5. Refer to the Process Diagram for a Five-Task Line. Assume that there are only two costs: each worker receives wages of $10 per hour, and material cost is $15 per unit. Every unit produced generates $36 in revenue. Assume that every unit produced can be sold and that production is steady. What is the contribution (revenue -costs) per unit? (4 points)

6. Refer to the Process Diagram for a Five-Task Line. One of the two workers assigned to task D is equally competent at task C, and it is decided that this worker will work on both tasks C and D. (i.e., one worker is assigned to task C, one worker is assigned to task D, and one worker moves between tasks C and D.) This third worker moves between task C and task D to maximize the output of the process. What is this lines capacity, in units per eight-hour day? (4 points)

7. Imagine waiting in line to buy tickets for a sporting event. The ticket agent takes, on average, 30 seconds to sell a ticket. The game starts at 5:30 p.m. You have heard from your friends that the line is usually longon average, 60 people. Which of the following is the latest that you can arrive to get in line to make sure you have your ticket before the 5:30 game start time? Explain. (3 points)

a. 4:30 p.m.

b. 4:59 p.m.

c. 5:15 p.m.

d. 5:29 p.m.

Process: Incorporate Now is a legal service that helps small-business owners file the legal forms necessary to become a corporation. To start the process, a customer fills out an online form. Each application for incorporation follows the same process, which involves four steps, each handled by a different department: (1) ERROR CHECKING to make sure the form has all the necessary information takes 10 minutes per applicant; (2) STATE FILING fills out the correct state application where the corporation will be located, which takes 20 minutes per applicant; (3) FEDERAL FILING fills out the federal form and takes 30 minutes per applicant; and (4) BILLING AND DELIVERY bills the customer and delivers the final documentation to her or him. At step 3, two employees each process alternating applications, for example, the first-person processes applicants 1, 3, and 5; the second person processes applicants 2, 4, and 6; and so on. Problem data are summarized in the table below.

8. Refer to the table in Process: Incorporate Now. What is the process capacity (applications/hour) for the applications process line? (3 points)

9. Refer to the table in Process: Incorporate Now. After numerous complaints from the state filing department about their workload, the company decided to add another staff member to this department. By how much will this additional staff member increase the capacity of the entire process, in terms of applications per hour? (3 points)

10. If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost? (3 points)

There are sufficient parts or raw materials, so tasks are never starved. Task times have negligible variability and, over time, workers neither speed up nor slow down. There are no machine breakdowns or maintenance. When there are buffers shown in process flow diagrams, they are large enough to accommodate any amount of work in process (WIP). Travel time and time to transport parts from one operation to another are negligible. All operations run with 100% yield; that is, the operations produce no defective units. All processes are in steady state; thus, you may ignore any startup effects. Consider a five-task process, with five manual tasks to be performed before the product is completed, as diagrammed below: 1 worker 1 worker 1 worker 1 worker 1 worker 15 mins. -0-0-VOLVO A 1 worker 6 mins. 9 mins. 12 mins. 9 mins 15 mins. The task times, shown in minutes, are the times that it takes one worker to perform that task for one unit of product. This line is staffed with six workers, two of whom are assigned to workstation D. Assume that each of the tasks (tasks A through E) are never split among multiple workers. Thus, the two workers doing task d work on individual units, each doing all of task D on the particular unit on which he or she is working. Assume that there is ample equipment so that all workers can perform their tasks. 5) Refer to the Process Diagram for a Five-Task Line. What is the throughput time in minutes)? (3 points)