An Assembly Line Has to Perform 10 Work Elements,whose Time

question 128

Multiple Choice

An assembly line has to perform 10 work elements,whose time requirements follow below.An operations analyst has found a solution using some heuristics.The solution follows below.
Solution
$$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Work } \\\text { Elements }\end{array} & \begin{array} { c } \text { Time } \\( \mathrm { sec } ) \end{array} & \text { Station } & \begin{array} { c } \text { Work } \\\text { Elements } \\\text { Assigned }\end{array} \\\hline \mathrm { A } & 45 & 1 & \mathrm {~A} , \mathrm {~B} , \mathrm { C } \\\mathrm { B } & 30 & 2 & \mathrm { D } , \mathrm { E } \\\mathrm { C } & 15 & 3 & \mathrm {~F} , \mathrm { H } \\\mathrm { D } & 30 & 4 & \mathrm { G } , \mathrm { I } \\\mathrm { E } & 50 & 5 & \mathrm {~J} \\\mathrm {~F} & 40 & & \\\mathrm { G } & 30 & & \\\mathrm { H } & 30 & & \\\mathrm { I } & 60 & & \\\text { J } & 80 & & \\\hline\end{array}$$
If the cycle time of the line is 90 seconds,what is the efficiency of the assembly line?

• A) less than 85%
• B) greater than 85% but less than 90%
• C) greater than 90% but less than 95%
• D) greater than 95%

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models such as the Capital Asset Pricing Model (CAPM).

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.

Tax Effect

The impact of taxation on business and investment decisions, including the influence of taxes on cash flows, investment returns, and financial planning.

Cost of Capital

The rate of return that a company must earn on its projects to maintain its market value and attract funds.