Question: use these workings for bolded question below: Consider a process consisting of three tasks in a machine-paced (conveyor) line and a wage rate of $15

use these workings for bolded question below:

Consider a process consisting of three tasks in a machine-paced (conveyor) line and a wage rate of $15 per hour. Each task is assigned to a single worker. Assume there is unlimited demand for the product.

Tasks Processing time (minutes)
1 10
2 12
3 8

  1. How much is the process capacity, in units per hour?

Task 2 having the highest cycle time is the bottleneck and its capacity = 60/12 = 5 units per hour.

  1. How much is the total idle time?

Idle time in task 1 = 12 - 10 = 2 minutes Idle time in task 2 = 12 - 12 = 0 minutes Idle time in task 3 = 12 - 8 = 4 minutes

total idle time in a cycle = 2+0+4 = 6 minutes

  1. Compute the average utilization of the line.

Efficiency = 1 - idle time / (no of stations x cycle time) = 1 - 6/(3*12) = 5/6 = 0.833 or 83.33%

  1. What is the cost of direct labor ($/unit)?

Cost of direct labor = total wages per unit of time / the flow rate

= ($15 x 3) / 5 = $9 per unit

Now task 1 is assigned to 2 workers, and tasks 2 and 3 are combined and assigned to 4 workers, as shown below:

Tasks Number of workers
1 2
2, 3 4

  1. How much is the process capacity, in units per hour?

  1. How much is the total idle time?

  1. Compute the average utilization of the line.

  1. What is the cost of direct labor ($/unit)?

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