EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 10, Problem 10PA
Summary Introduction
Interpretation: Number of clerks and typists to be hired assuming 90% target utilization rate.
Concept Introduction: Utilization is the percentage of time a resource is engaged in a work to complete a task.
Target utilization is the desired utilization percentage which the management desires and assigns manpower according to that target.
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If you can hire an additional worker in order to improve the process capacity you should assign the worker to ?
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Process
Old Line
New Line
Rate per Machine
(parts/hour)
# Machines per Station
Time
(minute)
Rate per Machine
(parts/hour)
# Machines per Station
Time
(minute)
Punching
15
4
4.0
120
1
0.50
Braking
12
4
5.0
120
1
0.50
Assembly
20
2
3.0
125…
A facility has a maximum capacity of 4,000 units per day using overtime and skipping the daily maintenance routine. At 3,500 units per day, the facility operates at a level where average cost per unit is minimized. Currently, the process is scheduled to operate at a level of 3,000 units per day. What is the capacity utilization rate?
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