3. Going back to our packaging line time study from last week, we see the following standard times for each of the four steps of their process:

What is the current hourly capacity of this four-step packaging process (# of trays)?

At the current cookie production process capacity of 320/hour and a tray that holds 12 cookies, is the packaging process able to keep up with the cookie production process?

How much excess capacity exists in the packaging process?

4. If the retail shop is as successful as anticipated, they will need to add another production line (buying new ovens, conveyor belts, and hiring workers) to increase capacity at some point in the future. Calculate the maximum number of cookies the current production line can produce per hour, per day (assume an 8-hour day), and per month (assume an average of 21 production days per month). What two strategies would you recommend to expand the production capacity without having to add another production line? What percentage of increased capacity could be realized from your strategies (show your calculations)? What potential problems could arise from each of your strategies?