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Dear John,
If Yam Co has decided to purchase a brand new pressing machine thus increasing the available hours on the pressing process to 450,000 hrs (AKA bottleneck shifting- It would result in the inevitable creation of another bottleneck resource.)
What is the new bottleneck for Yam Co?
The answer is the Rolling process. But if this is the case, then the data should have stated that it should be processing time (in hours) per unit, not the processing time (in hours) per meter [being indicated by the question] as it might confuse readers to a certain extent.
May I ask how do I identify the bottleneck resource if the amount of sheet metal utilized by each product is not stipulated clearly? I would gladly appreciate you in helping me to deconstruct this point as to why it is the case. Thanks.
Regards,
ShaneIf this question has been modified, it is years old anyway……
Here’s the video that John did on the original question.
https://www.youtube.com/watch?v=8Y3aIvgXSHUTo identify the new bottleneck resource after increasing the available hours for the pressing process to 450,000 hours, you need to analyze the processing times for each product across all processes (pressing, stretching, and rolling).
With the increased capacity in pressing, you would calculate the production capacity for stretching and rolling to determine which process now has the lowest capacity.Regarding the concern about the lack of clarity in the amount of sheet metal utilised by each product, it is essential to understand that the bottleneck is determined by the process that limits overall production capacity.
Even without specific quantities of sheet metal, the processing times provide sufficient information to identify the bottleneck by comparing the time taken for each process across all products.
Understood. Thanks a lot for helping me to see this through from a different perspective. I’m just wondering if each unit of product A uses 1 meter of sheet metal as the calculation used to determine the pressing time needed for Product A to satisfy maximum demand for 300 000 units is (0.5 * 300 000)= 150 000 pressing hours for Product A whereby this is derived from the multiplication of the time taken per unit, which is 0.5 hrs per meter per unit by the maximum demand of 300000 units for product A.
(As this is an adapted question, I have difficulty with this part here. I am able to calculate the TPAR from the earlier part of this question.)
Thanks.
I hope you don’t mind me saying it is a very old question which you have said has been amended
By who? BPP?
Is it actually exam standard?
You should be looking at newer questions……
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