Question

Currently, a production process with multiple stages and multiple machines at each stage is producing larger orders in single batches. Each stage is facing some setup time and some pure processing time. If they decide to split up the larger orders in several smaller batches (i.e., no more batches than machines at the stage with the lowest number of machines), then what would be the most likely result, keeping everything else equal? For purposes of this question assume utilization remains well below one after splitting the job. Group of answer choices

a. The throughput time will decrease, and the utilization will increase. b The throughput time will increase, and the utilization will decrease. c The throughput time and the utilization will increase. dThe throughput time and the utilization will decrease.

Answer 1

a. The throughput time will decrease, and the utilization will increase

Since the batches will be small and as per the count of machines, amount of time required for a product to pass through a manufacturing process will reduce and hence reduced queue time will increase the utilization.This will ultimately help to improve capacity utilization thereby eliminating lost time.