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Matching supply with Demand (3rd Edition) - Question 10.2

(Process with Rework) Consider the following three-stage production process of glass ceramics, which is operated as a worker-

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Answer #1

a)

Work is released in process at 5 units per hour.

It will arrive at station 2 at the rate (5*80%) 4 units per hour

Capacity of Station 2 = 12 units per hour (5 minutes per unit)

Utilization = 4/12 = 0.33

b)

Since the processing time for Station 1 is the highest (capacity is lowest) hence station 1 will be the Bottleneck.

c)

Bottleneck is station 1.

Capacity of station 1 = 60/6 = 10 units per hour.

Since the capacity of bottleneck station is 10 units per hour hence process capacity will be equal to bottleneck capacitty.

Process Capacity = 10 units per hour.

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