Rambler Manufacturing produces three clutch plates for small automobiles at its factory in Columbus, Ohio. The three processes shown in Exhibit 11.32 are composed of common and different work activities to manufacture the clutch plates.

Exhibit 11.33 provides information on each clutch plate’s selling price, value-added manufactured cost, and net contribution to profit and overhead per unit. The value-added cost is the sum of raw materials, purchased units, and equipment and labor work on the clutch plate.

a. For each clutch plate process, where is the bottleneck workstation and what would you expect to see if you visited the process? Cite one TOC principle from Exhibit 11.23 that explains your answer.

b. What workstation would you expect the most idle time (i.e., lowest workstation utilization)?

Cite one TOC principle from Exhibit 11.23 that explains your answer.

c. What is the total revenue and contribution to profit and overhead per hour for each clutch plate applying the TOC logic to the problem?

d. Given your answers in part (c), which clutch plate would you try to sell based on total revenue per hour and total contribution to profit and overhead per hour criteria?

e. If you could recommend one, and only one, process improvement, what would it be? Explain.

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EXHIBIT 11.32 Three Process Flows (Production Lines) for Rambler Manufactured Clutch Plates Workstation A 12 units/hour Workstation C 4 units/hour Workstation D 20 units/hour Workstation C 4 units/hour Workstation B 6 units/hour Workstation B 6 units/hour Clutch plate 1 Clutch plate 2 Clutch plate 3