SCM/Ops Production Question

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1.  Power
Toys, Inc. produces a small remote-controlled toy truck on a worker-paced line
consisting of nine work stations with a single worker at each station.  Stations and processing times are summarized
in the following table:

Station

Task

Processing Time (seconds)

1

Mount battery units

75

2

Insert remote control
receiver

85

3

Insert chip

90

4

Mount front axle

65

5

Mount back axle

70

6

Install electric
motor

55

7

Connect motor to
battery unit

80

8

Connect motor to
rear axle

65

9

Mount plastic body

80

a.  How
much time is required to produce a single toy truck?

b.  What
is the bottleneck in this process?

c.  What
is the steady state capacity, in toy trucks per hour, of the assembly line?

d.  What
is the utilization of the worker at work station 2?

e.  How
long would it take to produce 100 trucks starting with an empty system?

f.  The
following table shows the projected costs associated with reducing the
processing time at each work station in 5 second increments.  The theoretical limits on time reduction at
each workstation is 15 seconds less than the current processing time (For
example, Mount Battery Units could be reduced from 75 seconds  to 60 seconds.  To make that full reduction, the cost would
be $1,200.)  Suppose you have $5,000 to
invest in improving the throughput of the process.  Show the sequence of steps you would take to
allocate these funds and at each step show the number of trucks per hour that
will be able to be produced.

g.   

Station

Task

5 Second Reduction Cost

1

Mount battery units

$400

2

Insert remote
control receiver

$300

3

Insert chip

$500

4

Mount front axle

$900

5

Mount back axle

$200

6

Install electric
motor

$100

7

Connect motor to
battery unit

$400

8

Connect motor to
rear axle

$500

9

Mount plastic body

$300

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