A Work Cell Is Scheduled to Build 120 Digital Light

question 67

Essay

A work cell is scheduled to build 120 digital light processor (DLP) assemblies each week. These assemblies are later installed into home theatre projection systems. The work cell has 7.5 hours of productive work each day, six days per week. What is takt time for this cell?

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Definitions:

Financial Break-even

The point at which total revenue equals total costs and expenses, resulting in no net loss or gain.

Variable Costs

Expenses that vary directly with the volume of production or the degree of activity within a company.

Fixed Costs

Costs that do not vary with the volume of production or level of activity within a certain range. These are expenses that must be paid regardless of business activity, such as rent or salaries.

Required Return

The minimum expected yield by investors as compensation for the level of risk associated with an investment.