Interpretation - As per the previous records maximum no. Of customers are buying 1 item and 60% of the time they are paying by using credit card. The focus should be reducing the processing time of credit card payments and eliminating the check payment method, as it’s the slowest process and accounts for only 5% of sales.i) Process capacity - Process capacity is always equal to capacity of the bottleneck step’s capacity, as the process performance will always be limited by the constraint or bottleneck present in the process.
Bottleneck or constraint – is the step in the process flow diagram, which has lowest capacity, or the process, which has longest processing time. In this case bottleneck step is paying by check, as it takes longest processing time 3 mins.
Process capacity is always equal to capacity
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Adding more registers would allow for capacity to meet the demand during the peak hours on Friday morning (thanksgiving). Adding the additional resources will also utilize the resources available properly, as some of the resources are idle resources in the process.
• The store manager can hire more part-time employees during thanksgiving weekend to increase the store capacity.
• They can only add 7 registers at present, as the have only 6 full time and 1 part time employees. However adding 7 registers will also not meet the demand and adding more than 7 registers will require additional employees and additional labor cost.
• The store manager can add capacity by eliminating the payment method by check, as it takes longest processing time and only 5% customers pays by check.
• The surge in demand can be handled by offering online ordering and payments for credit, debit, and check paying customers. The customers will arrive only for the store pick-ups on a different collection