A custom motor cycle shop is experiencing high demand from its customers for its services. The ownerperforms all tasks relating to customization. Assume each customer brings one motor cycle forcustomization. The owner needs to determine if he needs to add more help to meet customer demand. Aweek has 40 hours (maximum amount of time available for the owner to work) . The maximum number ofcustomizations that can be done per week is 8 bikes ( if there is no wasted time ). The following is the datacollected from observations for a typical week:Every Friday the shop is cleaned by the owner. This takes 5 hours15 % of the customization needs rework which takes 75 % more time than regular customization15 % of the customers will be called by the owner to reschedule completion by the owner. This takes 2hours per customer.Determine OEE. How should the owner handle the business ?Show all formulas, calculations and results.

The detailed solution is given in Step 2.

Answered: A custom motor cycle shop is…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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