Question: BiggerBetter Widgets Co. makes World-Class Widgets using a relatively simple process (see flow chart below) with the following parameters. Their factory works from 9 AM

BiggerBetter Widgets Co. makes World-Class Widgets using a relatively simple process (see flow chart below) with the following parameters. Their factory works from 9 AM to 5 PM; all operations shut down for a 30 minute lunch break from 12:30 to 1:00.

Step 1: Metal Cutting

  • Metal Cutting is performed by an automated cutter which takes one person to operate. The operator loads coils of rolled steel into the cutter, which takes 7.5 minutes. After the coil is loaded, the cutting machine makes a cut every second. Each coil of steel makes exactly 6,000 blanks; one blank is required for each widget.

Step 2: Stamping

  • The Stamping process shapes the widget. This step is performed by one of three separate stamping presses. Two of the stamping machines are older models which stamp a blank into a widget every 3 seconds. The third stamping machine is more efficient and stamps a blank into a widget every 2 seconds.

Step 3: Polishing

  • Polishing step is performed manually by one of 8 employees. Each employee can polish one widget to its finished quality state in 8 seconds.

The profit per World-Class Widget $2.50/unit.

Assume also that there is sufficient demand to match the capacity of the process.

Calculate the processing rate (capacity) of metal cutting step in units/day.

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