A single processing machine makes two components, A and B, which are packaged together as the final product (each product sold contains one A and one B). The processor can make only one component at a time. There is a setup time when switching from A to B and back.

The current arrangement is for the machine to make 100 units of A, then 100 units of B, then 100 units of A, and so forth, where the setup and run times for each component are:

Component Set up time Run time per unit
A 4 minutes .3 minute
B 6 minutes .1 minute

Assume the packaging of the two components is totally automated and so quick that you can ignore it.

What is the capacity of the process in units/hour?

.3(100) + 4 + .1(100) + 6 = 34 + 16 = 50 minutes to run one cycle. The next cycle will start with 10 minutes remaining in the hour, leaving 20 minutes remaining in the second hour, and so on.

Capacity > 200 units/hour