Learning Activity: Are you working {a at enough? : Here are two very different types of automotive products. They are built in very different ways. Compute : the Throughput Flatio [TFl] for each. larrrb-orghini nal assembly: Total Processing time for iob = 22 hours TR U .T s'ime i\".PP?'atiF'\" 214 have 50.5mm ermine mild-onuatch: Total Processing time for iob = 245 hours TR = Total time in operations = 580 hours : For this second question, let's look at a different product and a proposed process design. Below you'll see = =stats around the current design versus that proposed design. Determine if there are significant Economies. of Scale for this product moving from a current Batch Process to a much larger Ftssemble-to-Urder : process proposal. .Currerll design I Proposed Design 5,000 units per year 35,000 units per year 32% throughput ratio 35% throughput ratio ..3E..92.5r.0.09 199' T?\"}fla.9t.u.'i\".9.9ts. ..$. 94.70290.\" .LOEB'nawfsewithasts cost Per Ll n it {DOGS} : costper unit [9065} {Fire there significant Economies of Scale present with the current Proposed Design? Should you : proceed? :Cost per unit + Economies of Scale tip - To calculate the cost per unit, you take the total 3 manufacturing costs and divide by the number of units made per year. ilw'hen evaluating if you are gaining an economies of scale that is significant enough to iustify the increase : in cost, we would erect to see the cost per unit go down [fairly significantly]. If so. then the proposed I design is potentially worth it. If not, then the proposed design is NUT worth it. Throughput Flatio Tip: To calculate the Throughput Patio [TFl], you take the total processing time to do the iob in question, and divide it by the total time in operations. Then convert it to a percentage. Flemember that the throughput ratio compares the actual throughput [rate of production] in either hours or units to the standard [erected] hours or units. The larger the ratio or percentage, the better. A ratio should be interpreted, typically, in the ' same industry and type of product. Ihroughput Flatio = Total processing time [or iob X 100% [TI-II Total time in operations additional reading - If interested, below are links to see more around making Lamboghinis and custom engines