Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Xootr LLC is the producer of a high-end, award-winning kick scooter, known as the Xootr (pronounced zooter). The basic Xootr model (known as the Ultra

Xootr LLC is the producer of a high-end, award-winning kick scooter, known as the Xootr (pronounced “zooter”). The basic Xootr model (known as the Ultra Cruz) sells for slightly over $200.

The company started production using a three-step assembly process depicted in the preceding figure. Three workers assemble the Xootr. The processing times are 13 minutes/unit for the first worker, 11 minutes/unit for the second worker, and 8 minutes/unit for the third worker. The assembly operation runs for 35 hours per week. The average salary for an assembly worker is $12 per hour.

As demand for the Xootr grows, the company needs to change its assembly operations to increase its process capacity. Two experts are consulted for advice. The first expert comments: “As we grow our business, we really have to benefit from our workers specializing in a small set of activities. Right now, our longest processing time is 13 minutes per unit. If Xootr wants to double its process capacity, it should simply take each of the three activities and break them up into two subactivities. That way, six workers can produce a unit every 6.5 minutes.”

Another expert, however, disagrees. She observes: “Division of labor leads to frustrating, monotone work for the workers. Instead of having workers specialize in small subactivities, Xootr should do the opposite. Imagine one worker would perform all activities from beginning to end. This would avoid the problem of line balancing and increase the labor utilization. And the workers would see how all pieces come together, providing a more meaningful production experience. If we have six workers operating this way, we can have even more capacity.”

What do you think of the comments of these two experts? Draw a process flow diagram for each of the two expert proposals. For each proposal, compute process capacity, labor utilization, and costs of direct labor, assuming that the processing times in the proposal of the first expert would be cut in half (i.e., it would take 6.5 minutes per unit to do the first set of tasks currently included in activity 1 and another 6.5 minutes per unit to do the second set of tasks). Then, ask yourself what other variables might differ across these two proposals.

Step by Step Solution

3.37 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

The assembly line process for production schedule is shown below The bottleneck activity is the one ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
6093e81fdc432_24288.pdf

180 KBs PDF File

Word file Icon
6093e81fdc432_24288.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

17th edition

007802577X, 978-0078025778

More Books

Students also viewed these Accounting questions