Life is simple at the Sleepy Time Company. The business produces a single product in a straightforward production process involving machines A, B and C, each run by a separate department. The process begins at machine A, where raw material is converted into a single component. The component passes through machine B where it is converted into the finished product. The completed product passes to machine C where it is tested and packaged. It is then shipped to the customer. The demand for this product is unlimited. Aware of the potential market, the manager of Department B has just begun an efficiency drive to increase the rate of output of his department by 50 percent.
Required:
Assess the effectiveness of the Department B manager’s proposal for each of the following situations. In each case, identify the current rate of output for the company, and the effect of the proposed efficiency drive on this rate; where appropriate, suggest an alternative approach to increase Sleepy Time rate of output.
1. Machine A completes 120 units per hour, machine B completes 70 units per hour, machine C completes 110 units per hour
2. Machine A completes 120 units per hour, machine B completes 140 units per hour, machine C completes 130 units per hour
3. Machine A completes 120 units per hour, machine B completes 140 units per hour, machine C completes 100 units per hour
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