In: Operations Management
The process flow diagram for an office chair is shown below. There are three steps on a worker-paced line, and no inventory is stored between the steps. The processing times are:
Demand rate is 7 units/hour.
What is the resource utilization at each unit? (Assume that there is sufficient input for the process).
Resource Utilization = Flow Rate/ resource capacity
Raw material - Base (6min/ unit)- upholstery (10 min/unit) - assembly (8 min/unit) - finished units
10units/hr(Base) 6 units/ hr ( Upholestry) 7.5 units/hr(assembly)
Processing Time of Base = 6 minutes per unit
Total Quantity assembled in 1 hour = 10 units
Processing Time of Upholstery = 10 minutes per unit
Total Quantity assembled in 1 hour = 6 units
Processing Time of assembly = 8 minutes per unit
Total Quantity assembled in 1 hour = 7.5 units
As per bottleneck, only 6 units will be manufactured during one hour.
Total Time used of Base = 6*6 = 36 minutes
Total Unused time of Base = 60 - 36 = 24 minutes
Total Time used of Upholstery = 10*6 = 60 minutes
Total Unused time of Upholstery = 60 - 60 = 0 minutes
Total Time used of Assembly = 8*6 = 48 minutes
Total Unused time of Assembly = 60 - 48 = 12 minutes
Total Unused Time = 24+0+12 = 36 minutes
Resource Utilization = (Total Time - Unused Time) / Total Time
Resource Utilization = (3*60 - 36)/ (3*60)
Resource Utilization = (180-36)/180
Resource Utilization = 0.80
Resource Utilization = 80%