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Could you help out with this?
from Bpp,On how to improve the TPAR.
Elevating the bottleneck, so that there are more hours available of bottleneck available. then states further that, through per unit of bottleneck would be unaffected and operating costs are all fixed costs.
why will the throughput per unit be unaffected? Can you explain with an example, please? Thank you!The throughput per hour is not affected because simply having more hours does not mean that the time taken for each unit will be any different – just that you are able to make more units.
The factory cost per hour will be lower, because you will be dividing the factory costs by more hours.If the factory cost per hour is lower, then the TPAR will end up being higher.
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