0 20 40 60 80 100 120 140 160 180 200 123456789101112 Figure 4.7 : Line balance in a highly specialized line (different colors represent different tasks) Activity time [seconds] Worker
Same Person Figure 4.8. : Parallel work cells (only 3 work-cells are shown) Step 1Step 2Step 3 Step 1Step 2Step 3 Step 1Step 2Step 3 ComponentsFinished Xootrs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Final Assembler’s cost Including Tier 1 Costs Including Tier 2 Costs Rolled-up Costs over ~ 5 Tiers Purchased parts and assemblies Parts and material costs Figure 4.9.: Sources of Cost in the Supply Chain (Whitney 2004, based on DaimlerChrysler) Material costs Logistics costs Assembly and other Labor costs Quality Warranty Overhead Other
Figure 4.10.: Trade-off between labor productivity and capital investment Return on assets (sales per $ of equipment) Labor Productivity (Xooters per employee) LowHigh Low labor productivity High labor productivity Trade-off High capability frontier Improvement because of line-balancing Low capability frontier Largely manual process, Likely to be operated in low wage region Largely automated process likely to be operated in high wage region
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