Problem 3: Theory ofConstraints The manufacturing company you work for has a four stepassembly process shown in the flow diagram below. process 1 capacity=90 units/hour > process 2 capacity=60 units/hour > process 3 capacity=80 units/hour process 4 capacity=70 units/hour a) What is the maximum outputthis assembly process could produce in 8 hours? b) If the capacity of Process 4 is increased to 90 units/hour, howmany units can be assembled in 8 hours? c) If the capacity of Process2 is increased to 80 units/hour, how many units can be assembled in 8 hours? Productivity andProductivity Growth Wells Fargo Bank employs three loan officers, eachworking eight hours per day. Each officer processes an average of five loansper day. The bank’s payroll cost for the officers is $820 per day, and there isa daily overhead expense of $500.a) What was the laborproductivity (in loans per labor hour) for the bank? b) What was the capitalproductivity (in loans per dollar cost) for the bank?For parts c through e, the bank is considering the purchase of a newcomputer system for the loan officers. The software will enable each loan officer to process eight loads perday, but daily overhead expenses will increase to $550.c) What is the new laborproductivity (in loans per labor hour) for the bank? d) What is the new capital productivity (in loans per dollar cost)for the bank? e) What is the capitalproductivity growth if the software is purchased?
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