Consider a process consisting of three resources. Assume there exists unlimited

Question

Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 6 minutes per unit. Resource 2 has a processing time of 1 minutes per unit Resource 3 has a processing time of 4 minutes per unit All three resources are staffed by one worker and each worker gets paid $14 per hour. Instruction: "Round "cost of direct labor" and "target manpower" to 2 decimal places. Round 'average labor utilization" percent and "takt time" to 2 decimal places. a. What is the cost of direct labor? per unit minutes per unit How much idle time does the worker at resource 3 have per unit? C. minutes per unit d. What is the average labor utilization? percent Assume the demand rate is 15 units per hour. What is the takt time? e. minutes per unit Assume the demand rate is 15 units per hour. What is the target manpower? minutes per unit

Explanation / Answer

A. Cost of direct labour:

for calculating this we first have to calculate how much does the labour get paid in one minute as the resources only takes minutes to get processed. It is given that labourers are paud $14 per hour, therefore in 60 mins=$14 and in one minute = 14/60 = 0.24.

Now starting with Resource 1: Resource 1 takes a time of 6 minutes. therefore the labour cost becomes 0.24 multiplied by 6 which is equal to 1.44

Resource 2: takes 1 minute so the labour cost becomes 0.24 dollars

Resource 3: resource 3 takes 4 minutes of processing time which makes the labour cost 1.68 dollars that is 0.24 multiplied by 4.

The total direct labour cost comes out to be the total of all three of the above .Resource 1 + Resource 2 + Resource 3 = 1.44+0.24+1.68=2.64 dollars.

direct labour cost = 2.64 dollars

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