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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Question 
Bottleneck Review
[u09a3] Unit 9 Assignment 3
Bottleneck Review
Bottleneck Review
Complete problem 2 on page 583 of your textbook. For help on how to complete this problem, see the Solved Problems on pages 578–582. When completed, submit your answers as an attachment in the assignment area. Be sure to include your work with the answer.
Resources
- Bottleneck Review Scoring Guide
- Due Date: Unit 9
Percentage of Course Grade: 2%.
| CRITERIA | DISTINGUISHED |
| Accurately solves all computation aspects of the bottleneck review problem. 50% |
Accurately solves all computation aspects of the problem and shows work. |
| Provides summary, and/or rationale useful in interpreting the bottleneck review results. 50% |
Accurately summarizes salient points with supporting rationale for interpreting results. |