Question: Worker 1 : Steps 1 and 2 Worker 2 : Steps 3 and 4 Worker 3 : Step 5 Worker 4 : Step 6 Worker
Worker : Steps and
Worker : Steps and
Worker : Step
Worker : Step
Worker : Step
a What is the bottleneck in this process?
b What is the capacity of this assembly line, in finished unitshour
c What is the utilization of Worker ignoring the production of the first and last
units?
d What is the average labor utilization of the workers, ignoring the production of the
first and last units?
e Assume the workers are paid $ per hour. What is the cost of direct labor for the
bicycle?
f Based on the recommendations of a consultant, Atlas Inc. decides to reallocate the
tasks among the workers to achieve maximum process capacity. Assume that if a
worker is in charge of two tasks, then the tasks have to be adjacent to each other.
Also, assume that the sequence of steps cannot be changed. What is the maximum
possible capacity, in units per hour, that can be achieved by this reallocation?
g Again, assume a wage rate of $ per hour. What would be the cost of direct labor
if single worker would perform all seven steps? You can ignore benefits of
specialization, setup times, or quality problems.
h On account of a reduced demand forecast, management has decided to let go of
worker. If work is to be allocated among the workers such that i the tasks can't
be divided, ii if worker is in charge of two tasks, the tasks have to be adjacent,
iii the tasks are assigned in the most efficient way and iv each step can only be
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