Question
A restaurant employs 4 workers who are paid $15 per hour. The production process to make one flow unit at the company requires 8 activities
A restaurant employs 4 workers who are paid $15 per hour. The production process to make one flow unit at the company requires 8 activities which must be performed in the exact order as shown in the table below:
Activity | Activity Time (seconds) | Worker |
Activity 1 | 7 | A |
Activity 2 | 12 | |
Activity 3 | 15 | B |
Activity 4 | 19 | |
Activity 5 | 15 | C |
Activity 6 | 10 | |
Activity 7 | 9 | D |
Activity 8 | 7 |
The above table also shows the processing times for each activity and how the activities were initially allocated between the 4 workers. Worker A performed Activity 1 and Activity 2, Worker B performed Activity 3 and Activity 4, Worker C performed Activity 5 and Activity 6, and Worker D performed Activity 7 and Activity 8.
Answer the following questions (assuming each worker is a separate resource in the process and there is unlimited demand):
Labor Content: 94 sec - Process Capacity: 106 - Flow rate: 106
Direct Labor in $: 0.57 - Average Labor Utilization: 0.69
a) What is the utilization as a percent of worker A (considering that worker A is a separate resource in the process?
b) Initially the company had a strict policy of not allowing workers to overlap any work (no activity can be performed by more than 1 worker) and or allowing workers to perform consecutive activities. Suppose the company agrees to reallocate work between the workers and allows non-consecutive activities to be assigned to any given worker. It also now allows workers to overlap activities. What will the new process capacity be in flow units per second in that situation given that the company must maximize its process capacity? Assume there is unlimited demand.
c) What will be the flow rate in flow units per second given your answer for part d) ? Assume there is unlimited demand
For the following questions, assume that the company reverts back to having 4 workers and that demand is no longer unlimited:
a) Suppose demand is 240 flow units per hour and not unlimited as we previously assumed. What is takt time in seconds?
b) Suppose that takt time is 35 seconds and demand is not unlimited as we had previously assumed. What is the target manpower?
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