Product/Production Relationships
2.1
The ABC Company is planning a new product line and will build a new plant to manufacture the
parts for a new product line. The product line will include 50 different models. Annual production
of each model is expected to be 1000 units. Each product will be assembled of 400 components.
All processing of parts will be accomplished in one factory. There are an average of 6 processing
steps required to produce each component, and each processing step takes 1.0 minute (includes an
allowance for setup time and part handling). All processing operations are performed at
workstations, each of which includes a production machine and a human worker. If each
workstation requires a floor space of 250 ft
2
, and the factory operates one shift (2000 hr/yr),
determine (a) how many production operations, (b) how much floorspace, and (c) how many
workers will be required in the plant.
Solution
: This problem neglects the effect of assembly time.
(a) n
of
= PQn
p
n
o
= 50(1000)(400)(6) =
120,000,000 operations
in the factory per year.
(c) Total operation time = (120 x 10
6
ops)(1min./(60 min./hr)) = 2,000,000 hr/yr.
At 2000 hours/yr per worker, w =
2 000 000
2000
,
,
/
/
ker
hr
yr
hr
wor
=
1000 workers
.
(b) Number of workstations n = w = 1000. Total floorspace = (1000 stations)(250 ft
2
/station) =
250,000
ft
2
2.2
The XYZ Company is planning to introduce a new product line and will build a new factory to
produce the parts and assembly the final products for the product line. The new product line will
include 100 different models. Annual production of each model is expected to be 1000 units. Each
product will be assembled of 600 components. All processing of parts and assembly of products
will be accomplished in one factory. There are an average of 10 processing steps required to
produce each component, and each processing step takes 30 sec. (includes an allowance for setup
time and part handling). Each final unit of product takes 3.0 hours to assemble. All processing
operations are performed at work cells that each includes a production machine and a human
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 Spring '11
 rev
 Capacity utilization, Factory, Mass production

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