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Consider a process consisting of 3 resources. Assume there exists unlimited demand for the product.

Resource 1 has a processing time of 7 minutes per unit

Resource 2 has a processing time of 5 minutes per unit

Resource 3has a processing time of 7 minutes per unit.

All three resources are staffed by one worker and each worker gets paid $10 per hour.

Round "cost of labor" and "target manpower" to 2 decimal places. Round "average labor utilization" percent and "takt time" to 2 decimal places

a. What is the cost of direct labor? (per unit)

b. What is the labor content? (minutes per unit)

c. How much idle time does the worker at resource 3 have per unit? (minutes per unit)

d. What is the average labor utilization? (percent)

e. Assume the demand rate is 16 units per hour. What is the takt time? (minutes per unit)

f. Assume the demand rate is 16 units per hour. What is the target manpower? (minutes per unit)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92509052

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