The chart below shows a simple process. The flow unit moves through the first 5 processes. At the end of process 5, a simple inspection is performed and if the product is non-defective, it is sent to packing and shipping. If the product is defective, it is sent to a rework department where it is fixed and then sent to packing and shipping. About 95% of products are non-defective. Below are the resource requirements and processing times for each of the 7 stages.

Stage Time Resource

Process 1 7 minutes type A worker

Process 2 10 minutes type A worker (first 5 minutes only)

type B worker (entire 10 minutes)

Process 3 6 minutes type B worker

Process 4 20 minutes type C worker

Process 5 5 minutes type C worker

Rework 80 minutes type C worker

Pack & Ship 6 minutes type D worker

There are 6 type A, 5 type B, 8 type C, and 2 type D workers in the plant.

a) What is the theoretical capacity of each resource type?

b) What is the theoretical capacity of the entire process?

c) For each of the following situations, describe the effect on the theoretical capacity of the entire process, as well as any effect on the resources affected. Treat each situation as separate from the others.

i) The time to work process 1 is reduced from 7 minutes to 5 minutes.

ii) One type A worker is eliminated.

iii) The time to work process 4 is reduced from 20 to 18 minutes.

iv) The time to conduct process 3 is increased by 2 minutes, but this has the effect of eliminating defects, and therefore the rework stage.

v) All types of workers are completely cross-trained, enabling them to work at any of the 7 stages, as needed. (Note that you still require two workers during the first 5 minutes of process 2).