Question: This question has already been answered wrong twice. if you are not sure, please skip but do not provide wrong answer. The present production rate
This question has already been answered wrong twice. if you are not sure, please skip but do not provide wrong answer.
The present production rate from Line-A, supervised by Mr. Sane, was 315 units/day. Under the new contract 420 units/day needed to be supplied. The estimated contribution per unit was Rs. 30. The line employed seven workers. The hourly regular wage per worker was Rs.18, and the overtime wage was Rs.30 per hour. Subassembly A required 16 different tasks. Technological relationship between the activities and the time required to do an activity are given in the table below. The technological relationship establishes the precedence between the activities. For example, activity 4 cannot be started until activity 1 is finished and activity 7 until activities 4 and 5 are finished.
| Activity | Activity Time | Immediate |
| (Seconds) | Predecessor (Important to take into consideration) | |
| 1 | 30 | None |
| 2 | 50 | None |
| 3 | 40 | 1 |
| 4 | 50 | 1 |
| 5 | 20 | 2 |
| 6 | 10 | 3 |
| 7 | 10 | 4,5 |
| 8 | 20 | 2 |
| 9 | 10 | 6 |
| 10 | 40 | 9 |
| 11 | 20 | 7 |
| 12 | 30 | 7 |
| 13 | 50 | 9 |
| 14 | 50 | 10 |
| 15 | 10 | 11 |
| 16 | 40 | 8,12 |
The present configuration of Line-A is given below.
| Worker | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Activities | 1,3 | 2,5 | 4,8 | 6,9,13 | 7,10,11 | 14,15 | 12, 16 |
In the above set up, worker 1 completes activities 1 and 3 and the sub-assembly is passed on to worker 2, who complete activities 2 and 5 and so on. Sane takes great pride in the above design. He states that by uniform loading of workers he has been successful in inculcating a cooperative attitude amongst his workers. Moreover, his line maintains the flexibility of responding to slight increase in production without any major reorganization.
Line-B is supervised by Uma and currently employed only 2 workers. The precedence between the activities and the activity times for sub-assembly B are shown below:
| Activity | Activity Time | Immediate |
| (Seconds) | Predecessor | |
| a | 40 | None |
| b | 50 | None |
| c | 70 | a |
| d | 20 | a |
| e | 50 | a |
| f | 40 | b,c |
| g | 60 | e |
| h | 30 | d,f,g |
The present configuration of Line-B is given below.
| Worker | 1 | 2 |
| Activities | a,b,c,d | e,f,g,h |
In present organization, worker 1 completes the activities a, b, c and d and worker 2, completes the remaining activities. The new requirement for sub-assembly B is 210 units /day.
The shop operates 8 hours/day. But, because of strenuous work, four rest periods of 15 minutes each are provided during the day. It is possible to schedule an overtime of 2 hours each on both the lines. However, previous experience with Line-B clearly indicates that the overtime results in an additional rejection rate of 1% due to fatigue. The cost of one unit rejected is estimated to be Rs.420. In Line A, there is no appreciable increase in the rejection rate due to overtime.
Investigate the possibility of scheduling overtime to meet the new requirements. In case of hiring more workers to meet the new requirement. Please note that you have only 3 workers to hire for both the lines A & B.
Lead Questions:
Find out the current capacities of the both lines. Indentify the bottlenecks
- What are the options available to Sane and Uma to meet new requirements?
- What plan would you suggest to meet the new requirements of both subassemblies A and B within the given constraints?
- Show all calculations with cost data and cost implications to company.
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