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A four-step process is used to make a product

Business

A four-step process is used to make a product. The first resource takes 8 minutes per unit, the second takes 7 minutes per unit, the third takes 2 minutes per unit, and the fourth takes 10 minutes per unit. 20% of all units have to be reworked. For that, they have to revisit the third and fourth resources. Each resource is staffed by one worker. Rework takes the same processing times as the first pass and always fixes the problem. What is the capacity of the process in units per minute?

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Answer:

Since 20% of the initially processed product have to go through third and fourth resources for rework , effective processing capacity per unit for resource 3 and resource 4 = 1.20 x Processing capacity per unit ( as given ) for resource 3 as well as 4

Therefore based on given data ,

Effective process capacity per unit at Resource 1 = 8 minutes

Effective processing capacity per unit at resource 2 = 7 minutes

Effective processing capacity per unit at resource 3 = 1.2 x 2 minutes = 2.4 minutes

Effective processing capacity per unit at resource 4 = 1.2 x 10 = 12 minutes

Based on above data, Resource 4 is the Bottleneck resource since it has maximum processing time . Since system capacity is decided by bottleneck resource, capacity of the system/process is 12 minutes per unit .

Capacity of the process in units per minute = 1/12 -= 0.0833 units / minute

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