Essay about Decision Analysis Task 1

1004 WordsJul 16, 20135 Pages
A. 1. I recommend that the Rugged Boot assembly line be rearranged to provide a more efficient process. Based on the diagram provided by Catherine Pang showing the layout of the production line, the current line uses eight stations. I determined the efficiency by using the following formula: Efficiency = _____________Σ Task times___________________ (actual number of work stations) x (largest cycle time) The total task time for the work boot assembly is 46 minutes. The actual number of work stations is currently 8 and the largest cycle time is 10 minutes. Based on these numbers the assembly line is operating at 57.5% efficiency. To determine how to better improve the assembly line efficiency, it is…show more content…
B. 1. With the current production schedule it will cost $4,037.04 in labor to produce 5 batches of 10,000 sandals the first month. This is based on the 80% learning curve provided by Catherine Pang from past experience, which equated to a cumulative time of 3,738 hours at $1.08 per hour. The second month will cost $5,154.84 for 4,773 hours at $1.08 per hour. The third month $5,942.16 for 5,502 hours and the fourth month will cost $6,537.24 for 6,053 hours at $1.08 per hour. I would suggest that Shuzworld definitely continue with production of their new sandal line. As can be seen from the numbers above, the labor costs do not greatly increase with substantial increase in production numbers. This is due to ever increasing efficiency gained by workers through repetition of producing the same products. The Excel OM worksheet shows that efficiency increases to a point on the learning curve that basically levels off around the 50th batch which takes around 280 hours. As you can see that is a little over a quarter of the time required to produce the first batch, which took 1,000 hours. 2. A copy of my Excel OM worksheet is attached labeled part B. a. I used the Excel OM Learning Curve module to display the results of the learning curve formulas because it best represented how the learning curve for production workers greatly
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