ISCOM 305 Week 4 Individual Widget
Production Executive Summary
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Taylor Inc. manufactures widgets. There is a particular assembly line for Widget X. This
assembly line includes the assembly of various raw materials, subassemblies, and packing
of the finished widget. Currently, approximately 27% of the total labor time is utilized in
walking by assembly line personnel to obtain the needed parts required to accomplish their
assigned tasks. The average hourly cost, including all benefits, is $43 per hour. Seventeen
people are required on the assembly line. Lifting containers that weigh approximately 42
pounds is required in several of the respective tasks. The current output of finished widgets
is 208 per 8-hour shift. The company incurs an average of four worker’s compensation
claims per year in back injuries due to lifting. An average claim equals $109,000 and the
employee is out for an average of 280 hours. The injured worker must be replaced to
sustain production. By improving the physical layout, productivity may be improved and
worker’s comp claims reduced. Two layouts have been proposed.
Alternative One reduces wasted motion (walking) to 1% of total labor used on the assembly
line. Physical lifting is reduced to no more then 12 pounds. Six people will be required on
the assembly line. Productivity in finished goods per 8-hour shift will increase to 392. It is
anticipated that worker’s comp claims will be reduced to .3 per year; however, a capital
investment of $1.3 million is required in robotics and mobile storage carts. Useful life of the
equipment is 7 years.
Alternative Two reduces wasted motion to 7% of total labor time while physical lifting is
reduced to no more then 23 pounds. Nine people are required to staff the assembly line....