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A cell-phone repair shop consists of three processes. Step 1 requires 6 minutes per unit, step 2 requires 5 minutes per unit and step 3 requires 7 minutes per unit. 30% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.5 units per minute Instruction: Round your answer to three decimal places What is the capacity of the shop in units per units per minute)?

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Answer:

Step 2 = 6 minutes

Step 2 = 5 minutes

Step 3 = 7 minutes

30 percent of 3 needs rework

Total time = 6+5+7 = 18 minutes

We start over from step 2

5+7 = 12

0.3 x 12 = 3.6 minutes

Total time = 18 + 3.6 = 21.6 minutes

Units per minute = 1/21.6 = 0.046

This is the capacity