Question: To go from Idea Generated to Idea Approved, the idea must go through 5 stages: Idea Generated -> Stage 1 -> Stage 2 -> Stage

To go from Idea Generated to Idea Approved, the idea must go through 5 stages:

Idea Generated -> Stage 1 -> Stage 2 -> Stage 3 -> Stage 4 (where 50% is rejected)-> Stage 5 (where 20% is rejected) -> idea approved

Observe that 50% of the ideas are rejected after the Focus Group stage and 20% of the ideas are rejected after the Final Decision stage.

The following table summarizes the time taken per idea by each employee and the number of employees staffing each resource. Everyone works 8 hours per day, i.e., in your calculations, assume 1 day equals 8 hours:

Number of employees

Time per idea

Stage 1

2

2 hours

20

4 days

Stage 3

7

2 days

1

3 hours

Stage 5

1

4 hours

2 Ideas are generated each day at the "Idea Generated" stage. Assume 1 day = 8 hours

a) What is the capacity of stage 3 in ideas/day?

b) What is the implied utilization of each stage?

c) What is the maximum number of ideas that reach the "Idea approved" stage?

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