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John Moffat.
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- April 28, 2018 at 9:35 pm #449233
A manufacturing company uses 3 processes to make its two products, X and Y. The time available on the three processes is reduced because of the need for preventative maintenance and rest breaks.
The table below details the process times per product and daily time available.Process 1
Hours Available/day : 22
Hours required to make 1 unit of Product X: 1.00
Hours required to make 1 unit of Product Y: 0.75Process 2
Hours Available/day : 22
Hours required to make 1 unit of Product X: 0.75
Hours required to make 1 unit of Product Y: 1Process 3
Hours Available/day : 18
Hours required to make 1 unit of Product X: 1
Hours required to make 1 unit of Product Y: 0.5Daily demand for product X and Product Y is 10 units and 16 units respectively.
Question:
Sir, How is process 2 the bottleneck here? As per the Kaplan Revision Kit its mentioned that Process 2 is the bottleneck.
Which I couldn’t understand.
Could you please explain.
Thank you very much in advance.
Regards,
LilaApril 29, 2018 at 1:29 pm #449299The time needed in Process 1 to make 10 units of X and 16 units of Y is (10 x 1.00) + (16 x 0.75) = 22 hours. There is 22 hours available, and so Process 1 is not a bottleneck.
Do the same for Processes 2 and 3, and you will find that you have enough time available in Process 3 – so this is not a bottleneck. However you will find that there is not enough time available in Process 2. Therefore Process 2 is the bottleneck and because of Process 2 they will not be able to produce the full number of units that are demanded.
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