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    Product Design and Capacity

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    Please help with the following:

    How is process selection related to product design and capacity determination?

    Below is a description of the product in question:

    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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    Solution Preview

    Please see attachments for tables.

    1st Table:
    Step 2 is the bottleneck. Hence the system can produce only 175 units/hour. I have used this as input to second column. The ...

    Solution Summary

    The solution discusses how the process selection is related to product design and capacity determination.