1. 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.

Stage A (5)

Stage C (4)

Stage B (6)

Stage D (4)

1. How many administrative clerks should be hired to do Stage A work, assuming a target utilization of 85 percent?
2. What is the current labor utilization of the coders at Stage B if two coding specialists are currently on duty?
3. If there are 2 administrative clerks, 3 coding specialists, and 3 assistant managers on duty, what is the process (throughput) capacity in units per hour?
4. Where do any bottlenecks exist and what do you recommend to improve this process?