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Determine the capacity for a one-step process
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- A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18. a. Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.) b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount.) c. If expected annual demand is 15,000 units, which alternative would yield the higher profit (or the lower loss)?Explain what is meant by bottleneck analysis in operations ?CAPACITY ANALYSIS WITH SIMULTANEOUS PROCESSES Dr. Cynthia Knott’s dentistry practice has been cleaning customers’ teeth for decades. The process for a basic dental cleaning is relatively straightforward: (1) the customer checks in (2 minutes); (2) a lab techni-cian takes and develops X-rays (2 and 4 minutes, respectively); (3) the dentist processes and examines the X-rays (5 minutes) while the hygienist cleans the teeth (24 minutes); (4) the dentist meets with the patientto poke at a few teeth, explain the X-ray results, and tell the patient to floss more often (8 minutes); and(5) the customer pays and books her next appointment (6 minutes). A flowchart of the customer visit isshown below. Dr. Knott wants to determine the bottleneck time and throughput time of this process.
- What are the techniques available to operations managers to deal with a bottleneck operation? Which of thesedoes not decrease throughput time?Should capacity be changed all at once, or through several (or more) small changes?Explain What would a "capacity in chunks" mean, and why is it a consideration in capacity planning?