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Throughput Accounting (Kaplan Kit Q31)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput Accounting (Kaplan Kit Q31)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • October 19, 2020 at 10:13 am #590356
    bivasnp
    Participant
    • Topics: 3
    • Replies: 0
    • ☆

    A manufacturing company uses three processes to make its two products, X and Y. The time available on the three processes is reduced because of the need for preventative maintenance and rest breaks.
    The table below details the process times per product and daily time available:

    For Process 1: 22 hrs available. 1.00 hr required to make product X. 0.75 hr required to make product Y
    For Process 2: 22 hrs available. 0.75hr required to make product X. 1.00 hr required to make product Y
    For Process 3: 18 hrs available. 1.00 hr required to make product X. 0.50 hr required to make product Y

    Daily demand for product X and product Y is 10 units and 16 units respectively.

    Which of the following will improve throughput?
    A Increasing the efficiency of the maintenance routine for Process 2
    B Increasing the demand for both products
    C Reducing the time taken for rest breaks on Process 3
    D Reducing the time product X requires for Process 1

    Confused as to why the answer is A here.

    October 19, 2020 at 6:08 pm #590574
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54719
    • ☆☆☆☆☆

    For Processes 1 and 3 they have enough time to make 10 units of X and 16 units of Y in each of the processes.

    It is only in Process 2 that they do not have enough time (they need 23.5 hours but there are only 22 hours available).

    Therefore they need more time available in Process 2, and because the time is reduced because of the need for maintenance and rest breaks, if the make the maintenance more efficient then the maintenance will need less time and so there will be more process time available in process 2.

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