A manufacturing facility produces two types of a product: Standard and Deluxe. T

Question

A manufacturing facility produces two types of a product: Standard and Deluxe. The process flow for both types of production is shown in the following chart. Both types are first processed through steps A1 and A2. The Standard then goes through steps A3 and A4 while the Deluxe is processed through steps A5, A6, and A7. Both types finish at A8. The numbers in parentheses indicate the minutes it takes for that activity to process a single unit. A3 A4 (15) Standard A1 A2 Standard or Deluxe A8 A6 (10) A5 A7 (12) Deluxe a) Which step is the bottleneck for the Standard products? Which step is the bottleneck for b) What is the capacity (measured as units per hour) of the facility to process the Standard c) If 60% of the products are Standard and 40% are Deluxe, what is the average capacity d) Suppose the actual throughput of the facility is 3.2 units per hour. Again, 60% of the the Deluxe products? products? What is the capacity to process the Deluxe products? (measured as units per hour) of the facility? products are Standard and 40% are Deluxe, what is the utilization of each step (A1-A8)?

Explanation / Answer

For standard product, it is A3 with unit time of 20 minutes

For deluxe product, it is A7 with unit time of 12 minutes

Therefore ,

Capacity of the facility to produce standard product ( per hour basis) = 60 minutes/ 20 minutes = 3 units per hour

Capacity of the facility to produce deluxe product ( per hour basis ) = 60 / 12 = 5 units per hour

= 60% of capacity of the facility to produce standard product + 40% of capacity of the facility to produce deluxe product

= 60% of 3 + 40% of 5

= 1.8 + 2

= 3.8 units per hour

AVERAGE CAPACITY OTHE FACILITY = 3.8 UNITS PER HOUR

Average capacity of the facility = 3.8 units per hour

Utilization of each step = 3.2/3.8 x 100 = 84.21%

AVERAGE CAPACITY OTHE FACILITY = 3.8 UNITS PER HOUR

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