answer