The Costplus Corporation has set a processing quota of 80 insurance claims per 8

Question

The Costplus Corporation has set a processing quota of 80 insurance claims per 8-hour day. The claims process consists of five elements, which are detailed in the following table. Costplus has decided to use an assembly-line arrangement to process the forms and would like to make sure they have set up the line in the most efficient fashion. Construct a precedence diagram for the claims process and calculate the cycle time required to meet the processing quota. Balance the assembly line and show your arrangement of workstations. Calculate the line's efficiency. How many claims can actually be processed on your line? Element Precedence Performance Time (min) . C, D 1. What is the desired cycle time for the assembly line? minutes, Round your answer to 0 decimal places. 2. What is the theoretical minimum number of workstations for the line? Round your answer to O decimal places, the tolerance is +/-0.5. 3. Which of the following arrangements of work stations yields the highest output? a) AB, CDE b) A, BD, CE c) AD, B, CE d) ABD, CE 4. What is the actual cycle time of the line chosen above? What is the actual output? Round your answer to 0 decimal places. claims

Explanation / Answer

1) Desired cycle time for the assembly line

Quota = 80 claims

Working hours = 8

Desired cycle line = (8 * 60) / 80 = 6 minutes

2) Theoretical minimum number of worstations :

Number of workstations = Sum of total task times / Cycle Time

= 4 + 5 + 2 + 1 + 3 / 60 = 1/4 = 2.5

4) Actual cycle time = 6 minutes

Efficiency = 15 / 3 * 6 = 0.8333 = 83.33%

Output = 8 * 60/ 6 = 80 claims

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