Consider the Following Production Process

question 15

Essay

Consider the following production process.It is trying to meet a market demand of 500 units per week. Step 1: Material release schedule
Step 2: Drilling (capacity is 500 units/week)
Step 3: Tapping (capacity is 450 units/week)
Step 4: Grinding (capacity is 600 units/week)
Step 5: Coating (capacity is 400 units/week)
Step 6: Inspection (capacity is 1000 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:

Direct Labor Cost

The total cost of all the labor directly involved in the production of goods or services, excluding indirect expenses such as supervisor salaries and utilities.

Factory Overhead Cost

Indirect manufacturing costs not directly tied to the production of goods, such as utilities and rent for the production facility.

Finished Manufactured Product

Items that have completed the manufacturing process and are ready for sale.

Conversion Cost

Costs incurred during the transformation of raw materials into finished goods, specifically focusing on direct labor and manufacturing overhead expenses.