Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Efficiency of bottleneck process

- This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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- August 2, 2021 at 3:42 pm #630166
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 unitsAnswer: 125%

I’m not sure why the answer is 125%… Appreciate your help Sir…

August 3, 2021 at 8:10 am #630211X 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%.

August 4, 2021 at 3:22 am #630322Dear Sir,

Thank you very much for the explanation

Truly understand nowAugust 4, 2021 at 8:24 am #630340You are welcome 🙂

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