Question: 2. Problem #2 (Process Improvement) Atlas Inc. is a toy bicycle manufacturing company producing a five- inch small version of the bike. The assembly line

2. Problem #2 (Process Improvement) Atlas Inc. is
2. Problem #2 (Process Improvement) Atlas Inc. is a toy bicycle manufacturing company producing a five- inch small version of the bike. The assembly line at Atlas Inc. consists of 5 workstations, each performing a single step. Stations and processing times are summarized here: Step 1 (30 sec.): The plastic tube for the frame is cut to size. Step 2 (20 sec.): The tube is put together. Step 3 (35 sec.): The frame is glued together. Step 4 (25 sec.). Paint is sprayed onto the frame. Step 5 (30 sec.): Wheels and all other parts are assembled to the frame. Under the current process layout, workers are allocated to the stations as shown here: Worker 1: Steps 1 and 2 Worker 2: Steps 3 and 4 Worker 3: Step 5 Assume the workers are paid $15 per hour. Each bicycle is sold for $6 and includes parts that are sourced for $1. The company has fixed costs of $200 per hour. There exists substantially more demand for the bicycle than Atlas can supply. Questions: a. Draw a process flow diagram of this process. (10pts/100) What would be the prosper beurt cp100 c. Assume demand rate is 65 units per hour. Which option is the best in terms of the profits per hour? (20pts/100) Option #1: 10% lower material costs, Option #2: 10% lower fixed costs, Option #3: 10% faster at bottleneck

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