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BUS 515 DISCUSSION QUESTION 1-2 WEEK 3

BUS 515 DISCUSSION QUESTION 1-2 WEEK 3 - PROBLEMS 93...

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• Problem 3 Zelle's Dry Cleaners has collected the following data for its pro- cessing of dress shirts: It takes an average of 3~ hours to dry clean and press a dress shirt, with value-added time estimated at 110 minutes per shirt. Workers are paid for a 7-bour workday and work 5~ hours per day on average, accounting for breaks and lunch; labor utilization is 75 percent in the industry. The dry cleaner completes 25 shirts per day, with an industry standard of 28 shirts per day for a comparable facility. Determine process velocity, labor utilization, and efficiency for the company. • Before You Begin: When solving this problem, remember to keep the units of measure consistent in the numerator and denominator of each equation. PROBLEMS 93 • Solution throughput time Process velocity = value-added time = 210 minutes/shirt = 1.90 110 mmutes/shlrt 5~ hours/day Labor utilization = _. /d = 0.786 or 78.6% ours ay 25 shirts/day Efficiency = __ .. _ .. = 0.89 or 89% Process velocity shows room for process improvement, as throughput time is almost twice that of value-added time. Labor
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