Manufactured in two steps-stamping and assembly

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Metal frames for kick scooters are manufactured in two steps: Stamping and assembly. Each frame is made up of three pieces: one unit of part A and two units of part B. The parts are fabricated by a single stamping machine that requires a set up time of 120 minutes switching between two part types. Once the machine is set up, the activity time for parts, regardless of type, is 20 seconds each piece. Currently, the stamping machine rotates its production between one batch of 120 part A’s and 240 part B’s. Completed parts move only when the entire batch is produced. At assembly, parts are assembled manually to form the finished products. The three parts and a number of small purchased components are required for each unit of final product. Each product requires 20 minutes of labor time to assemble. There are 8 workers in assembly. There is sufficient demand to sell every scooter the system can make. What is the bottle neck and what is the capacity of the system.

Reference no: EM131035405

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