Take order wash mix spoonload & set coolbake 6/1-2 doz219 unlo- ad pack 25 get pay 1/order Problem 5.2: Flow unit = 1 order of 1 dozen. The unit loads of the resources are : Kristen = 6+ 2 = 8 min/unit; Roommate = = 4 min/unit; Oven = 1+9 = 10 min/unit b) The theoretical capacities of the resources are: Kristen = 60/8 = 7.5 orders/hour; RM = 60/4 = 15 orders/hour; Oven = 60/10 = 6 orders/hour min. a) Process Theoretical Capacity = min {7.5, 15, 6} = 6 orders of 1 dozen/hr. The oven is the theoretical bottleneck. Utilization at full capacity: Kristen = 6/7.5 = 80%; RM = 6/15 = 40%; Oven = 6/6 = 100%.

c.1) Purchasing an additional oven doubles the oven resources pool capacity to 12 orders per hour. The process capacity, however, is only increased to 7.5 orders per hour as the bottleneck shifts to Kristen. c.2) Cross training pools Kristen and RM into a single resource pool (Workers). The unit load is 8+4 = 12 minutes per unit, and the theoretical capacity of this resource pool (workers) is increased to (60)(2)/12 = 10 orders of 1 dozen/hr. With one oven, cross training does not affect the process capacity (since the oven remains the bottleneck). With two ovens, however, the bottleneck shifted to Kristen before cross training as determined earlier. Therefore, cross training increases the process capacity to 10 orders per hour.

Diminishing Marginal Return. Doubling the capacity of oven does not double production. The bottleneck shifts to another recourse.