Review the attached Doughnut Case Study.

Answer the following questions. Ensure you show all of your work for the calculations and ensure
your answer all capacity questions in doughnuts per day.
1. Calculate the capacities of each step of the doughnut-making process. What is the bottleneck
of the process? What is the overall capacity of the process?
2. How would your answers in question 1 change if the batch size was doubled to 16 lbs? You
may assume that the cycle time and setup times for each step do not change due to the change
in batch size.
3. If Johnson decides to keep the batch size at 8 lb and instead focus on reducing setup time for
the extrusion process, by how much must he reduce the setup time in order to meet his demand?
4. If Johnson decides to invest in the 6 cutters, what setup time would be needed for Johnson to
meet demand with 6 cutters using the standard 8 lb batch?
5. What do you recommend Johnson do?
You will need to use the following equation to answer questions 1-3
Time available
------------------------ = Capacity
Production time per unit
Here is a hint for to get you started on the capacity for each station.
480 min/day 8 pounds        16 ounces        1 doughnut
--------------------- x -------------- x ------------------ x -------------------  = Capacity for Batching
2 minutes/batch batch             pound             2 ounces
= 15,360 doughnuts / day
Below is an example of how to calculate the cycle time
8 lbs/batch x 16 ozs/lb x 1 doughnut/2 ounces
------------------------------------------------------------ +1.5min/batch = Cycle Time for Extrusion
18 doughnuts/min per extruder x 3 extruders
Cycle Time for Extrusion = 2.7 min/batch
For question 3 and 4. In order to solve this problem, you will use the formula for capacity listed
above, but this time you will set the capacity equal to the demand and solve for the cycle time, C,
which will then allow you to solve for the setup time, S. You are given that the demand is 1,100
dozen doughnuts per day, which is the equivalent of 13,200 doughnuts per day.
Time available
--------------------------- = Extrusion Capacity
Extrusion Cycle Time
= 480 min/day   X 8 lbs/batch X 16 oz/lbx 1 doughnut/2 oz
--------------------
C minutes/batch
S minutes + 8 lbs/batch X 16 oz/lb X 1 doughnut/2 oz = C minutes
-------------- ------------------------------------------------------- ------------------- = Extrusion Cycle Time
batch 18 doughnuts/min per extruder X 3 extruders batch