Timbuk$2$ manufactures messenger bags in its San Francisco, CA facility. Timbuk$2$ built its business around manufacturing make$-$to$-$order custom messenger bags that it now sells direct to consumers through its website. These bags are manufactured on the "Custom" line. Over time the company also introduced make$-$to$-$stock production of some of its most popular standard models to sell through retail channels such as REI, Amazon, etc. These bags are manufactured on the "Regular" line. By having two lines, Timbuk$2$ is able to dedicate capacity to custom bags and prioritize quick delivery for those units.

The "Regular" line uses consists of five stations corresponding to five activities: $(1)$ Fabric selection & cutting; $(2)$ Sewing; $(3)$ Embroidery; $(4)$ Attach handles and buckles; and $(5)$ Final shaping, inspection, and packaging. The five dedicated stations allows for specialization of the workforce on the regular line. The following table provides the processing time at each station.

Regular Line $1)$ Fabric Selection & cutting $2)$ Sewing $3)$ Embroidery, Labeling, and Trim $4)$ Attach handles & buckles $5)$ Final shaping, inspection, and packaging

Processing Time $($min$)91210913$

The custom line uses a single station of cross$-$trained workers that can complete all five activities from the regular line on a given unit. The total processing time for custom units is the same as for regular units.

Demand for units produced on the regular line is $150$ units per day. Demand for units produced on the custom line is $160$ units per day. Both lines operate for $10$ hours per day.

Rounding instructions.

Carry all calculations to at least $3$ decimal places.

Enter all final answers for units and dollars rounded to the one decimal place.

Enter all final answers in minutes rounded to $3$ decimal places $($e$.$g$.$ Takt time, cycle time$).$

Enter all values for utilization as a percentage rounded to the nearest tenth of a percent, e$.$g$.0\mathrm{.}7138$ should be entered as $71\mathrm{.}4\%.$

Enter the Bottleneck Station as a number $($e$.$g$.1$ for Station $1,2$ for Station $2).$ If there are multiple bottlenecks, enter the lowest number station $($e$.$g$.$ if Stations $2$ and $5$ are both bottlenecks, enter $"2").$

Round up any calculations for number of workers required to the nearest integer.

Part a$)$ Determine the staffing levels on the two lines.

Timbuk$2$ has $32$ workers in total to be assigned to work on either of the two lines.

Workers assigned to the regular line will specialize in their assigned activity.

Timbuk$2$ will assign the minimum number of workers required at each station such that the regular line capacity meets the demand for regular line units.

Timbuk$2$ will cross$-$train all remaining workers and assign them to the custom line.

Having a greater buffer of workers on the custom line will help to prioritize speed for the custom units.

These cross$-$trained workers can float to the regular line as needed when regular workers are absent$.$

For your analysis assume that all $32$ workers are available.

Calculate Takt time, the theoretical minimum number of workers, and the actual total number of workers assigned to the regular line and the custom line.

Performance Metric Regular Line Custom Line

Direct Labor Content Same as regular line

Takt Time $($min$/$unit$)$

Theoretical Minimum #Workers Required to Meet Demand

Actual #Workers Assigned

Enter the number of workers assigned to each station on the regular line in the table below.

Regular line $1)$ Fabric Selection & cutting $2)$ Sewing $3)$ Embroidery, Labeling, and Trim $4)$ Attach handles & buckles $5)$ Final shaping, inspection, and packaging

Number of Workers

Part b$)$ Analyze the performance of the regular line and the custom line by completing the table below to enter your process analysis calculations.

Financial inputs that vary by line:

Worker wages: workers on the custom line are cross$-$trained and make higher wages.

Net revenue per unit $($selling price less variable cost of materials$)$: custom bags are sold direct to consumer and earn a higher net revenue per unit.

The fixed operating costs$/$day vary due to the size of the line and specialized vs$.$ flexible equipment.

Table of Inputs

Input Regular Line Custom Line

Worker Wages $($$$/$hr$)$ $$18$ $$19$

Net Revenue $($$$/$unit$)$

$$48$ $$65$

Fixed Cost $($$$/$day$)$ $$2160$ $$4423$

Process Analysis Table

Performance Metric Regular Line Custom Line

Process Capacity $($units$/$day$)$

Bottleneck Station NA

Flow Rate $($units$/$day$)$

Cycle Time $($min$/$unit$)$

Average Labor Utilization $\%$

$\%\%$

Cost of Direct Labor $($$$/$unit$)$ $ $

Profit $($$$/$day$)$ $ $

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