For each of the following variables, explain the differences (in general) as one moves from a workcenter to an assembly line environment.

a. Throughput time (time to convert raw material into the product).

b.Capital/labor intensity.

c.Bottlenecks.

An assembly line environment is one in which the parts of a particular product are made, i.e., each workstation produces only a part. The final product is made when the parts get assembled after moving from one workstation to another.These production lines include the automobile sector, transportation equipment, electronic appliances, etc.

a. Throughout time (time to convert raw material into the product): Throughout time(time to convert raw material into the product) decreases as one moves from a work center’s process to an assembly line environment. It is so because moving to an assembly line takes less time to convert raw material into product.

b. Capital/labor intensity: As assembly lines become more automated than work centers, the Capital/labor intensityrises. Depending on the extent of technology, the needed labor input reduces. However, the capital-to-labor ratio would rise as more funds are needed for automation.

c. Bottleneck:Bottleneckwould decrease since in the assembly line the time consumption is less, automation exists, so the assembling process of the finished product would take less time. As one work station in the assembly line specializes in one part only, there would be no delay in the production activity.