Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The journal entry process requires the review, approval and input of a company's business transactions in the General Ledger. In one firm, transactions arrive to be entered in the Ledger at an average rate of 10 hour. The following table
provides information about the process. Only one person is needed to perform each step.
Process Step
Review
Approve
Input
Avg. Time to Perform Step
(per entry)
3 min
5 min.
0.5 min
a. i) Find the capacity of the process and identify the bottleneck step.
ii) Find the raw process time.
iii) Find the throughput of the process.
b. On average, there are 8 transactions in process." How long, on average, does a transaction spend in the system?
Number of Personnel
Available
2
2
1
c. Up to now, two full-time managers have been responsible for approving entries. The firm is experimenting with a computerized approval process. The computer program runs in batch mode at the beginning of each 8-hour
day, and is completed almost instantly. Transactions continue to arrive at the rate of 10/bour during the 8-hour day. You may assume that arrivals are distributed uniformly throughout the day
d. How will the computerized process affect the time in system? The number in system? The throughput? Describe the impact as precisely as you can.
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Transcribed Image Text:The journal entry process requires the review, approval and input of a company's business transactions in the General Ledger. In one firm, transactions arrive to be entered in the Ledger at an average rate of 10 hour. The following table provides information about the process. Only one person is needed to perform each step. Process Step Review Approve Input Avg. Time to Perform Step (per entry) 3 min 5 min. 0.5 min a. i) Find the capacity of the process and identify the bottleneck step. ii) Find the raw process time. iii) Find the throughput of the process. b. On average, there are 8 transactions in process." How long, on average, does a transaction spend in the system? Number of Personnel Available 2 2 1 c. Up to now, two full-time managers have been responsible for approving entries. The firm is experimenting with a computerized approval process. The computer program runs in batch mode at the beginning of each 8-hour day, and is completed almost instantly. Transactions continue to arrive at the rate of 10/bour during the 8-hour day. You may assume that arrivals are distributed uniformly throughout the day d. How will the computerized process affect the time in system? The number in system? The throughput? Describe the impact as precisely as you can.
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