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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

 
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