A law firm handles two types of insurance policies. Policy 1 requires 4 hours of

Question

A law firm handles two types of insurance policies. Policy 1 requires 4 hours of Resource 1. 1 hours of Resource 2. and 1 hours of Resource 3. Policy 2 requires 5 hours of Resource 1. 3 hours of Resource 2 and 1 hours or Resource 3. There are 5 units or Resource 1, 3 units or Resource 2, and 3 units of Resource 3. Working hours per day is 8 hours Capacity waste factor tor resources 1 to 3 is 0.1. 0.3 and 0.2 respectively. Product mix includes 0.2 product 1 and the rest is product 2.

Q1: What is the effective daily capacity of the process?

Q2: Compute the cycle time.

Q3: Suppose utilization of the process is 0.8. Compute the daily throughput. Q4: On average how many flow units are with the resources (in the processors)

Explanation / Answer

The given data is as follows:

Therefore Total hurs available for each resource is calculated by using formula Available units*(1-waste)*hrs/day

Number of units that can be produced = Total available / required per unit

From above it is concluded that either we can have maximum of 6.4 of Policy1 or 5.6 of Policy2

Now in case of .2 of Policy1 and rest of Policy2 the workings are as follows

Therefore effective capacity is to have .2 Policy1 and 5.53 Policy2 daily.

Total Hours used are as follows

Resource1 Resource2 Resource3 Policy1 4 1 3 Policy2 5 3 1 Available 5 3 3 waste 0.1 0.3 0.2 Hrs/day 8 8 8

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