(a)
Interpretation: The number of administration clerks that should be hiredisto be calculatedassuming target utilization for them of 90%.
Concept Introduction:
It is very necessary to maintain the capacity at desired levels to keep a demand supply match.
(b)
Interpretation: The current labor utilization of the coders is to be determined when the two coding specialists are currently on duty.
Concept Introduction:
The averagelaborutilizationiscalculated by dividing the totallaborcontent by the sum ofthe total idle timeand the laborcontent.
(c)
Interpretation: The total process capacity in units per hour for the five stage process is to be calculated.
Concept Introduction:
The process capacity and the capacity of the bottleneck are equivalent. The process capacity is useful to determine customers per hour or parts per day.
(d)
Interpretation: The position of any bottleneck exists, and recommendation needed to improve this process is to be determined.
Concept Introduction:
Abottleneckis regarded as a congestion point in a production system that arises when the workloads reach too rapidly for the production process to handle.
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