Question

A production process consists of five steps. The maximum speed of each step is as follow: Step 12 units per 1 hour Step 8 uni
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Answer #1
Correct option is: B) 50% to 67%
Workings:
Step 1 = 12 units per hour
Step 2 = 8 units per hour
Step 3 = 9 units per hour
Step 4 = 6 units per hour
Step 5 = 7 units per hour
Bottle neck process = Step 4 with least units produced per hour
6 units per hour
Revised data:
Step 1 = 12 units per hour
Step 2 = 8 units per hour
Step 3 = 9 units per hour
Step 4 = 9 units per hour
Step 5 = 7 units per hour
Revised Bottle neck process = Step 2 with least units produced per hour
8 units per hour
Percentage increase in effective capacity of process 1 = (8/12) X 100
= 67%
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