Chapter 10, Problem 12PA

(a)

Summary Introduction

Interpretation: The number of administration clerks that should be hired is to be calculated.

Concept Introduction:

It is very necessary to maintain the capacity at desired levels to keep a demand supply match.

(b)

Summary Introduction

Interpretation: The current labor utilization of the coders are to be calculated when two coding specialists are currently on duty.

Concept Introduction:

The averagelaborutilizationiscalculated by dividing the totallaborcontent by the sum of the total idle timeand the labor content.

(c)

Summary Introduction

Interpretation: The total process capacity in units per hour for the five stage process is to be calculated.

Concept Introduction:

The process output is equal to minimum capacity of stages A, B, C, D and E.

The formula to calculate the capacity is given by,

  $\text{Capacity}=\frac{\text{Total}\text{time}\text{available}}{\text{Number}\text{of}\text{servers}\times \text{Time}\text{taken}\text{to}\text{complete}}$

(d)

Summary Introduction

Interpretation: The position of any bottleneck exists, and recommendation needed to improve this process is to be determined.

Concept Introduction:

Abottleneckis regarded as a congestion point in a production system that arises when the workloads reach too rapidly for the production process to handle.