Question
Could you help explain how to do numbers 1-8 from the three activities below please Activity 1 has a processing time of 6 minutes per
Could you help explain how to do numbers 1-8 from the three activities below please
Activity 1 has a processing time of 6 minutes per unit.
Activity 2 has a processing time of 3 minutes per unit.
Activity 3 has a processing time of 5 minutes per unit.
1. Calculate the cost of direct labor.
2. Calculate the labor content.
3. Calculate the average labor utilization. What is the meaning of this measure to the firm?
4. Assume the demand rate is 20 units per hour- What is the takt time? What is the meaning of the takt time?
5. Assume the demand rate remains at 20 units per hour. What is the target manpower?
6. Calculate the capacity of the process be if they could hire one additional worker and assign that worker to one of the Activities. Note the capacity in units per hour. What is the meaning of that change? What effects does it have on the process?
7. If they could take 1 minute of task time from one Activity and give it to another Activity so the labor content could remain the same, what would be the new capacity of the process in units per hour?
8. Calculate the capacity of the process be if they integrated the work so that all workers do all three tasks un units per hour?
9. (5 Points) Given the problem above, why is it important that we clarify that demand is unlimited? Is it reasonable to assume that demand for any process would be unlimited? Why does that matter? Can you think of an example of where this is an issue or a concern?
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