Which approach would result in more economical assembly

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A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $33 per hour each, could be assigned to individually assemble the test equipment. Each worker would do all the assembly steps, and it would take 2.6 hours to complete one unit. An alternate approach would be to set up teams of four less skilled workers (at $19 per hour each) and organize the assembly tasks so that each worker does part of the assembly. The four-man team would be able to assemble a unit in one hour. Which approach would result in more economical assembly?

Reference no: EM131807902

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