A small, privately owned Asian company is producing a private-label soft drink c

Question

A small, privately owned Asian company is producing a private-label soft drink called Yoggo. A bottling line puts the soft drinks into plastic bottles and then packages the bottles into boxes. The bottling line is comprised of the following four steps: (1) the bottling machine takes 1 second to fill a bottle, (2) the lid machine takes 3 seconds to cover the bottle with a lid, (3) a labeling machine takes 3 seconds per bottle, and (4) the packaging machine takes 4 seconds to place a bottle into a box. Problem data are summarized in the following table.

Process Step     Number of Machines     Seconds per Bottle

Bottling                        1                                  1

Apply a lid                    2                                  3

Labeling                       4                                  3

Packaging                    3                                  4

A) what is the capacity (bottles/hour) at the resource "Apply a lid"?

B) What is the bottleneck in the process?

C)Assuming unlimited demand, what would be the flow rate?

D)Assuming unlimited demand, what would be the utilization at resource “Apply a lid”?

E)Assume the process started empty and that this is a machine-paced process. How long would it take to produce 500 bottles?

F)If each machine is run by one worker, and each worker is paid $10/hour, then what is the cost of direct labor?

G)What is the labor content?

H)Assume that the demand rate is 5000 units/hour, what is the target manpower?

Explanation / Answer

A) Apply a lid: Number of machines are 2 and it takes 3 seconds per bottle.

Capacity per hour = Total time/Time per bottle*Number of machines = 60*60/3*2 = 2400 bottles per hour

B) Capacity of each step:

Bottling = 60*60/1*1 = 3600 bottles per hour

Labeling = 60*60/3*4 = 4800 bottles per hour

Packaging = 60*60/4*3 = 2700 bottles per hour

Apply a lid = 2400 bottles per hour

So, bottleneck process is "Apply a lid"

C) Flow rate will be basis bottleneck process = 2400 bottles per hour or 40 bottles per minute or 0.67 bottles per sec

D) Utilization of Apply a lid is 100% as it is the bottleneck process

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