Project description
Subject: Operations Management.
Theory of Constraints:
The student will be able to:
□ Identify the constraint operation and determine the production capacity of a process
□ Calculate the throughput of a process and demonstrate how to apply the five steps for improving throughput
Assessment Problem:
A small diner is open for lunch each day. The lunch counter seats a maximum of 12 customers at one time. The average time required for a customer to complete lunch 30 minutes. It takes 4
minutes of a server’s time to take care of a customer. There are two servers assigned to the counter. The cook in the kitchen can prepare an order in 1.5 minutes. Answer the following questions,
assuming the diner is relatively full and operating (i.e., you are not at the start-up time).
a) What is the constraint in the diner? Show your work to support your answer
If the average meal costs $10 and the variable cost is $3 per meal, what is the maximum throughput (production capacity) of the diner per hour?
b) A new advertising campaign is estimated to increase the number of customers to 36 customers per hour. What are some ways the diner can accommodate this increase.
Please use the text book : Operations and Supply Chain Management, F. Robert Jacobs and Richard B. Chase, McGraw-Hill/Irwin, 13th edition, 2011. ISBN-10: 0073525227 or ISBN-13: 978-0073525228
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