Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 5, Problem 2DQ
Summary Introduction

Interpretation: Whether capacity cushion represents waste is to be discussed.

Concept Introduction:

The process of determining the capacity of the production facility needed by an organization to meet the current and future demands of its products is known as capacity planning.

Due to some of unavoidable circumstances like accidents, weather conditions, uncertainty, etc., there may be chances that the changing demands of the products might not be met.

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A Printed Circuit Board (PCB) machine installs integrated circuits onto a board. Before starting to produce a board, the PCB machine requires a 16-minute setup. Once in production, the PCB machine requires only 0.19 minute per board. a. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the capacity of the PCB machine (in boards per min)? b. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the utilization of the PCB machine? c. Say the PCB machine produces 400 boards s between setups and demand is 2 boards per minute. Given the operating process, what is the avergae inventory of boards anf the PCB machine? d. Demand for boards occurs at the rate of 2 boards per minute. What is the smallest batch size such that the PCB machine does not constrain the flow rate through the process?
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