A toy block consists of three sub blocks assembled into one toy. The setup times for the three blocks are different. Block I has a setup time of 2 hrs., Block II has a setup time of 1 hr., and Block III requires a setup time of 3 hrs. Four trays each with 50 molds are put in the injection machine. The blocks come out prepared every 20 minutes so, once the machine is set up, units each of blocks I, II and III are produced. Thus, the processing time for each block is: 200 20 -hrs/block or 6 secs/block. To keep up with market demand, PRT produces Blocks in batches of 6000 units. Once the mold for the three blocks are prepared then they are assembled. It takes 1 minute to assemble a block toy. There are 3 workers at the assembly workstation. Then the exterior of only Block I is stamped with a Tampograph machine. The Tampograph machine requires a setup time of 2 hrs, and the processing time is 30 secs for Block I. After the block gets stamped then the toy gets packed for distribution. The capacity of the Block packaging unit is 300 block toys/hr. The tabulated details of the process times are available in Exhibit-A. The following questions need to be answered: 1. What is the capacity of the Injection Molding machine, Assembly and the Tampograph machine for a batch size (the number of Block Toys to be produced) of 6000 units? What is the bottleneck and what is the overall system capacity? (5) 2. Was PRT's decision of purchasing an Injection Molding machine correct? Why or why not? (5) 3. If the demand rate for Block Toys is 200 units/hr., and each worker in the assembly is paid $25/hr what is the cost of direct labor? Assume that the labor involved in the injection molding and tampograph machine is negligible, and that packaging is fully automated. (5) 60 200 1 600