Reference no: EM132804729

What is the process cycle time of this process?

Those of you who have eaten at Bliss House know that they have a very efficient production process. But is it as efficient as possible? Sandwich preparation at Bliss is as follows: customers place and pay for their order, they give the receipt to the bald dude who shouts their order, the meat is then grilled while, simultaneously, the onions/mushrooms/peppers are sautéed with seasonings, the meat and sautéed items are then assembled in a sandwich, which is toasted, and wrapped. This process is depicted below: each box represents a step in the process and specifies the time required by the person/machine used for that step. Note there are five grilling machines, three griddles for sautéeing, and four toasters.

1. Where is the bottleneck? Explain. Would the bottleneck be affected if one griddle is out of order?
2. What is the process time of the system?
3. It is forecasted that in one day (1day = 20 hours), Bliss House experiences demand for 750 sandwiches. Does the current production process have the capacity to accommodate this demand? Explain.
4. Assume that the marginal profit from one sandwich is $2. Bliss house has capital of up to $250000 that can be invested to improve the business and increase capacity. The cost of a new toaster is $50000; the cost of a new grill is $125000; and that of a new griddle is $75000. We assume that Bliss House will undertake an investment if that investment generates, in the next two years, additional profits that cover the initial capital; (1 year = 350 days). Having in mind your previous analysis (1-4), what do you recommend Bliss House does?