Suppose Dunkin Donuts prepares its Munchkins before opening each day. Each batch consists of 500 munchkins of a particular flavor. It takes 15 minutes to setup the equipment to process each batch, and each munchkin takes 1 minute to process. What is the throughput capacity of the process, in munchkins per minute?
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- A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 5 workers, who together produced an average of 90 carts per hour. Workers receive $13 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 5 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.) Before carts per worker per hour After carts per worker per hour b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.) Before carts/dollar cost…In a company that processes insurance claims, the average flow is 10 claims per hour and the average throughput time is six hours. How many claims are in the system on average? If the deman for claims to be processed is seven per hour and the capacity is eight per hour, what is the flow rate?A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 5 workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 4 carts per hour. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
- A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 70 carts per hour. Workers receive $18 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 5 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.) b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.) c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations…A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour, while output increased by four carts per hour.A) Compute labor productivity under each system. Use carts per worker per hour as themeasure of labor productivity.B) Compute the multifactor productivity under each system. Use carts per dollar cost (laborplus equipment) as the measure.C) Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation.A work center containing 7 machines with the same capacity operates 2 shifts per day 6 days per week (5 hours per shift). This is the effective capacity. If the work center has a system efficiency of 89%, what is the expected production in hours per week?
- Suppose that Baldwin will increase its automation to 6.5 this year. Each new unit of automation costs $4 per unit of capacity. An additional $4 per point of automation applies to any new capacity. How much will this investment in automation cost?$24,500,000$28,000,000$56,000,000$49,000,000A company that makes shopping carts for supermarkets and other stores recently purchased somenew equipment that reduces the labor content of the jobs needed to produce the shopping carts.Prior to buying the new equipment, the company used five workers, who produced an average of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased by $10 per hour while output increased by four carts per hour.a. Compute labor productivity under each system. Use carts per worker per hour as the measure oflabor productivity.A company that makes shopping carts for supermarkets and other stores recently purchased somenew equipment that reduces the labor content of the jobs needed to produce the shopping carts.Prior to buying the new equipment, the company used five workers, who produced an average of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased by $10 per hour while output increased by four carts per hour.a. Compute labor productivity under each system. Use carts per worker per hour as the measure oflabor productivity.b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plusequipment) as the measure.c. Comment on the changes in productivity according to the two measures, and on which one youbelieve is the more pertinent for this situation.
- A manufacturer has a production line with 4 serial machines and each unit needs to pass through all machines in order to be completed. The capacity rates of the machines are as follows, 6, 2, 3, and 8 units per hour. What is the capacity rate of the process in units/minute? 2/60 2 19/60 1/60A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by four carts per hour. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.Mack’s guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $300. Because some of the production process is automated, each guitar only requires 10 labor hours. Labor is paid at $10/hour, materials cost is $40/guitar, and overhead is $2,000. a) Calculate the labor and multifactor productivities. b) After some study, the operations manager recommends 3 options to improve the company’s multifactor productivity: (1) increase the sales price by 10 percent, (2) improve quality so that only 10 percent are defective, or (3) reduce labor, material, and overhead costs by 10 percent. Which option has the greatest impact on the multifactor productivity measure?