Answered: A. What is capacity?

Name: A. What is capacity?B. Why is process capacity a limiting factor in al
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Description: A. What is capacity?B. Why is process capacity a limiting factor in all business processes and systems? Which one isbetter: too much capacity or too little capacity? What would be the conclusi

Business

Operations Management

A. What is capacity?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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2-The process of making hotdogs involves six activities: “grind”, “mix”, “stuff”, “cook”, “peel”, and “inspect”. If the capacity of activity “cook” determines the process capacity, which of the following statements are true? a- Activity “cook” is a bottleneck activity. b- The activity time of all the other five activities is shorter than activity "cook". c- Cycle time of the process of making hotdogs is equal=1/capacity of activity “cook”. d- Increasing the capacity of activity “grind” can increase the capacity of the process of making hotdogs. All statements are correct Only statement 'b' is correct Only statements 'a' and 'b' are correct Only statements 'a', 'b' and 'c' are correct Only statement 'a' is correct Only statement 'd' is correct
In a job shop, effective capacity is only 88 percent of design capacity, and actual output is 69 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity?a. The Design Capacity needed to achieve the required actual job outputs =( ) (round to whole number)b. The Effective Capacity needed to achieve the required actual job outputs =( ) (round to whole number)
Explanation of how the capacity analysis reacts to several processes running in simultaneously.
XYZ makes two types of products using 4 machines for 8 hours each day. Product A visits machines 1, 2 and 4. Product B visits machines 1 and 3. The capacity is 0.6 unit per minute at machine 1. 0.12 unit per minute at machine 2. 0.2 unit per minute at machine 3, and 0.5 unit per minute at machine 4. The demand per dav is 40 units for product A and 160 units per day for product B. Determine the implied utilization (IU) of all resources. What is the bottleneck ? Why ?. Show all formulas used, calculations and results.
To meet holiday demand, Penny’s Pie Shop requires a pro-duction line that is capable of producing 50 pecan pies perweek, while operating only 40 hours per week. There areonly four steps required to produce a single pecan pie withrespective processing times of 5 minutes, 5 minutes, 45 min-utes, and 15 minutes.a. What should be the line’s cycle time?b. What is the smallest number of workstations Penny couldhope for in designing the line considering this cycletime?c. Suppose that Penny finds a solution that requires onlyfour stations. What would be the efficiency of this line?
A.J.’s Wildlife Emporium manufactures two unique birdfeed-ers (Deluxe and Super Duper) that are manufactured andassembled in up to three different workstations (X, Y, Z) us-ing a small batch process. Each of the products is producedaccording to the flowchart in Figure 5.14. Additionally, theflowchart indicates each product’s price, weekly demand,and processing times per unit. Batch setup times are neg-ligible. A.J. can make and sell up to the limit of its weeklydemand and there are no penalties for not being able to meetall of the demand. Each workstation is staffed by a workerwho is dedicated to work on that workstation alone and ispaid $16 per hour. The plant operates 40 hours per week,with no overtime. Overhead costs are $2,000 per week. Basedon the information provided, as well as the information con-tained in the flowchart, answer the following questions.a. Using the traditional method, which bases decisionssolely on a product’s contribution to profits and over-head, what is the…
A.J.’s Wildlife Emporium manufactures two unique birdfeed-ers (Deluxe and Super Duper) that are manufactured andassembled in up to three different workstations (X, Y, Z) us-ing a small batch process. Each of the products is producedaccording to the flowchart in Figure 5.14. Additionally, theflowchart indicates each product’s price, weekly demand,and processing times per unit. Batch setup times are neg-ligible. A.J. can make and sell up to the limit of its weeklydemand and there are no penalties for not being able to meetall of the demand. Each workstation is staffed by a workerwho is dedicated to work on that workstation alone and ispaid $16 per hour. The plant operates 40 hours per week,with no overtime. Overhead costs are $2,000 per week. Basedon the information provided, as well as the information con-tained in the flowchart, answer the following questions. a. Using the traditional method, which bases decisionssolely on a product’s contribution to profits and over-head, what is the…
A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…
A copy center in an office building prepares bound reports for two clients. The center makes multiple copies (thelot size) of each report. The processing time to run, collate, and bind each copy depends on, among other fac-tors, the number of pages. The center operates 250 days per year, with one 8-hour shift. Management believesthat a capacity cushion of 15 percent (beyond the allowance built into time standards) is best. It currently hasthree copy machines. Based on the following table of information, determine how many machines are neededat the copy center Item Client X Client YAnnual demand forecast (copies) 2,000 6,000Standard processing time (hour/copy) 0.5 0.7Average lot size (copies per report) 20 30Standard setup time (hours) 0.25 0.40
Up, Up, and Away is a producer of kites and wind socks.Relevant data on a bottleneck operation in the shop for theupcoming fiscal year are given in the following table:Item Kites Wind SocksDemand forecast 30,000 units/year 12,000 units/yearLot size 20 units 70 unitsStandard processing time 0.3 hour/unit 1.0 hour/unitStandard setup time 3.0 hours/lot 4.0 hours/lotThe shop works two shifts per day, 8 hours per shift, 200 daysper year. Currently, the company operates four machines,and desires a 25 percent capacity cushion. How many ma-chines should be purchased to meet the upcoming year’s de-mand without resorting to any short-term capacity solutions?
How does capacity analysis behave when a large number of processes are operating concurrently?
Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two Identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. a. which station is the bottleneck station?Explain with a diagram. b. What is the capacity of the production line ? c. Compute the throughput time.