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A processing company is planning a new product line. The company will build a ne

ID: 3232443 • Letter: A

Question

A processing company is planning a new product line. The company will build a new plant to manufacture the parts for a new product line. The product line will include 10 different models. Annual production of each model is expected to 10,000 units. Each product will be assembled of 15 components. All processing of parts will be accomplished in one factory. There are an average of 4 processing steps required to produce each component, and each processing step takes 1.5 minute (includes an allowance for setup time and part handling). All processing operations are performed at workstations. Each workstation includes a production machine. Each workstation requires a human worker and a floor space of 50 foot 2. The factory operates one shift (2000 hr/yr), determine: I. How many production operations II. How much floor space (ft^2) III. How many workers will be required in the plant?

Explanation / Answer

i. to dind production operation is calculated with the next formula n=PQnm

where P is product variety = 10

Q is product quantity = 10000

n is number of parts of the product =15

m is numer of process of the ´product = 4

nof=6000000 operation in the plant per year

ii. and iii. to calculted floor space, first it is necessary to calculatenumber of workers to know the number of workstatiomns.

To calculate no. of workers, we take the total operation time = 150000hr/yr and divided between factory shift= 2000hr/yr, resulting in 75 hr/ year, meaning that we required 75 workers and 75 workstations.

To obtain total floor, we multiply the number of workstations by area of station (50), resulting in 3750 foot2

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