How much system capacity can be gained by adding capacity

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Reference no: EM13787687

Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:

Steps Description                    Capacity (Units/Hour)

1 Prepare food                                       200

2 Measure and place in plastic pouch         175

3 Prepare cardboard box                          200

4 Insert pouch into box                            300

5 Shrink-wrap box                                   200

What is the system capacity, and which is the bottleneck department?

How much slack (unused capacity) is available in other departments?

How much system capacity can be gained by adding capacity to the bottleneck?

What are the key factors that determine when to add capacity?

Why would an organization want to reduce its capacity?

Make and include calculations

Reference no: EM13787687

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