AaBbCcDdEe AaBbCcDdEe No Spacing AaBbCcD AaBbCcDdE Heading 1 Heading 2 Normal Styles Pane Create and Share Requ Adobe PDF Signa 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 work stations, 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. b. What would be the profits per hour if Atlas were able to reduce the processing time at the bottleneck by 20 seconds per unit (assume unlimited demand)? c. Assume demand rate is 65 units per hour. Which option is the best in terms of the profits per hour? Option #1: 10% lower material costs, Option #2: 10% lower fixed costs. Option 3:10% faster at bottleneck Lig Focus - + 100% MacBook