Process with Scrap

Consider the following four-step assembly operation with quality problems.

- The first resource has a processing time of 5 minutes per unit and one employee doing the operation

- The second resource has a processing time of 4 minutes per unit. It also has one employee doing the operation. However, this is a very delicate task and 80% of all products have to be scrapped after this step. - Two workers are staffed for the third resource. No quality problems occur at this resource and the processing time is 20 minutes per unit.

- At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit.

Questions:

1. For every unit of demand, how many units have to flow through the second step in the process?

2. Where in the process is the bottleneck?

a. Resource 1

b. Resource 2

c. Resource 3

d. Resource 4