variability impact_with numbers

variability impact_with numbers - The Impact of Variability...

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The Impact of Variability on Process Performance
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View Full DocumentRight Arrow Icon has just introduced a new type of snowboard called the RadPad. And since its prime target market is baggy-pants-wearing boarders who use the word “gnarly” far too much, it is anxious to release the product by the time of the winter X-Games. The product is fairly simple to make, requiring 5 steps performed in serial. The process is a “lean process” utilizing only a small amount of work-in-process inventory. The basic process will be nearly identical to the production line for the other snowboard RadX. Sample processing times for each step in the RadX process are provided in the table on the next page (a station consists of machines and people responsible for one step in the production). Your 17 year-old CEO explains to you that the process should be capable of producing 68 units per 20 hour period in order to meet the potential demand. He explains that underproduction could result in lost revenue and overproduction will result in higher operating costs. Would a replica of the current process for RadX be appropriate for the new RadPad? Is it too little or too much capacity? RadPad Scenario
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Institute of Technology.

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variability impact_with numbers - The Impact of Variability...

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