A local market research firm has just won a contract for several thousand small

Question

A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 14 such projects in an eight-hour day.

    The firm’s management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 15 minutes for the data gathering and 20 minutes for the analysis.

What is the production (output per hour) for each alternative? (Round your answers to 2 decimal places.)

What is the productivity (output per labor hour) for each alternative? (Round your answers to 2 decimal places.)

How long would it take to complete 1,000 projects with each alternative? (Round your answer to 1 decimal place.)

What would be the labor content (total number of labor hours) for 1,000 projects for each alternative?(Round your answer to 1 decimal place.)

A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 14 such projects in an eight-hour day.

    The firm’s management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 15 minutes for the data gathering and 20 minutes for the analysis.

Explanation / Answer

1.a. For two person system

Time for data gathering: - 15 min/project

Rate 4 projects/hr

Time for analysis:-20 min/project

Rate 3 projects/hr

3 projects/hr (Slower of the two rates) so three project per hour will be the production rate.

The production (output per hour) for each alternative is:-

For One person system:-

14 projects are completed in an eight-hour day.

Production per hour = 14/8 = 1.75 projects / hour

For two person system:-

3 projects/hr (Slower of the two rates) so three project per hour will be the production rate per hour.

2.a. The productivity (output per labor hour) for each alternative is:-

For one person system:-

14 projects are completed in an eight-hour day.

Output per labor hour = 14/8 = 1.75 projects/labor hour.

For two person system:-

3 project/hr / 2 labor hrs/hr = 1.5 project/labor hour.

1. b. How long would it take to complete 1,000 projects with each alternative?

For one person system:-

Throughput time = (work-in-process / throughput rate)

1000 projects / 1.75 projects/hr = 571.42 hours.

For two person system:-

Throughput time = (work-in-process / throughput rate)

1000 projects / 1.50 projects/hr = 666.66 hours.

2. b. What would be the labor content (total number of labor hours) for 1,000 projects for each alternative?

For single person system:-

Total number of labor hours = 1000 projects / 1.75 projects/hr

= 571.42 hours.

For two person system:-

1000 projects / 1.50 projects/hr

= 666.66 hours.

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