Consider the production process of two models: A1 and A2. The company contracted

Question

Consider the production process of two models: A1 and A2. The company contracted to finalize the production of 600 A1 units and 500 A2 units in a year. The defect rates of product A1 and A2 are 10% and 8%, respectively. The conversion duration for product A1 is 15 hours and for product A2 is 18 hours. Suppose the worker efficiency is 90% and availability is 92%. According to the company policy, all defective products must be corrected before shipment to the final user. The average time of rework is 40% of the initial conversion times. If each worker can work for 2000 hours in a year, how many workers are required?

Explanation / Answer

Answer : The yearly worker required is 12 nos. for the whole year to complete the demand of both products A1 and A2.

Refer the below calculation for the product requirements, worker duration and the calculation for all the given parameters in the question, as below.

Product A1 A2 Yearly demand for products A1, A2 (nos.) 600 500 Unit Conversion duration (hours) 15 18 Yearly Conversion Duration Required (hours) 9000 9000 Defect Rate 10% 8% Yearly Defect Qty (nos) 60 40 Rework Time of initial conversion time 40% 40% Unit Rework Duration (in hours) 6 7.2 Yearly Rework Duration (in hours) 360 288 Total Yearly Duration = Yearly Conversion + Yearly Rework ( in hours) 9360 9288 One worker can work for hours in a year (in hours) 2000 2000 Worker Availability 92% 92% Effective Worker availability (in hours) 1840 1840 Worker efficiency 90% 90% Yearly Effective Worker duration (in hours) 1656 1656 How Many Workers required (nos.) = Total Yearly Duration / Yearly Effective Worker duration 5.7 5.6 Total Worker Required in the Year (nos.) 11.3 = 12 nos.

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