In this case, the utilization of effective capacity for each operation represents the percent of maximum capacity each operation is actually expected to maintain for next month. For example, for next month, Operation B's effective capacity is expected to be 77 percent of its maximum capacity, 455 units (= 100 + 80 + 150 + 125). Thus, Operation B is expected to product 350.35 units per hour (= 455 units * 77 percent) next month. Operation's D effective capacity can be calculated in the same way: 308.125 units per hour (= 425 units * 72.5 percent). ?
The following table shows the company's overall production process information for next month.
For the company's overall production process next month:
1. Calculate maximum capacity. For this question, you need to take a look at the maximum capacity of each operation so that you can find the bottleneck in this process.
2. Calculate effective capacity. For this question, you need to take a look at the effective capacity of each operation so that you can find the bottleneck in this process.