Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 4 Estimating and Reducing Labor Costs. A Labor Intense Process (Novacruz Case) Components Finished Xootrs Activity 1 13 minutes Activity 2 11.

Similar presentations


Presentation on theme: "Chapter 4 Estimating and Reducing Labor Costs. A Labor Intense Process (Novacruz Case) Components Finished Xootrs Activity 1 13 minutes Activity 2 11."— Presentation transcript:

1 Chapter 4 Estimating and Reducing Labor Costs

2 A Labor Intense Process (Novacruz Case) Components Finished Xootrs Activity 1 13 minutes Activity 2 11 minutes Activity 3 8 minutes

3 Xootr Task Durations Worker 1Worker 2Worker 3 Prepare cable 30Assemble brake lever 110Inspect & wipe off 95 Move cable 25Trim and cap cable 59Apply decal 20 Assemble washer 100Place first rib 33Insert in bag 43 Apply fork 66Insert axles, cleats 96Assemble carton 114 Assemble socket head 114Insert rear wheel 135Insert Xootr & manual 94 Steer pin nut 49Place 2 nd rib 84Seal carton 84 Brake shoe, spring 66Apply grip tape 56 Insert front wheel 100Insert deck fasteners 75 Insert axle bolt 30 Tighten axle bolt 43 Tighten brake pivot 51 Assemble handle cap seconds648 seconds450 seconds

4 Measures of Labor Productivity

5 Time to Process X Units Starting Empty What dictates flow from one step to the next?

6 Lifecycle Demand Trajectory for Xooters

7 Scaling Up to Higher Volumes/Increasing Efficiency Line balancing – Takt time Line replicating Task specialization Adding workers

8 Balancing an Assembly Line (Fig 4.5) Step 1Step 2Step 3 Step 1Step 2Step 3 Cycle Time Before Line Balancing Cycle Time After Line Balancing Activity time [seconds] Activity time [seconds] 1: Prepare cable 2: Move cable 3: Assemble washer 4: Apply fork, threading cable end 5: Assemble Socket head screws 6: Steer pin nut 7: Brake shoe, spring, pivot bolt 8: Insert front wheel 9: Insert axle bolt 10: Tighten axle bolt 11: Tighten brake pivot bolt 12: Assemble handle-cap 13: Assemble brake lever + cable 14: Trim and cap cable 15: Place first rib 16: Insert axles and cleats 17: Insert rear wheel 18: Place second rib and deck 19: Apply grip tape 20: Insert deck fasteners 21: Inspect and wipe-off 22: Apply decal and sticker 23: Insert in bag 24: Assemble carton 25: Insert Xootr and manual 26: Seal carton

9 a1a1 Activity Time a2a2 a3a3 a4a Bottleneck =Idle Time Overall Performance Measures Productivity Measures 1/2

10 a1a1 Activity Time a2a2 a3a3 a4a Bottleneck =Idle Time Labor Content=a 1 +a 2 +a 3 +a 4 If one worker per resource: Idle Time=(a 4 -a 1 ) +(a 4 -a 2 ) +(a 4 -a 3 ) Average labor utilization Cost of direct labor Labor Productivity Measures Productivity Measures 2/2

11 Where process times & cost estimates quoted by production managers come from How to make labor related decisions pricing hiring Impact of process design on productivity Line balance Idle time Direct labor content Cost of direct labor Calculations: Determining resource requirements to support a volume target. Estimating direct labor content. Calculating direct manufacturing cost Adjusting for idle time The Importance of Process DESIGN Mechanics of a worker-paced line Mechanics of a work cell Key-points to remember: Work Methods Design Exercise

12 4.1 Consider a process consisting of three resources in a worker- paced line and a wage rate of $10 per hour. Assume there is unlimited demand for the product. a.How long does it take to produce 100 units starting with an empty system? b.What is the average labor content? c.What is the average labor utilization? d.What is the cost of direct labor? ResourceActivity Time# Workers

13 4.5 Geneva Watch makes watches on a conveyor belt with six stations; one worker stands at each station and performs the following tasks: a. What is the capacity of the assembly line? b. What is the direct labor content for the processes on this line? c. What is the utilization of the worker in station B? d. How many minutes of idle time will the worker in station C have in one hour? e. What time will it be when the assembly line has processed 193 watches on any given day? A: Preparation 1Heat stake lens Inspect bezel Clean switch Install Set switch 14 seconds / 68 seconds total B: Preparation 2Check switch Clean bezel Install module 23 seconds 12 25/ 60 seconds total C: Battery installationInstall battery clip Heat stake clip Install 2 batteries Check switch 20 seconds / 70 seconds total D: Band installationInstall band Inspect band 45 seconds 13/ 58 seconds total E Packaging preparationCosmetic inspection Final test 20 seconds 55/ 75 seconds total F: Watch packagingPlace in box Place cover on box Insert owners manual 20 seconds 14 30/ 64 seconds total


Download ppt "Chapter 4 Estimating and Reducing Labor Costs. A Labor Intense Process (Novacruz Case) Components Finished Xootrs Activity 1 13 minutes Activity 2 11."

Similar presentations


Ads by Google