Question
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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