krm8_ism_ch07 - Chapter 7 Constraint Management DISCUSSION...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Constraint Management DISCUSSION QUESTIONS 1. Examples of everyday bottlenecks include traffic lights, drive-thru windows at the bank or fast food restaurants. On the highway merging lanes and speed zones. Maintaining constant speeds, setting traffic lights to coordinate traffic patterns and only allow highway construction after rush hour. Fast food restaurants have two windows, pull over spots and new cash card options to reduce time at the window. 2. The primary economies of scale concern spreading the instructor’s salary over a larger class and filling classrooms to capacity (and then some). Diseconomies occur when additional help is required to review homework, administer tests, and coordinate schedules of students and assistants. Growth eventually requires larger classrooms or lecture halls. If we view the product as learning, there is a possibility that diminishing returns on the amount of learning occur as class size increases. Symptoms of diseconomies of scale setting in are decreased job satisfaction for instructors and unmotivated, dissatisfied students. If close customer contact is needed for this kind of service process, diseconomies of scale tend to set in earlier. 3. When demand for the drink is large enough, there are several ways that economies of scale would benefit the boy. First, he can save on raw material costs. For example, one 32-ounce box of lemonade mix costs less than four 8-ounce boxes. Also, he could get a price break by buying ice in bulk. Second, the cost of larger iceboxes can be spread over more units (sales), keeping the cost per sale low. Text problem p. 279 also asked for conditions that might lead to diseconomies of scale. PROBLEMS 1. Bill’s Barbershop a. B3-a = 10+8+15+20+9 = 62 minutes B3-b = 10+8+10+20+9=57 minutes b. B4 c. process cycle time is 20 min./60 = 3 customers/hr. (8 hrs) = 24 customers per day 2. Barbara’s Boutique a. 3 [the bottleneck is step T4 at 18 minutes – 3.33 customers or 3]
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
l PART 2 l Managing Processes b. Step T6 at 22 minutes limits Type B to 22/60 = 2.73 customers/hr. 3.33(.3) + 2.73(.7) = 2.90 customers on average c. Type A customers may wait at step T4. Type B customers may wait at step T6. All customers may wait at Step T1 because the arrival rate of customers could exceed the capacity 3. CKC Station X is the bottleneck – 2600 minutes Work Station Product A Product B Total Load W 10*90=900 14*85=119 0 2090 X 10*90=900 20*85=170 0 2600 Y 15*90=135 0 11*85=935 2285 4. CKC a. Traditional Method: Part B has the higher profit margin/unit Product A Product B Price 55.00 65.00 Raw and Purchased Parts 5.00 10.00 Labor 3.50 4.50 Profit Margin 46.50 50.5 Work Station Minutes at Start Mins. Left after Making 85 Bs Mins. Left after Making 90 As Can Only Make 70 As W 2400 1210 310 X 2400 700 700/10 = 70 Y 2400 1465 85 parts of B and 70 parts of A (Part B will use 1700 minutes at station X leaving 700 for Part a. Part
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/19/2009 for the course MANAGEMENT 00123 taught by Professor Ahmed during the Spring '09 term at Albany College of Pharmacy and Health Sciences.

Page1 / 45

krm8_ism_ch07 - Chapter 7 Constraint Management DISCUSSION...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online