Process Cycle time Operator (mins.) 1 Cabinet sub-assembly 5.1 2 Cabinet welding 5.3 3 Door sub-assembly 5.9 4 Wiring harness 4.2 5 Door installation 4.4 6 Electrical assembly & inspection 4.8 7 Testing 5.0 8 Packaging 5.7 Average 5.1 Total 40.4The new production facility for Parcel Guard was located inside the facility of the supplier of the cabinet, doors, and base for Parcel Guard. Located just east of Toronto, the supplier's facility was able to set aside enough space to meet the current demand and future growth. Fourteen people worked in the assembly facility for Danby: one supervisor, one material handler, and six people who worked on each of the two assembly lines (see Exhibit 2). The rst operator on each line assembled the cabinet and rsed the parts of the cabinet together using an ultrasonic welder. One operator could assemble and weld nine cabinets per hour. The second operator assembled the door for Parcel Guard. The door featured a complicated design, and a skilled operator could complete one door subassembly in 6.4 minutes. The third operator installed the wiring harness and door sub-assembly. Installing both the wiring harness and door sub-assembly took 8.1 minutes. The fourth operator completed the wiring by connecting the power supply to the lock mechanism, siren, load cells, and main control panel. One operator could install the various electrical components and complete the wiring for 8.5 units in one hour. The fth operator was responsible for the nal inspection as well as testing the electrical mctions of Parcel Guard. The inspection took no more than 90 seconds, and the electrical test was automated through a dedicated software program designed to put Parcel Guard through a number of authentication procedures. The electrical test took a total of 15 minutes, including the labour to initiate the test procedure and read the results. The technician could test three Parcel Guards at one time. The sixth and nal operation was packaging. One operator took a total of ve minutes to package one unit; it then took four minutes to stack six packaged Parcel Guards onto a pallet and prepare the pallet for shipping. INCREASING CAPACITY Martinelli was happy with how production staff was performing but knew that it would not be long before she would be expected to increase capacity. In anticipation of the growth in demand, Martinelli had looked at a number of options. The rst option was to add two new workstations to each of the assembly lines and rebalance the assigned work. Martinelli's industrial engineers had proposed a line balance for eight operators, with an average cycle time of 5.1 minutes (see Exhibit 3). In addition to the added labour, Danby would also need to invest $14,000 in assembly equipment per line. 2 3 4 5 6 Finished Raw materials goods 2 3 4 5 6 Operator Process Cabinet sub-assembly & welding Door sub-assembly Door installation & wire harness OUIAWN- Wiring and electrical assembly Testing PackagingThe engineering team had also suggested the addition of a third line. The third line would be identical to the two existing production lines and would be located in the same facility, just east of Toronto. Although the new line would not require any additional supervision, one more material handler was required, in addition to the six line workers. The material handler received $20 per hour plus benetsthe same rate as the operators who performed the electrical testing and $2 per hour more than all other production workers. In addition, Danby would need to invest $77,000 in machinery and equipment