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 handcarwash
process, for example. Information about important aspects of the business is presented in the
tabletemplate 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 R R R PR
Processing time minunitworker
Number of workers
Hourly wage $hourworker
Capacity unitshour
Demand unitshour
Flow Rate unitshour
Cycle time min
Efficiency Measurements R R R PR
Paid time minunit
Labor cost $hour
Cost of direct labor $unit CODL
Labor content minunit LCT
Idle time minunit IDT & TIDT
Employee utilization & ALU
Average labor utilization ALU
Average labor utilization ALU
a Find the flow rate and cycle time, assuming demand is units per hour.
b Find the cost of direct labor CODL and make a statement about it
c Find the labor content LCT and make a statement about it
d Find the average labor utilization ALU in three ways Module Slide and make a
statement about it For this part, make sure to show detailed calculations outside the table.
e If the process starts out empty, how long, in minutes, does it take the process to complete
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 Slide
Note: in this question, we focus on efficiency of time usage and disregard wagerate differences;
in the future, you can modify the calculations to measure efficiency of money usage.
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