Use This Scenario for the Following Question(s) -Refer to the Scenario Above

question 88

Multiple Choice

Use this scenario for the following question(s) .
The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. There are 7.5 productive hours available in a day and the manufacturer wishes to produce 400 units. Balance the line by assigning tasks to workstations to fill up as much takt time as possible. Break ties by assigning the longest task first.
$$\begin{array} { | c | c | c | } \hline \text { Task } & \text { Time } ( \mathrm { sec } ) & \text { Predecessor } \\\hline \text { A } & 45 & \cdots \\\hline \text { B } & 50 & \text { A } \\\hline \text { C } & 20 & \text { A } \\\hline \text { D } & 55 & \text { A } \\\hline \text { E } & 15 & \text { D } \\\hline \text { F } & 65 & \text { D } \\\hline \text { G } & 25 & \text { E } \\\hline \text { H } & 35 & \text { B, C, F, G } \\\hline\end{array}$$
-Refer to the scenario above. The process engineer calculates the takt time and examines the task times indicated in the table. He decides to use the minimum cycle time instead and have the workers leave early each day once they have built 400 units. How much earlier would the workers leave?

• A)12 minutes and 53.3 seconds
• B)14 minutes and 20 seconds
• C)16 minutes and 40 seconds
• D)18 minutes and 15 seconds

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Definitions:

Future Cash Flows

Estimated amounts of money expected to be received or paid out over future periods.

Cash Payback Method

A financial analysis method used to determine the time needed for an investment to generate cash flows sufficient to recover the initial investment cost.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Rationing

A strategy or decision-making process that involves allocating and limiting investment funds to various projects to maximize a company's value.