Question
A manufacturer was not satisfied with the irregular cycle time and production levels in the manual production of plastic garbage cans with an injection molding
A manufacturer was not satisfied with the irregular cycle time and production levels in the manual production of plastic garbage cans with an injection molding machine. The efficiency of the machine operators varied during the 8-hours shift. The operator ran a part every 43 seconds for the first 2 hours of the shift and every 48 seconds for the middle 4 hours. During the last 2 hours of the shift the cycle time averaged 52 seconds. This efficiency level was essentially the same during all 3 shifts. The manufacturer decided to use a robot to replace the operators and achieved a consistent 41 second cycle time for all three shifts. Determine the following: a) How many garbage cans are produced by the robot cell over three shifts? b) What was the percentage increase in garbage can production with the robot work cell? c) If the cost of the robot was $65,000, the cell design costs were 28% and programming costs were 12% (costs are percentage of robot cost) , the raw material cost is $25/can and the hourly rate for the operator displaced was $15/hour, calculate the payback time and the ROI ?
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