Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. Where in the process is the bottleneck and what is its implied utilization

The bottleneck is in the use of Resource X by Customer B.

The implied utilization of Resource X by Customer B = 125%.

Explanation:

a) Data and Calculations:

Time in minutes spent in   Resource X     Resource Y

Customer A                               2 m                 5 m

Customer B                               5 m                 2 m

                                           Customer A     Customer B

Demand per hour                     10                    15

Total usage of resources   Resource X     Resource Y   Total Time

Customer A                            20 m               50 m                70 m

Customer B                            75 m               30 m               105 m

Resource X by Customer B = demand per hour / capacity per hour

= 75/60

= 125%