Determining utilization and worker efficiency


Assignment:

One million units of a certain product are to be manufactured annually on dedicated production machines that run 24 hr/day. 5 day/wk, 50 wk/yr.

(a) If the cycle time of a machine to produce one part is 1.0 min. how many of the dedicated machines will be required 10 keep up with demand? Assume that availability, utilization, and worker efficiency = 100%, and that no setup time will be lost.

(b) Solve part (a) except that availability = 0.90.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Operation Management: Determining utilization and worker efficiency
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