Question

In: Accounting

In a manufacturing company at present, the pattern shop and the maintenance department are located in...

In a manufacturing company at present, the pattern shop and the maintenance department are located in the same room. One large counter is used by both maintenance personnel to get tools and parts and by sand molders that need various patterns for the molding operation. Peter and Bob, who work behind the counter, are able to service a total of 10 people per hour (or about 5 per hour each). On the average, 4 people from casting/maintenance and 3 people from the molding/pattern department arrive at the counter per hour. People from the molding department and from casting dept arrive randomly, and to be served they form a single line. Pete and Bob have always had a policy of first come, first served. This is a poisson arrival pattern exponential service time model. Because of the location of the pattern shop and casting department, it takes about 6 minutes for a person from the casting/maintenance department to walk to the counter, and it takes about 2 minute for a person to walk from the molding. Separating the maintenance shop from the pattern shop had a number of advantages. It would take people from their department only 2 minutes now to get to the department counter. Using time and motion studies, George was also able to determine that improving the layout of the maintenance department would allow Bob to serve 6 people from the maintenance department per hour, and improving the layout of the pattern department would allow Pete to serve 7 people from the molding shop per hour. This would act as a single server system for both the departments separately. In the present system how much minutes are spent in casting ? Give only numeric answer 7.5 points

QUESTION1 In the present system how much minutes are spent in casting ? Give only numeric answer

QUESTION 2 In the present system how many minutes are spent in molding ? Give only numeric answer 7.5 points

QUESTION 3 How much time in minutes would the new layout save in total for both the departments? Give only numeric answer 7.5 points

QUESTION 4 If maintenance personnel were paid $9.50 per hour and molding personnel were paid $11.75 per hour, how much could be saved per hour with the new factory layout? Give only numeric answer

Solutions

Expert Solution

Ans 1. Total minutes spent in casting under present system for 4 people = 6 minutes * 2 ways * 4 people

= 48 minutes

Ans 2. Total minutes spent in molding under present system for 3 people = 2 minutes * 2 ways * 3 people

= 12 minutes

Ans 3. Total minutes spent in casting under new system for 6 people = 2 minutes * 2 ways * 6 people

= 24 minutes

Total minutes spent in molding under new system for 7 people = 2 minutes * 2 ways * 7 people

= 28 minutes

Saving for casting department if 6 people were served= time under old system - time under new system  

= (48 minutes/4 people)* 6 people - 24 minutes

= 48 minutes

Saving for molding department if 7 people were served= time under old system - time under new system  

= (12 minutes/3 people)* 7 people - 28 minutes

= 0 minutes

Total saving of both departments = 48 minutes + 0 minutes

= 48 minutes

Ans 4. Only casting department would save.

Saving per hour of casting department with new layout = $ 9.50 per hour


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