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Engineering, 16.10.2020 04:01 edtorres5

A work cell is currently operated 2000 hr/yr by a human worker who is paid an hourly rate of $23.00, which includes applicable overhead costs. One work unit is produced in a cycle time of 4.8 min. Management would like to increase output to meet increasing demand and a robot cell is being considered as a replacement for the present manual cell. The cycle time of the proposed cell would be reduced to 4.0 min. The installed cost of the robot plus supporting equipment is $120,000. Power and other utilities to operate the robot will be $0.30/hr, and annual maintenance costs are $2500. Determine: a. the number of parts produced annually by the manually operated cell.
b. cost per part produced.
c. how does the cost per part of the robot cell compare with your answer in part (b), given a 4-year service life, 10% rate of return, and no salvage value.

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