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Atlas Inc Is A Toy Bicycle Manufacturing Company Producing A
Atlas Inc Is A Toy Bicycle Manufacturing Company Producing A
producing a
Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small version of the bike
that Lance Armstrong rode to win his first Tour de France. The assem- bly line at Atlas Inc.
consists of seven work stations, each performing a single step. Sta- tions and processing times
are summarized here: ·
Step 1 (30 sec.): The plastic tube for the frame is cut to size. ·
Step 5 (30 sec.): Paint is sprayed onto the frame. · Step 6 (45 sec.): Wheels are assembled. ·
Step 7 (40 sec.): All other parts are assembled to the frame. Under the current process layout,
workers are allocated to the stations as shown here:
Worker 1: Steps 1, 2
Worker 2: Steps 3, 4
Worker 3: Step 5
Worker 4: Step 6
Worker 5: Step 7
c. What is the utilization of Worker 4, ignoring the production of the first and last units?
d. How long does it take to finish production of 100 units, starting with an empty process?
e. What is the average labor utilization of the workers, ignoring the production of the first and
last units?
f. Assume the workers are paid $15 per hour. What is the cost of direct labor for the bicycle? g.
Based on recommendations of a consultant, Atlas Inc. decides to reallocate the tasks among
the workers to achieve maximum process capacity. Assume that if a worker is in charge of two
h. Again, assume a wage rate of $15 per hour. What would be the cost of direct labor if one
single worker would perform all seven steps? You can ignore benefits of specialization, set-up
times, or quality problems.
i. On account of a reduced demand forecast, management has decided to let go of one worker.
If work is to be allocated among the four workers such that
(ii) If one worker is in charge of two tasks, the tasks have to be adjacent,
(iii) The tasks are assigned in the most efficient way and
(iv) Each step can only be carried out by one worker, what is the new capacity of the line (in
finished units/hour)?
ANSWER
https://solvedquest.com/atlas-inc-is-a-toy-bicycle-manufacturing-company-producing-a/