Calculating theoretical process capacity


Assignment:

A process-design team is analyzing the capacity of a process. The team has developed the flowchart in Figure. The numbers between parentheses indicate the processing times in minutes, and the labels above or below each activity indicate the resource type (i.e., R1 = resource 1). The process has one unit of resource R1, two units of resource R2, and three units of resource R3. Assume that a reworked job has the same chance to pass inspection as a regular job.

a. Calculate the theoretical process capacity and identify the bottleneck.
b. If the actual throughput rate of the process is 1 job/h, what is the capacity utilization?

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Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Strategic Management: Calculating theoretical process capacity
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