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Hello, Sir.
Can you please explain the following:
Should we always take into account wastage and idle time when calculating Return per factory hour and Cost per factory hr? What if we don’t take it into consideration -will it be wrong and why?Usually we should, but it really depends on the wording of the question.
Sir, The wording is standard- calculate TPAR.That info about wastage and idle time is not written for no use and we take it into account, dont we?
Again it depends on what the rest of the question says!!!
I cannot possibly give you an answer without seeing the whole question.
Does the same book not provide you with an explanation?!Sir, the wording of the question is the same as for other standard problems on throughput:Calculate the TPAR for product.
If it is described that machine is utilized 90%, for total Labour time one hr is spent on lunch -this is not written just for no use and we should take it into account, yes?Again, I cannot possibly help without seeing the whole question.
If it is a past exam question then say which one, otherwise I can’t do anything.The last message is a duplicate. It arrived late because it’s a copy of the first one.
Sir, this is Solar Systems Co (December 2013 exam).
The kit gives explanation, but I’m trying to understand this TPAR apart from any problems because as you said, its important to understand the logic or rules. Even if not this problem, what if we calculate without taking into account the wastage and idle time.The part of the question you are asking about is not a specific throughput problem.
It is simply that in idea to calculate the cost per factory hour we need to know how many hours the bottleneck resource is working.
The question says that the bottleneck resource is machine M, and it says that it is working 90% of the 12 hours a day, that there are 5 days in a week, and that there are 50 weeks in a year.
So the total time it is working is 12 x 90% x 5 x 50 = 2,700 hours.
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