Question: We have a hypothetical business process with three consecutive resources a hand - carwash process, for example. Information about important aspects of the business is

We have a hypothetical business process with three consecutive resources a hand-carwash
process, for example. Information about important aspects of the business is presented in the
table/template below. Note that the template shows you the recommended steps to calculate
various efficiency measurements. You do not need to fill in the shaded cells. Make sure to show
equations and calculations in your work.
Resource R1 R2 R3 PR
Processing time (min/unit/worker)536
Number of workers 213
Hourly wage ($/hour/worker)222024
Capacity (units/hour)
Demand (units/hour)24242424
Flow Rate (units/hour)
Cycle time (min)
Efficiency Measurements R1 R2 R3 PR
Paid time (min/unit)
Labor cost ($/hour)
Cost of direct labor ($/unit) CODL
Labor content (min/unit) LCT
Idle time (min/unit) IDT & TIDT
Employee utilization & ALU
Average labor utilization (ALU)
Average labor utilization (ALU)
(a)[2] Find the flow rate and cycle time, assuming demand is 24 units per hour.
(b)[2] Find the cost of direct labor (CODL) and make a statement about it.
(c)[2] Find the labor content (LCT) and make a statement about it.
5
(d)[3] Find the average labor utilization (ALU) in three ways (Module 04 Slide 48), and make a
statement about it. For this part, make sure to show detailed calculations outside the table.
(e)[1] If the process starts out empty, how long, in minutes, does it take the process to complete
15 units? Note that workers at the same resource can perfectly share work at that resource. You
would answer this part outside the above table. (Hint: Module 04 Slide 35)
Note: in this question, we focus on efficiency of time usage and disregard wage-rate differences;
in the future, you can modify the calculations to measure efficiency of money usage.

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