Question: Step 1 ( 2 5 sec . ) : The plastic tube for the frame is cut to size. Step 2 ( 1 5 sec

Step 1(25 sec.): The plastic tube for the frame is cut to size.
Step 2(15 sec.): The tube is put together.
Step 3(30 sec.): The frame is glued together
Step 4(25 sec.): The frame is cleaned.
Step 5(30 sec.): Paint is sprayed onto the frame.
Step 6(50 sec.): Wheels are assembled.
Step 7(35 sec.): 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
Worker 4: Step 6
Worker 5: Step 7
Assume the workers are paid $10 per hour. Each bicycle is sold for $5 and includes parts that are sourced for $1. The company has fixed costs of $200 per hour. Despite Lance Armstrongs doping confession, there exists substantially more demand for the bicycle than Atlas can supply.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!