Question: please write out directions and explanations 2. Problem 2 (Process Improvement) . . Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small
please write out directions and explanations
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 workstations, each performing a single step Stations and processing times are summarised 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 335 sec) The frame is glued together Step 4 (25 sec). Paint is sprayed onto the frame. Step 5 B30 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 bicyde 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 (10/100) . b. What would be the profits per hour? (20/100) c. Assume demand rate is 65 units per hour. Which option is the best in terms of the profit per hour? (20/100) Option #1: 10% lower material costs. Option #2: 10% lower fixed costs, Option #3: 10% faster at bottleneck
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