Company CBF is the manufacturer of circuit boards and includes various MNC’s as its customers. Various steps are undertaken by the company and use various machineries with the specified run time. The existing capacity of the plant is to produce 1,000 units per day but the current production of the company is 700 units per day. To identify the reasons for underutilization of capacity Company CBF hires an external person to make certain long term and short term recommendations. To determine: The impact of losses arising in the process during inspection and final testing steps.

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Chapter 7, Problem 1.4CQ

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Case Summary: Company CBF is the manufacturer of circuit boards and includes various MNC’s as its customers. Various steps are undertaken by the company and use various machineries with the specified run time. The existing capacity of the plant is to produce 1,000 units per day but the current production of the company is 700 units per day. To identify the reasons for underutilization of capacity Company CBF hires an external person to make certain long term and short term recommendations.

To determine: The impact of losses arising in the process during inspection and final testing steps.

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