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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Efficiency of bottleneck process
Good day Sir,
This is a question from the BPP Revision Kit:-
—–Scenario—-
Corrie
Restricted process: Alpha ( 8 hours per day: X=1200 units/hr, Y=1500 units/hr, Z=600 units/hr)
What is the efficiency of the bottleneck process given the output achieved is
X=6000 units
Y=4500 units
Z=1200 units
Answer: 125%
I’m not sure why the answer is 125%… Appreciate your help Sir…
X is expected to take 60/1200 = 0.05 minutes per unit. The actual production of 6,000 units is therefore expected to take 6,000 x 0.05 = 300 minutes.
Similarly the actual production of Y is expected to take 180 minutes and Z to take 120 minutes. So they would have expected the actual production to have taken a total of 600 minutes or 10 hours.
Given that they managed to achieve this in an 8 hour day, they are being more efficient than expected. Doing 10 hours worth of work in 8 hours gives an efficiency of 10/8 = 125%.
Dear Sir,
Thank you very much for the explanation
Truly understand now
You are welcome 🙂