An operator is currently operating two machines. Because of an increase in sales the company wishes to have the operator run the maximum number of machines without having machine idle time. The union opposes such a move, arguing that the operator should have idle time during a cycle. After considerable controversy, the company and union agree the operator will handle the maximum number of machines that will allow the operator to be idle at least 3 minutes per cycle. A time study is made, and the following standard times (minutes) are determined for a cycle under the existing assignment of two machines:
Unload, load, and start machine: 2.00
Inspect parts and package: 0.80
Walk to machine 2: 0.20
Wait for machine 2 to stop: 3.50
Unload, load, and start machine 2: 2.00
Inspect parts and package: 0.80
Walk to machine 1: 0.20
Wait for machine 1 to stop: 3.50
a) Based on the time-study data and the agreement between the company and the union, how many machines should be assigned the operator?
b) What is the added cost per unit produced due to the union demand? Assume that the operator costs $15 per hour and each machine costs $30 per hour.