Consider the Following Production Process

question 27

Essay

Consider the following production process. It is trying to meet a market demand of 250 units per week.

Step 1: Material release schedule
Step 2: Drilling (capacity is 300 units/week)
Step 3: Tapping (capacity is 150 units/week)
Step 4: Grinding (capacity is 300 units/week)
Step 5: Coating (capacity is 200 units/week)
Step 6: Inspection (capacity is 500 units/week)
a. Where should buffers be placed?
b. Which resource is the drum?
c. Where should the rope be placed?
d. Which resource is the bottleneck?
e. Which resource is the CCR?

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Definitions:

Economies of Scope

Cost advantages that a business experiences when it increases the variety of products or services it offers.

Customer Value Chain

A series of steps a company takes to deliver a product or service to the customer, focusing on adding value at each stage to meet customer needs.

Selling Products Globally

The process of marketing and distributing goods or services outside of the company's home country, often involving considerations of cultural differences, legal requirements, and logistics.

Multi-business-unit Companies

Organizations that operate across different industries or markets, managing a portfolio of businesses as separate units under one overarching corporate umbrella.