OM (with OM Online, 1 term (6 months) Printed Access Card)
OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 10, Problem 13PA

(a)

Summary Introduction

Interpretation: The number of administration clerks that should be hiredisto be calculatedassuming target utilization for them of 90%.

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 is to be determined when the two coding specialists are currently on duty.

Concept Introduction:

The averagelaborutilizationiscalculated by dividing the totallaborcontent by the sum ofthe total idle timeand the laborcontent.

(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 capacity and the capacity of the bottleneck are equivalent. The process capacity is useful to determine customers per hour or parts per day.

(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.

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