John, an Operations Manager at Clan Corp

question 64

Essay

John, an operations manager at Clan Corp. must set up an assembly line to assemble a computer mouse. The precedence diagram below is defined with task times in parentheses and stated in minutes. There are 480 minutes of assembly time per shift and there is one shift. The forecast (output rate) is 60 units per shift.
a.Compute the cycle time per unit in minutes.
b.Compute the minimum number of workstations required.
c.Use the longest-task-time heuristic to balance the assembly line.
d.Compute the efficiency of your assembly line.

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Definitions:

Reconcile

The process of ensuring that two sets of records or balances are in agreement, often used in accounting and finance to match financial accounts.

Variable Costing

An accounting method in which variable manufacturing costs are included in product costs, while fixed manufacturing costs are treated as expenses in the period they are incurred.

Net Operating Income

The profit a company generates from its regular, core business operations, excluding income from investments and after subtracting operating expenses.

Fixed Manufacturing Overhead

The sum of all the production costs that are not directly linked to the volume of production, such as salaries of managers and depreciation of equipment.