QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:
For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?
A) 81 percent
B) 90 percent
C) 95 percent
D) 85 percent
E) 100 percent

Question

QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product: 
For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?
A) 81 percent 
B) 90 percent 
C) 95 percent 
D) 85 percent 
E) 100 percent

Quizplus · Accepted Answer

To find the efficiency of the production line, we need to calculate the total time required to produce a unit and divide it by the cycle time (which is the maximum time each workstation can take to complete its task). 
For the production line with the least number of workstations, we can use the longest task time as the cycle time. In this case, the cycle time is 0.62 minutes (the time for task D). 
The total time required to produce a unit is the sum of the times for all tasks, which is 2.55 minutes. 
Therefore, the efficiency of the production line is (10 hours x 60 minutes/hour) / (900 units/day x 2.55 minutes/unit) = 95%. 
So the best choice is C.

QRS Corp Is Designing a Product Layout for a New Product