Question: I got for b) $55 profit/hour I got for c) option c at $80/hr I would appreciate any feedback or corrections. thank you! 2. Problem

I got for b) $55 profit/hour I got for c) option

I got for b) $55 profit/hour I got for c) option c at $80/hr I would appreciate any feedback or corrections. thank you!

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) frome glued put tube together Cut plastic tube ALL other parts attached sprey pant frame b. What would be the profits per hour? (20pts/100) profits = flow rate (average price vorreble costs) - fixed costs - 60 blues/ur ($6/16ine - $/ove) - #245/hr ass profits/ur 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 flow case 60 brues/ur flow rate 65 likes/ur Aus Price loevence $6/8ne Ang price / revenue $6/bue Ais price / revenue $6/the fixed (alts $24spur variable (sts $0.50 /us fined costs $220.5/ur fixed carts $245/66 P- 60 bus far (186 lines. $0.90 /85) 1245/hr Variable costs & love & Voriable costs $/bine = $e/ur P= Go blues tho (6-1)- 220.5 P= 65 (6-1)-245 - #19,5 /wr Heslo flow rate 60 bins/ 10% faster at Box option is option 3 at bottle nech

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