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Since Jack believes that Work Center 3 is his bottleneck, he has asked you to do

ID: 3199318 • Letter: S

Question

Since Jack believes that Work Center 3 is his bottleneck, he has asked you to do the following:

(a) Calculate the percentage of planned output needed to complete the planned inputs (planned input+backlog/planned output)(planned input+backlog/planned output) at Work Center 3.

(b) Calculate the percentage of planned input that actually happened (actual input+backlog/planned input+backlog)(actual input+backlog/planned input+backlog).

(c) Calculate the percentage of available output that was actually accomplished (actual output/planned output) at Work Center 3.

(d) Given your results, do you believe that Jack is correct in assuming that Work Center 3 is his bottleneck? Justify your answer.

Explanation / Answer

(a) Calculate the percentage of planned output needed to complete the planned inputs (planned input 1 backlog/ planned output) at Work Center

85.71%

For a total of averaged of 74.29%

3.(b) Calculate the percentage of planned input that actually happened (actual input 1 backlog/planned input 1 backlog).

100.00%

For an average of 96.83%

(c) Calculate the percentage of available output that was actually accomplished (actual output/planned output) at Work Center 3.

85.71%

For an average of 85.71%

(d) Given your results, do you believe that Jack is correct in assuming that Work Center 3 is his bottleneck? Justify your answer.

This may vary depending on the utilization and capacity of the other Workcenters. Furthermore, it will depend on the key point metrics being utilized to determine if this is a bottleneck or not. It is clear that it is not at a 100% capacity with the Output that it is generating, however, we would need to review additional constraints on the other Workcenters as well as understand how this can compromise other Workcenters and processes.

Planned output needed 57.14% 71.43% 71.43% 85.71%

85.71%

For a total of averaged of 74.29%