Question: 1 . Consider a workstation with 1 1 machines, each requiring one hour of process time per job with an SCV of 5 . Each

1. Consider a workstation with 11 machines, each requiring one hour of process time per job with an SCV of 5. Each machine costs $10,000. Jobs arrive at a rate of 10 per hour with SCV equal to 1 and they must be filled. Management has specified a maximum allowable average response time (i.e. time a job spends at the station) of 2 hours. Currently it is just over 3 hours (check this). Analyze the following options and determine which is best for reducing average response time.
a) Perform more preventive maintenance at a cost of $8000(over lifetime of the machines). The effect of this on tr and tf is that ultimately ce2 is reduced to 1.
b) Add another identical machine to the workstation at a cost of $10,000.
c)Modify the existing machines to make them faster without changing the SCV, at a cost of $8500. The modified machines would have te =0.96 hours and ce2=5.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!