Question

Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities are always performed in the following sequence.
Resource 1 has a processing time of 6 minutes per unit.
Resource 2 has a processing time of 3 minutes per unit.
Resource 3 has a processing time of 5 minutes per unit.
All three resources are staffed by one worker and each worker gets paid $11 per hour.
(a) what is the cost of direct labor?
(b) what is the labor content?
(c) How much idle time does the worker at resource 3 have per unit?
(d) What is the average labor utilization?
(e) Assume the demand rate is 20 units per hour. What is the takt time?
(f) Assume the demand rate is 20 units per hour. What is the target manpower?

Answer 1

Answer:

A)  cost of direct labor =1.10+0.55+0.92 = $2.57

b. Labor content = 6 min+ 3 min+5 min= 14 min

c. idle time at resource 3 = (6+3)-5 = 4 mins

d.Average labor utilization = labor content / (labor content plus idle time)

                                            = 14/ (14+7) =14/21 =0.66666667*100= 67%

e. takt time = available time / demand

                   = 60 min / 20 = 3 min

f. Target man power = total labor content / Takt time

                                  = 14 /3

                                  = 4.67 = 5 manpower

Explanation:

direct labor per unit

Resource 1 = 6/60 =0.1 hrs*11= $1.10

Resource 2 = 3/60 = 0.05 *11 = $0.55

Resource 3 = 5/60 = 0.08*11 = $0.92

total idle time ; resource 1 = 3 + 4= 7