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Assignment 2

The document is an assignment for IIMT3635 due on October 6, 2024, consisting of three questions related to resource management and labor costs in different service and production scenarios. Question 1 involves calculating labor costs and utilization for a process with three resources, Question 2 focuses on a hair salon's service process and labor costs, and Question 3 pertains to a gelato production facility's capacity and inventory management. Each question requires detailed calculations and considerations of demand rates and processing times.

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Karen W
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3 views

Assignment 2

The document is an assignment for IIMT3635 due on October 6, 2024, consisting of three questions related to resource management and labor costs in different service and production scenarios. Question 1 involves calculating labor costs and utilization for a process with three resources, Question 2 focuses on a hair salon's service process and labor costs, and Question 3 pertains to a gelato production facility's capacity and inventory management. Each question requires detailed calculations and considerations of demand rates and processing times.

Uploaded by

Karen W
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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IIMT3635 Assignment 2

Due on Oct 6, 2024

(Show work for credit; final answers alone will not be credited)

Question 1

Consider a process consisting of three resources. Assume there exists unlimited demand for the
product.

a) Resource 1 has a processing time of 6 minutes per unit.


b) Resource 2 has a processing time of 3 minutes per unit.
c) Resource 3 has a processing time of 5 minutes per unit.

All three resources are staffed by one worker and each worker gets paid $12 per hour.

a) What is the cost of direct labour?


b) What is the labour content?
c) How much idle time does the worker at resource 3 have per unit?
d) What is the average labour utilization?
e) Assume the demand rate is 20 units per hour. What is the takt time?
f) Assume the demand rate is 20 units per hour. What is the target manpower?

Question 2

Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services
at a reasonable price, so it always has unlimited demand. The service process includes five activities
that are conducted in the sequence described next (the time required for each activity is shown in
parentheses):

Activity 1: Welcome a guest and offer homemade herb tea (10 minutes).

Activity 2: Wash and condition hair (10 minutes).

Activity 3: Neck, shoulder, and back stress-release massage (10 minutes).

Activity 4: Design the hairstyle and do the hair (25 minutes).

Activity 5: Check out the guest (5 minutes).

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to
servers is the following: S1 does activity 1, S2 does activities 2 and 3, and S3 does activities 4 and 5.

a) What is the labour content?


b) What is the average labour utilization?
c) At a wage rate of $20 per hour, what is the cost of direct labour per customer?
d) Mr. K considers hiring a new employee to help any one (and only one) of the servers without
changing the tasks performed by each server. How would this change his cost of direct
labour?
e) Mr. K also contemplates redesigning the assignment of tasks to servers. For this, Mr. K is
evaluating the reassignment of activity 5 from S3 to S1. How would this change his cost of
direct labor?

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Question 3

Bruno Fruscalzo decided to set up a small production facility in Sydney to sell to the local restaurants
who want to offer gelato on their dessert menu. To start simple, he would offer only three flavors of
gelato: fragola (strawberry), chocolato (chocolate), and bacio (chocolate with hazelnut). After a short
time, he determined his demand and setup times, listed in Table.

Fragola Chocolato Bacio


Demand (kg/hour) 10 15 5
Setup time (hours) 3/4 1/2 1/6

Bruno first produces a batch of fragola, then a batch of chocolato, then a batch of bacio, and then he
repeats that sequence. For example, after producing bacio and before producing fragola, he needs 45
minutes to set up the ice cream machine, but he needs only 10 minutes to switch from chocolato to
bacio. When running, his ice cream machine produces at the rate of 50 kgs per hour no matter which
flavor it is producing (and, of course, it can produce only one flavor at a time).

a) Suppose they operate with a production cycle of 150 kgs (50 kg of fragola, 75 kgs of
chocolato, and 25 kgs of bacio). What is the capacity of the gelato-making process (in kgs per
hr)?
b) Suppose they operate with a production cycle of 150 kgs (50 kg of fragola, 75 kgs of
chocolato, and 25 kgs of bacio). What is the utilization of the gelato-making process?
c) Suppose they operate with a production cycle of 150 kgs (50 kg of fragola, 75 kgs of
chocolato, and 25 kgs of bacio). What is the average inventory of chocolato?
d) Suppose Bruno wants to minimize the amount of each flavor produced at one time while still
satisfying the demand for each of the flavors. (He can choose a different quantity for each
flavor.) If we define a batch to be the quantity produced in a single run of each flavor, how
many kgs should he produce in each batch?
e) Given your answer to part (d), how many kgs of fragola should he make with each batch?

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