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 assembly line at Atlas Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized here: Step 1 (30 sec.): The plastic tube for the frame is cut to size. Step 2 (20 sec.): The tube is put together. Step 3 (35 sec.): The frame is glued together Step 4 (25 sec.): The frame is cleaned. 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 a. What is the bottleneck in this process? b. What is the capacity of this assembly line, in finished units/hour? c. What is the utilization of Worker 4, ignoring the production of the first and last units?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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 assembly line
at Atlas Inc. consists of seven work stations, each performing a single step. Stations and
processing times are summarized here:
Step 1 (30 sec.): The plastic tube for the frame is cut to size.
Step 2 (20 sec.): The tube is put together.
Step 3 (35 sec.): The frame is glued together
Step 4 (25 sec.): The frame is cleaned.
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
a. What is the bottleneck in this process?
b. What is the capacity of this assembly line, in finished units/hour?
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 tasks, then the tasks have to be adjacent to each other. Also, assume that
the sequence of steps cannot be changed. What is the maximum possible capacity, in
units per hour, that can be achieved by this reallocation?
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
worker. If work is to be allocated among the four workers such that (i) the tasks can’t be
divided, (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)?
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