1 / 13

Chapter 4 Estimating and Reducing Labor Costs

Chapter 4 Estimating and Reducing Labor Costs. A Labor Intense Process ( Novacruz Case). Finished Xootrs. Components. Activity 3 8 minutes. Activity 2 11 minutes. Activity 1 13 minutes. Xootr Task Durations. Measures of Labor Productivity. Time to Process X Units Starting Empty.

carver
Télécharger la présentation

Chapter 4 Estimating and Reducing Labor Costs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 4Estimating and Reducing Labor Costs

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

  3. Xootr Task Durations

  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) 10 9 8 7 5 4 2 3 1 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 Cycle Time Before Line Balancing 900 800 12 700 10 11 20 9 600 19 8 500 18 Activity time [seconds] 7 26 400 17 6 25 5 300 16 15 24 4 23 200 22 14 2 3 100 13 21 1 0 Step 1 Step 2 Step 3 Cycle Time After Line Balancing 900 800 700 26 600 17 25 500 24 Activity time [seconds] 16 15 23 400 22 6 14 300 21 13 20 200 19 12 100 18 11 0 Step 1 Step 2 Step 3

  9. Productivity Measures 1/2 Bottleneck a4 a2 Activity Time a1 a3 1 2 3 4 =Idle Time Overall Performance Measures

  10. Productivity Measures 2/2 Bottleneck a4 a2 Activity Time a1 a3 1 2 3 4 Labor Productivity Measures =Idle Time • Labor Content=a1+a2+a3+a4 • If one worker per resource:Idle Time=(a4-a1) +(a4-a2) +(a4-a3) • Average labor utilization • Cost of direct labor

  11. Key-points to remember: Work Methods Design Exercise • 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

  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. • How long does it take to produce 100 units starting with an empty system? • What is the average labor content? • What is the average labor utilization? • What is the cost of direct labor?

  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: • What is the capacity of the assembly line? • What is the direct labor content for the processes on this line? • What is the utilization of the worker in station B? • How many minutes of idle time will the worker in station C have in one hour? • What time will it be when the assembly line has processed 193 watches on any given day?

More Related