SESSION 3: SOLUTIONS OF THE PRACTICE PROBLEMS

Textbook Problem 4.1:

Resource 1: 2/10 units/ minute=0.2 units/minute

Resource 2: 1/6 units/ minute=0.1666 units/minute
Resource 3: 3/16 units/ minute=0.1875 units/minute
Resource 2 is the bottleneck and the process capacity is 0.1666 units/minute = 10/ hour

(a) Time to complete 100 units:

• Resource 2 is the bottleneck and the process capacity is 0.1666 units per minute and
cycle time is 6 minutes.
• The process will take 10+6+16minutes=32 minutes to produce the first unit.
• Time to finish 100 units = 32 minutes + 99 * 6 = 626 minutes

(b) Labour content: 10 minutes + 6 minutes + 16 minutes = 32 minutes/ unit

(c) Labour utilization: Labour time used (in hour) / labour time available (in hour)
= (32 * 10)/ (6*60) = 88.89%
(d) Direct labour cost = Wages paid (in hour) / Total flow (in hour)
= (6 * 10) / 10 = $6/ shirt