Question: We have a hypothetical business process with three consecutive resources. Information about important aspects of the business is presented in the table/template below. Note that
We have a hypothetical business process with three consecutive resources. Information about important aspects of the business is presented in the table/template below. Note that the template shows you the recommended steps for calculating various efficiency measurements. You do not need to fill in the shaded cells. Make sure to show equations and calculations.
(a)[2] Find the flow rate and cycle time, assuming abundant input. (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. (d)[4] 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. 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. 5
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