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Companies usually estimate work based on man-months. If the work must be estimated in man-weeks, the man-month is then converted to man-weeks. The problem is in determining how many man-hours per month are actually available for direct labor work.

Your company has received a request for proposal (RFP) from one of your customers, and management has decided to submit a bid. Only one department in your company will be required to perform the work, and the department manager estimates that 3,000 hours of direct labor will be required.

Your first step is to calculate the number of hours available in a typical man-month. The Human Resources Department provides you with the following yearly history for the average employee in the company:

- Vacation: 3 weeks
- Sick days: 4 days
- Paid holidays: 10 days
- Jury duty: 1 day

a. How many direct labor hours are available per month per person?

Answer :

Final answer:

The direct labor hours available per month per person, considering the given yearly non-working days, would be approximately 153.36 hours, based on an average working day of 8 hours.

Explanation:

To calculate the direct labor hours available per month per person, we need to first calculate the total non-working days in a year.

  1. Vacation: 3 weeks is equivalent to 15 working days (considering a 5-day working week).
  2. Sick days: 4 days
  3. Paid holidays: 10 days
  4. Jury duty: 1 day

In total, this amounts to 30 non-working days per year. Assuming a normal year has 260 working days (52 weeks * 5 days a week), after subtracting the non-working days, we have 230 actual working days. Assuming that the average worker works 8 hours per day (as per Bureau of Labor Statistics data), the number of direct labor hours available per month, per person, would be 19.17 days * 8 hours = 153.36 hours.

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