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Problem 1:
We are asked to estimate the flow rate of cars.
R in cars/hour.
We need inventory (I) and also we need
the flow time (T).
I = 24 cars on a quarter mile = 24 x 4 = 96 cars on a mile stretch of the highway
Flow time (T) = on 60 miles, you spend one hour.
So, on one mile, you spend 60/60 = 1 minute
Thus, since I = R x T, the flow rate R = 96 cars/minute = 96 x 60 cars = 5760 cars per hour
Problem 2:
How long does it take to produce the first unit = 16 + 7 + 12 + 5 = 40 minutes
How long does it take for the remaining 99 = 16 x 99 = 1584 minutes
Total time = 1584 + 40 = 1624 mins = 27.07 hours
labor content = labor on a single unit of item = 16 + 7 + 12 + 5 = 40 minutes
Average labor utilization = 40 / (40 + idle times) = 40 / (40 + 0 + 9 + 4 + 11) = 0.625
Alternatively = (1 + 7/16 + 12/16 + 5/16)/4 = 0.625
Cost of direct labor = total wages / flow rate = $40 / (60/16) = $10.67 per unit
Practice Problem 3:
To calculate the bottleneck, we need to calculate the capacities.
What is the capacity at step 1?
It is
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 Spring '10
 DiwasKC
 Management

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