Figurine Co. buys pre-cut wooden blocks and makes woodenfigurines out of them. The process consists of two
Question:
Figurine Co. buys pre-cut wooden blocks and makes woodenfigurines out of them. The process consists of two steps. First,the Carving step carves the wooden blocks into figurines. Second,the Finishing step polishes and paints these figurines. The processflow diagram is given below: carving--wip--finishing It takes 10minutes to process a figurine at the Carving step and another 10minutes to process it at the Finishing step. Currently, there aretwo workers, one for each step, and they work 8 hours in a day. Theowner of the company is planning to hire a third worker to increaseproduction capacity. This worker will spend the first 4 hours ofthe day at the Carving step (working parallelly with the existingworker) and the last 4 hours of the day at the Finishing step(working parallelly with the existing worker). Suppose the newworker will also take 10 minutes to carve and 10 minutes to finisha figurine. Wooden figurines are always in high demand. Assume thatthis will be a capacity-constrained system even with three workers.Also assume that there are always enough raw materialsavailable.
22. Under the current system with only two workers, how manycompleted units (i.e., units that have undergone both the carvingand the finishing steps) does Figurine Co. manufacture in an 8-hourworkday? If your answer is not an integer, provide at least threedecimal places, e.g., 7.500.
23. What will be the number of completed units manufactured inan 8 hour workday under the new system with three workers? If youranswer is not an integer, provide at least three decimal places,e.g., 7.500.
24. With three workers, what is the maximum number of units thatwill accumulate in the WIP buffer between the Carving and theFinishing steps during a day? If your answer is not an integer,provide at least three decimal places, e.g., 7.500.
25. With three workers, how long (in hours) does an average unitspend in the WIP buffer between the two steps? If your answer isnot an integer, provide at least three decimal places, e.g.,7.500.
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen