Consider a process consisting of…

Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities are always performed in the following sequence.

  • Resource 1 has a processing time of 7 minutes per unit.
  • Resource 2 has a processing time of 4 minutes per unit.
  • Resource 3 has a processing time of 6 minutes per unit.

All three resources are staffed by one worker and each worker gets paid $13 per hour.

c) What is the average labor utilization? (%?)

e) Assume the demand rate is 20 units per hour. What is the target manpower? (how many employees?)

f) If one additional worker could be hired, to which resource should the additional resources be assigned? Calculate the process capacity (units/hour)

g) If they could take 1 minute of task time from one resource and give it to another resource (so the labor content remains the same), What would be the new capacity of the process? Assume that there is still only 1 worker per station. (Units/hour)

h) What would be the capacity of the process if they integrated the work so that all workers do all three tasks? Assume there is still only 1 worker per station. (Units/hour)

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