The Peeps Factory Can Be Described as a Three Step

question 124

Essay

The Peeps factory can be described as a three step process consisting of Mixing, Forming, and Packaging. Peeps are made in batches of 1,000 and have a daily demand of 75,000 units during what the plant manager likes to call "the Peep season." Mixing has a cycle time of .02 seconds with a setup time of 30 seconds; Forming has a setup time of 24 seconds and a cycle time of .03 seconds, and Packaging has a setup time of 15 seconds with a cycle time of .04 seconds. Each process step is handled by one operator, who is available for 8 hours a day. What is the process bottleneck if each process step is assumed to have 100% uptime?

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Definitions:

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment, which are not expected to be consumed or converted into cash within a year.

Property, Plant, Equipment

Long-term assets held for business use and not intended for resale, such as buildings, machinery, and vehicles, subject to depreciation.

Depreciated

A decrease in the value of an asset over time due to wear and tear or obsolescence.

Operating Efficiency

A measure of how effectively a company uses its resources to generate profits.