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Perform a capacity analysis of the process given below. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 20 units per hour and each unit must be worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant manager(s) do Stages C and D work and are cross-trained to do both jobs. The coding specialist(s) do Stage B work.
What is the current labor utilization of the coders at Stage B if two coding specialists are currently on duty?
a. More than 100% but less than or equal to 105%
b. More than 90% but less than or equal to 95%
c. Less than 90 percent
d. More than 95% but less than or equal to 100%
Expert Answer
When the task required 6 minutes in stage B. In an hour it will finish 60/6=10 units.According to in one hour Stage A will finish 60/5=12 unit.There are 2 coders so they have potential of 10*2=20 units. But only 12 units reached to stage B in an hour.
Labor utilization rate=12/20=60%.
Answer is C. Less than 90%.
