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Hi John!
Could explain how reducing the machine timer per unit to make the product will not increase the throughput?
Thanks!
It can increase the throughput, but only if:
a) it is the machine time per unit in the bottleneck resource that is reduced
and
b) production of the product is not currently meeting full demand
and
c) as a result of producing more, it does not make a different machine the bottleneckABC Company uses throughput accounting. Machine time is the current binding constraint on production output, and management are looking for ways to increase the throughput accounting (TA) ratio for a product that the machine is used to manufacture.
Which of the following will have NO effect on the TA ratio?The answer in the kit is “Reducing the machine time per unit to make the product”.
– The machine is the bottleneck. By reducing the machine time, we would be able to produce the same amount of unit but in less minutes. Therefore this could increase the bottleneck. So why this is not the case here?
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