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Task Description Time (Seconds) Cost of 5 Seconds Reduction 1 Assemble frame 65 $400 2 Affix landing gear 75 $500 3 Install battery 65 $300

Task

Description

Time (Seconds)

Cost of 5 Seconds Reduction

1

Assemble frame

65

$400

2

Affix landing gear

75

$500

3

Install battery

65

$300

4

Assemble circuit board

80

$800

5

Insert microprocessor

45

$300

6

Insert UHF receiver

60

$100

7

Install GPS

50

$300

8

Install propellers

70

$700

9

Install connectors

55

$400

10

Mount drone shell

70

$500

A recent surge in demand has convinced the production team that they need to boost their production capacity. The top management set aside $5,000 that they can invest in upscaling the throughput of the process. They would like to make the biggest throughput improvement possible with that money. The tables last column shows how much it costs to cut 5 seconds in the cycle time for each workstation. You can only reduce cycle times by multiples of 5 seconds. For instance, for workstation #2, you can invest $500 to cut 5 seconds, $1,000 to cut 10 seconds and so on However, you could not recommend cutting only 2 seconds at a prorated cost of $200. You must spend the whole $500.

Increase throughput: What would your total investment be to upgrade the production line?

Highlight the sequence of steps you followed to come to that total investment. What would be the upgraded throughput rate of the production line in units/hours?

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