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What is the best way to group the work represented by the 16 workgroups for an average demand of 306 outgoing wires per day? What is your line balance if peak demand is 450 wires per day? What is assembly-line efficiency for each line-balance solution?
CT = (7.5*60)/306=1.47 minutes per wire
CT = (7.5*60)/450=1 minutes per wire
Assembly-line efficiency = Et/(N*CT)
360 wires per day
Assembly-Line Efficiency = 7.05/(7*1.47) = 68.46%
450 wires per day
Assembly-Line Efficiency = 7.05/(9*1) = 78.3%
How many people are needed for the outgoing wire process using assembly-line-balancing methods versus the current staffing level of ll full-time-equivalent employees?
For the demand of 306 wires per day we need 7 employees (if grouped using assembly line balancing) not 11 as is indicated above.
For the demand of 450 wires per day we need 9 employees not 11.
By having less than 11 emloyees will not only bring assemly line balance but also will reduce labour costs.
Saved Labour Costs (7 emlpoyees) = 4*30,000*1.03 = $156,000
Saved Labour Costs (9 employees) = 2*30,000*1.03 = $78,000
Rework activities are 2,7 and 11.
How many staff members do you need for the outgoing wire process if you eliminate all rework?
360 wires per day without rework
450 wires per day without rework
If we will eliminate the activities that need rework, the number of employees for average demand will still be 7, however if the demand will be at the peack the number of employees (if all activities that demand rewark are eliminated) needed will decrease to 8 employees.
From the prevous scenarios it can be canluded that if we have an average demand, the peack demand or we reduce rewarks we need less workstations than 11
7 employees:
Advantages: Saving more many than if there are 8 or 9 employees
Disadvantages: The idle time is more than in the rest of the cases (especially higher if we remove the rewark activities). The risk of failure is also high, especially if we eliminate rewark => 8 employees are also risky (If we remove rewark with average demand we have 7, with peack demand we have 8 employees)
Having 9 workers is the most rational choise. With 9 employees we have less idle time and we also save in tems of labor costs compared to 11 employees.