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.)

Homework: Homework #2 Score: 0 of 1 pt 3 of 10 (8 complete) X Problem 16 Refer to the accompanying process chart for an automobile oil change. Complete parts (a) and (b) if: The mechanic earns $40 per hour (including variable fringe benefits). The process is performed twice per hour (on average). . The shop is open 290 days a year, 9 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. Process: Subject: Beginning Ending: Changing engine oil Mechanic Direct customer arrival Total charges, receive payment Activity Distance (ft) Insert Step Operation Transport Inspect Delay Store 420 Summary Number Time of Steps (min) 7 16.50 8 5.50 5.00 0.70 1 0.30 4 Append Step 1 Remove Step Distance (ft) 50.0 30.0 X NO 000 X X 70.0 X X Step Time No. (min) 1 0.80 1.80 2.30 0.80 0.60 0.70 7 0.90 8 1.90 9 0.40 10 0.60 11 12 0.70 13 2.70 14 1.30 15 0.50 16 1.00 17 3.00 18 0.70 19 0.30 20 0.50 21 2.30 50.0 X Step Description Direct customer into service bay 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 services 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 4.20 40.0 X X 40.0 X X 80.0 X 60.0 X X