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FMIS 3301

CAPACITY ASSIGNMENT

1. A process for the manufacture of a component of a riding mower utilizes the following
resources:

Unit Number of Total Process Resource


Activity Load Capacity Resource Capacity Capacity Utilization
(Min.) (hourly) Units (hourly) (%)
MOLD 2 30 1 30 17.4 57.1
WELD 1 60 1 60 28.6
ENGINE ASBLY 3 20 1 20 85.7
STAMP 1 1 60 1 60 28.6
WELD 2 3 20 1 20 85.7
STAMP 2 2 30 1 30 57.1
SEAT ASBLY 7 8.57 2 17.14 100
FINAL ASBLY 30 2 10 20 85.7

a. Suppose that peak demand is now 15 units per hour. Determine whether the process
throughput is demand constrained, or capacity constrained.
b. What is the process capacity, and which are the bottleneck(s)?
c. A present customer wants to increase his orders by 3 additional units per hour. What
are the resource requirements?
d. In addition to (c), a new customer is willing to purchase 4 additional units per hour. What
are the resource requirements?

2. Production of a widget is currently a two-stage process. The first stage (cutting and
planning) takes 3 minutes per unit of input. The output of the first stage is then finished
in the second stage, which takes 4 minutes. Assume all production can be sold at a
mark-up (over costs) of $3.00 per unit. Samantha the supervisor is considering an
upgrade to an NC (numerical control) machine that can do all the tasks (cutting, planing
and finishing); moreover, this machine will take just 5 minutes to produce one unit of a
widget.
a. As a result of the upgrade, flow time per widget will go: (up, down, stay the same)
b. As a result of the upgrade, monthly margin generated will go: (up, down, stay the
same)

3. A clinic uses the same operating rooms (ORs) for diagnostic, cosmetic, and reparative
surgeries. A diagnostic surgery takes an average of 2 hours, a cosmetic surgery an
average of 1.5 hours, and a reparative surgery an average of 3.5 hours. The ORs are
available 18 hours per day. If 50% of the surgeries performed are diagnostic, 20% are
cosmetic, and the remainder are reparative, what is the average daily capacity of an
operating room?

4. A process has two activities in sequence. The first activity (A) is continuous, followed by
a sequential batch activity (B). The table below lists their characteristics:
ACTIVITY TP B S What is the process capacity?
A 5m - 0
B 2 50 20m