EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 10, Problem 3PA
Summary Introduction
Interpretation: The workload time needs to be calculated using the given information with the help of workload formula.
Concept Introduction: Capacity measurement is an important concept in operations management which helps in capacity planning for increase or decrease in demand in both short term and long term.
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Identify the process's existing capacity and determining whether the process's present capacity cushion is adequate ?
In view of capacity planning, define the efficiency and utilization with the examples of each component.
Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:
Steps
Description
Capacity (Units/Hour)
1
Prepare food
200
2
Measure and place in plastic pouch
175
3
Prepare cardboard box
200
4
Insert pouch into box
300
5
Shrink-wrap box
200
What is the system capacity, and which is the bottleneck department?
How much slack (unused capacity) is available in other departments?
How much system capacity can be gained by adding capacity to the bottleneck?
What are the key factors that determine when to add capacity?
Why would an organization want to reduce its capacity?
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- Manufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead)2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to laborand 15% as to overhead due to internal failure) 400 Cost data for the month:In process beginning:Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs:Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is?The cost of spoilage charged to revenue is?arrow_forwardCapacity analysis of the process,including the strategies used to address expected customer demands in McDonald'sarrow_forwardMonique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process: Steps Description Capacity (Units/Hour) 1 Prepare food 200 2 Measure and place in plastic pouch 175 3 Prepare cardboard box 200 4 Insert pouch into box 300 5 Shrink-wrap box 200 What are the key factors that determine when to add capacity? Why would an organization want to reduce its capacity?arrow_forward
- What is the fundamental distinction between design capacity and effective capacity? Provide a brief examplearrow_forwardUse excel to show formulas 1. A company is designing a product layout for a new product. They plan to use this production line 16 hours a day in order to meet forecasted demand of 1200 units per day. For output to equal forecasted demand, what should be the actual cycle time for this production?arrow_forwardIdentify a business operation to which you have access to information and operation to observe the physical space of the business. You can choose area of service such as clinic, restaurant, café, a specific department of a hospital/school or any other relevant business or service setting. Collect information about the capacity of service. Additionally, obtain the average number of customers obtained service for the past 6 months (each month separately). The word limit for this assignment shall be 2500 words. And the assignment shall include the following: Analyze and evaluate literature of capacity management and explain different capacity strategies and capacity constraints. Analyze and evaluate literature on demand management and explain demand management strategies. Also address the changing nature of the market demand for products or services Based on the information you have collected from the organization; discuss about the capacity and demand management strategies they are…arrow_forward
- Explain how the capacity analysis responds when a large number of processes are running at the same time.arrow_forwardIn an essay, suppose you are opening up an an Applesbee's restaurant. describe the capacity analysis of the process, including the strategies used to adress expected customer demandarrow_forwardDraw a sequence diagram on this scenario. Consider an e commerce website, the customer will search for the items either by category, by price, by color or by size. the customer will add the selected items to the shopping cart. He/she can either continue shopping or can perform checkout. On checkout bill/invoice will be generated and the customer will enter personal information including email, phone and address; will choose cash on delivery option or card payment. If card payment selected, he/she will enter the card information. The bank object will validate the card, if validated the required amount will be deducted and the item will be dispatched to the provided address in both cases (COD/ valid card payment).arrow_forward
- What are the impacts of flow production method to cost reduction? Please provide a detailed explanation and reasoning for each impactsarrow_forwardBased on the data from the below table: b. What is the system capacity in the total number of car arrivals per hour? Which resource(s) is (are) the bottleneck(s)? System Capacity: Bottleneck: Resources and task times are as follows: Service Oil & filter change Transmission fluid check Tire rotation Wheel balancing Number of employees 2 1 2 2 Time required/employee 12 minutes 5 minutes 15 minutes 30 minutesarrow_forwardExplain the concept of capacity planning and its significance in system management.arrow_forward
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