Question

1. A product has a market estimate of 97,000 components and requires three processing steps (turning, milling, and drilling) having scrap estimates of P₁ = 0.04, P₂ = 0.01, and P₃ = 0.03. If each component’s cycle is 3.15 minutes, Determine:

1. The amount needed to produce the market-estimated units.
2. The number of workers required, to produce the units in an 8-hour workday with a 12% nonproductive time is allowed.

2. Given below is a worksheet developed from an activity relationship diagram of a company’s departments. Use the information to develop the dimensionless block diagram that depicts maximum efficiency for the company’s operations. Your diagram must show direction of flow.

Dept.	A	E	I	O	U	X
01	3,5	2.4	6.	7		8
02		1,3,4	5,7,8	6
03	1,5	2,	4,6, 7	8
04	7	1,2,6	3,5		8
05	1,3,6		2, 4		7,8
06	5	4	1, 3	2,7,8
07	4		2, 3,	6,	5,1,8
08			2	3,6,	4,5,7	1

Answer 1

1.

a) Market estimate = 97,000 units

Amount needed at beginning of P3 = 97000/(1-0.03) = 100000

Amount needed at beginning of P2 = 100000/(1-0.01) = 101010

Amount needed at beginning of P1 = 101010/(1-0.04) = 105219

Amount needed to produce the market-estimaed units = 105,219

b) Standard time = 3.15/(1-12%) = 3.58 minutes

Number of workers required = 97000*3.58/(8*60) = 724 workers