Step 3 has the highest runtime for processing customers and the lowest individual capacity, making it the bottleneck that limits the overall process capacity. Capacity utilization is calculated by dividing the overall capacity by the individual capacity of each step, with Step 5 having the lowest utilization in this scenario.
Step 3 has the highest runtime for processing customers and the lowest individual capacity, making it the bottleneck that limits the overall process capacity. Capacity utilization is calculated by dividing the overall capacity by the individual capacity of each step, with Step 5 having the lowest utilization in this scenario.
Step 3 has the highest runtime for processing customers and the lowest individual capacity, making it the bottleneck that limits the overall process capacity. Capacity utilization is calculated by dividing the overall capacity by the individual capacity of each step, with Step 5 having the lowest utilization in this scenario.
1. Runtime is the time required to process a customer to another step.
In this scenario, we have 7 different runtimes in which the least time
recorded was in step 5 whereas the highest runtime recorded for processing of customers is in step 3. 2. Now we come to individual capacity which tells us the maximum of a customer being served on each step. In the above scenario, the individual capacity of step 5 is high and step 3 is the lowest. We calculate individual capacity by division of 6 days x 8 hours x 60 mins and runtime of each step. 3. Now we find the bottleneck in all capacities termed as overall capacity which in this case is Step 3 because its value is the smallest i.e.,181.62. A bottleneck is a resource that limits the service delivery of a process. 4. Now to find how much capacity is being utilized so for that we find capacity utilization and for that, we do this, Overall Capacity ÷ Individual capacity. In this scenario Step, 5 utilization capacity is the least.