Question: Problem # 1 (10 pts) An insurance companys claim processing department needs to perform 8 tasks as shown below. Task Time (minutes) Preceding Tasks 1

Problem # 1 (10 pts) An insurance companys claim processing department needs to perform 8 tasks as shown below. Task Time (minutes) Preceding Tasks 1 0.4 None 2 0.3 1 3 1.1 1 4 0.2 3 5 0.5 2 6 0.3 3 7 0.6 5 8 0.6 4, 6, 7 They work from 8 AM 5:30 PM with a lunch break of one hour and two 15 minute short-breaks (i.e. available time in each day is 8 hours). Every day they need to process 240 claims on an average. a) (2 pts) Draw the precedence diagram. b) (1.5 pts) What is the required cycle time to finish the work on time? c) (1.5 pts) What is the minimum number of workstations needed? d) (4 pts) Balance the line using the LOT rule. Note: Multiple sequences may be feasible, be sure to use the sequence that is most appropriate according to the LOT rule. Workstation Time Available Eligible Tasks Task Assigned (processing time) e) (1 pt) What is the efficiency after balancing the line?

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