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. 1. Resource 1 has a processing time of 6 minutes per unit 2. Resource 2 has a processing time of 3 minutes per unit. 3. Resource 3 has a processing time of 5 minutes per unit. All three resources are staffed by one worker and each worker gets paid $ 14 per hour. Use two decimals where applicable. a. What is the cost of direct labor? dollars per unit b. What is the labor content? 14 minutes per unit c. How much idle time does the worker at resource 3 have per unit? minutes per unit d. What is the average labor utilization? percent e. Assuming the demand rate is 21 units per hour, what is the takt minutes per unit time? Assuming the demand rate is 21 units per hour, what is the target manpower?

Explanation / Answer

3 workers

worker

time

R1

6

R2

3

R3

5

Because cycle time = 6 mins

Therefore, idle time of Resource 3 per unit = 6-5= 1mins

Therefore, idle time for R2= 6-3= 3 mins

Total idle time = 3 mins + 1 mins = 4 mins

Now, average labour utilisation= 14/(14+4)=14/18= 0.7777, 77.77%

Because, 1 unit takes= 6 mins =6/60 hours= 1/10 hours

i.e, 10 unit per hour

Direct labour cost per unit = $14*3/10 =$4.2 per unit

Therefore, TAKT time= 60/21= 2.85 mins per unit

worker

time

R1

6

R2

3

R3

5

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