In this case, the utilization of effective capacity for each operation represent
ID: 464647 • Letter: I
Question
In this case, the utilization of effective capacity for each operation represents the percent of maximum capacity each operation is actually expected to maintain for next month. For example, for next month, Operation B's effective capacity is expected to be 77 percent of its maximum capacity, 455 units (= 100 + 80 + 150 + 125). Thus, Operation B is expected to product 350.35 units per hour (= 455 units * 77 percent) next month. Operation's D effective capacity can be calculated in the same way: 308.125 units per hour (= 425 units * 72.5 percent). For the company's overall production process next month:
Calculate maximum capacity. For this question, you need to take a look at the maximum capacity of each operation so that you can find the bottleneck in this process.
Calculate effective capacity. For this question, you need to take a look at the effective capacity of each operation so that you can find the bottleneck in this process.
Operation A Machine A1 B1 B2 B3 B4 C1 D1 D2 Maximum capacity (units/hour) 400 100 80 150 125 350 190 235 Utilization of effective capacity for each operation 80% 77% 95% 72.5%Explanation / Answer
Calculate maximum capacity. For this question, you need to take a look at the maximum capacity of each operation so that you can find the bottleneck in this process.
Operation A's maximum capacity = 400 units
Operation B's maximum capacity = 100 + 80 + 150 + 125 = 455 units
Operation C's maximum capacity = 350 units
Operation D's maximum capacity = 190 + 235 = 425 units
Total Maximum capacity = Maximum capacity of (A +B+C+D) = 400+455+350+425 = 1,630 units
The bottleneck in this process is Operation C with lowest maximum capacity of 350 Units.
Calculate effective capacity. For this question, you need to take a look at the effective capacity of each operation so that you can find the bottleneck in this process.
Operation A's effective capacity is 80 percent of its maximum capacity = 400 units * 80% = 320 units
Operation B's effective capacity is 77 percent of its maximum capacity = 455 units * 77% = 350.35 units
Operation C's effective capacity is 95 percent of its maximum capacity = 350 units * 95% = 332.5 units
Operation D's effective capacity is 72.5 percent of its maximum capacity = 450 units * 72.5% = 326.25 units
Total effective capacity = effective capacity of (A +B+C+D) = 320 + 350.35 +332.5 + 326.25 = 1,329.1 units
The bottleneck in this process is Operation A with lowest effective capacity of 320 Units.
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