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What is the current maximum output of the process?

Category: Accounting & Finance Paper Type: Online Exam | Quiz | Test Reference: APA Words: 250

                                                                          i.      The current max output for a typical 8 hour work day is 48 sandwiches

                                                                        ii.      60 min * 8 hours = 480

                                                                      iii.      10 min/ order

                                                                      iv.      480/10 = 48 sandwiches

b.                  If we add another person, where would we add him or her? What is the benefit?

                                                                          i.      If another person has to be added, then it should be at the bottleneck so that time can be reduced for the toppings, which are going to be used for the sandwich. Your bottleneck and your line both can be fast, so when time is actually reduced, it would mean that more orders are processed.

c.                   Is there a benefit if we can shift 1 minute from Bun and Meat to order taking? Assume we do not make change in part b above.

                                                                          i.      The answer is no, because your bottleneck is not going to change. Regardless of the time taken by the stations before, your product is going to be held up at the station of condiments. (But it won’t happen, if they will take more than 4 minutes)

d.                  Is there a benefit if we shift 1 minute of work from Condiments to Bagging? Assume we do not make the changes in parts b and c above.

                                                                          i.      The answer is yes, because by doing so, the production line is being made equal, so orders are going to be processed in given time.

 

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