Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bottleneck
- This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
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- April 10, 2021 at 5:47 pm #616691
Please help with understanding how the bottleneck was identified.
Process Wash Fill Cap Label
time per dozen (mins) 6 3 1.5 2
machine hrs available 1200 700 250 450Product data
SP p.u 0.60
Direct Material p.u 0.18
Direct Labour p.u 0.02
Factory Fixed Cost $4120which process is the bottleneck?
April 11, 2021 at 8:43 am #616712The maximum number that can be dealt with in the ‘wash’ process is 1200 / (6/60) = 12,000 dozen.
Similarly, the maximum in the ‘fill’ process is 700 / (3/60) = 14,000 dozen.
In the ‘cap’ process is 250 / (1.5/60) = 10,000 dozen,
and in the ‘label’ process is 450 / (2/60) = 13,500 dozen.The total they are able to produce is therefore 10,000 dozen because it is limited by the ‘fill’ process and therefore the ‘fill’ process is the bottleneck.
April 11, 2021 at 11:58 am #616729I am using BPP revision kit and the answer indicated Cap as the bottleneck process.
April 11, 2021 at 3:46 pm #616778It is Cap as should be perfectly obvious from my workings. I obviously mistyped and wrote Fill instead of Cap. Read the last line of my previous reply and substitute the word ‘Cap” for ‘Fill’.
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