1. Time take to bake bread – 12 minutesIn 1 hour, no. of breads which can be baked – 60/12 = 5 unitsTotal no. of breads to be baked – 4000 Number of units that must be baked simultaneously – 4000/5 = 800 units

2. Refer to the table below

Resource WorkersTime taken to make 40 units

Time taken to make 50 units

Time taken to make 60 units Total Time Cycle Time

of A (Minutes) (a) of B (Minutes) (b) of C (Minutes) (c) (a+b+c) Time/Workers

1 2 200 250 300 750 375

2 2 120 200 300 620 310

3 1 600 0 0 600 600

4 1 0 150 180 330 330

5 2 240 300 300 840 420

Bottleneck is Resource 3, hence capacity will be based on the time taken by resource 3.

Total no. of units produced = 40+50+60 = 150

Capacity = No. of units produced/Time Taken by Resource 3

= 150/600 = 0.25 units/min

3. A) Junior Accountant is the bottleneckB) Refer to Excel SheetC) Process Capacity won’t change since writing is not the bottleneck of the system

4. A) Bottleneck process – service A; Capacity = 20/240 = 20/4 people/hour = 5 people/hourTotal number of hours for which store is operational – 12 hoursFull Day Capacity – 12*5 = 60 people/dayCapacity Utilization – 20/60 = 33 %(Refer Excel for bottleneck analysis)

B) Bottleneck process shifts to service D; Capacity = 50/1000 = 3 people/hour Total number of hours for which store is operational – 12 hoursFull Day Capacity – 12*3 = 36 people/dayCapacity Utilization – 50/36 = 139 %Hence the resources are over utilized, an additional resource is required. Place the additional attendant to service D. This will shift the bottleneck to service A. We need to check for new capacity utilization.Capacity = 50/600 = 5 people/hour Total number of hours for which store is operational – 12 hoursFull Day Capacity – 12*5 = 60 people/day

Capacity Utilization – 50/60 = 83.33 %(Refer Excel for bottleneck analysis)

5. A) Total number of Associates at any given time – 200 Average age in the firm of an associate – 4 yearsNo. of Associates retiring from their post (either fired or moved up) – 200/4 = 50 Total no. of MBA grads to be hired from IIMA = 50

B) Total number of Managers at any given time – 60 Average age in the firm of a Manager – 6 yearsNo. of Managers retiring from their post (either dismissed or moved up) – 60/6 = 10 Hence, the firm needs to promote 10 associates to managers every year since there is no outside hiring for Managers50 Associates retire from their post every year out of which only 10 make it as manager (Rest are fired) – Probability of an associate becoming a manager =10/50 = 1/5So, odds that a new hire at Ahmedabad Consultancy will become a manager as opposed to being dismissed are 10:40 or 1:4

C) Total number of Partners at any given time – 20 Average age in the firm of a Partner – 10 yearsNo. of Partners retiring from their post – 20/10 = 2 Hence, the firm needs to promote 2 Managers to Partners every year since there is no outside hiring for Partners10 Managers retire from their post every year out of which only 2 make it as Partners (Rest are fired) – Probability of a Manager becoming a Partner =2/10 = 1/5Probability that an associate will become a Partner = (1/5)*(1/5) = 1/25So, odds that a new hire at Ahmedabad Consultancy will become a Partner as opposed to being dismissed are 1:24