Wham-O makes 3 plastic toys; hula-hoops (product H), strawshooters (product S),

Question

Wham-O makes 3 plastic toys; hula-hoops (product H), strawshooters (product S), and wingdingers (product W). Wham-O has 4 resource types that are used in production - the process times required to make each toy at each resource type (and the number of processors of each type) are shown in the table below. Each resource is operated 10 hours each day.

As such, for example, in one hour, Extrusion can produce either 40 hula-hoops (i.e., one every 3 minutes, so 20 per hour, for each of the two processors), 30 units strawshooters, or 60 wingdingers. If demand for hula-hoops and strawshooters is 0 units per day; and for wingdingers is 400 units per day, then which Resource is the Bottleneck?

1. Extrusion, Forming, and Packaging have the same output per hour, so they are all bottlenecks

2. Packaging

3. Extrusion

4. Forming

Explanation / Answer

Answer 2. Packaging is the bottleneck since it has higher cycle time than other three processes.

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