Bottleneck Review

Problem 2

First, we evaluate the deviations and then, the cumulative deviation with the given data.

Deviation=Actual Input-Planned Input

The cumulative deviation is calculated by adding all the deviations up to the period in question.

The backlog changes when the actual input is different from the actual output in a period meaning some of the process input is not cleared.

Jack’s Box Company

Input Information (hours)
		4	5	6	7	8
Planned Input		40	50	50	60	60
Actual Input		45	45	45	55	60
Deviation		5	-5	-5	-5	0
Cumulative Deviation		5	0	-5	-10	-10
Output Information (hours)
		4	5	6	7	8
Planned Output		70	70	70	70	70
Actual Output		60	60	60	60	60
Deviation		-10	-10	-10	-10	-10
Cumulative Deviation		-10	-20	-30	-40	-50

Backlog	75	60	45	30	25	25

Calculate the percentage of planned output needed to complete the planned inputs using the formula:

% of planned output=(planned input+backlog)/(planned output)

Calculating the three known values from the available data:

Planned Input = 40+50+50+60+60 = 260

Total backlog = 60+45+30+25+25 = 185

Planned output = 70+70+70+70+70 = 350

Applying the formula:

% of planned output=(260+185)/350

=1.27

Multiplying the result with 100%

=127%

Therefore, the percentage of planned output at work center 3 is 127%

Calculate the percentage of planned input that actually happened using the formula:

% of planned input=(actual input+backlog)/(planned input+backlog)

Calculating the three known values from the available data:

Actual input = 45+45+45+55+60 = 250

Planned Input = 40+50+50+60+60 = 260

Total backlog = 60+45+30+25+25 = 185

Applying the formula:

% of planned input=(250+185)/(260+185)

=0.978

Multiplying the result with 100%.

=97.8%

Therefore, the percentage of planned input is 97.8%

Calculate the percentage of available output that was actually accomplished using the formula:

% of available output=(actual output)/(planned output)

Calculating the three known values from the available data:

Actual output = 60+60+60+60+60 = 300

Planned output = 70+70+70+70+70 = 350

Applying the formula:

% of available output=300/350

=0.857

Multiplying the result with 100%.

=85.7%

Therefore, the percentage of available output 85.7%

From the calculations above, the percentage of planned output is equal to 127% which is greater than 100%; this implies that the actual output is less than the expected output.

The percentage of planned input is less than 100% which implies that actual input is less than the planned input. Finally, the percentage of available output that was actually accomplished is less than 100% implying that the actual output is less than the planned output.

The three calculated percentages show that Work Center 3 is a bottleneck.

References

Reid, R. D., & Sanders, N. R. (2016). Operations Management, Binder Ready Version: An Integrated Approach. John Wiley & Sons.

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