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Efficiency of bottleneck process

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 10 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 2, 2021 at 3:42 pm #630166
    siawching
    • Topics: 8
    • Replies: 5
    • ☆

    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…

    August 3, 2021 at 8:10 am #630211
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49600
    • ☆☆☆☆☆

    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%.

    August 4, 2021 at 3:22 am #630322
    siawching
    • Topics: 8
    • Replies: 5
    • ☆

    Dear Sir,

    Thank you very much for the explanation
    Truly understand now

    August 4, 2021 at 8:24 am #630340
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49600
    • ☆☆☆☆☆

    You are welcome 🙂

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    Posts
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