Steve, an Operations Manager at Clan Corp

Multiple Choice

Steve, an operations manager at Clan Corp. is promoted to manage the process defined by the four stages A to D below. This process could be human resource management, marketing, accounting, finance, or engineering process, and Steve is the manager. This is his chance to impress his boss and get promoted again. After three months on the job, Steve realizes something is not right with the process. His employees experience big pile up of work, things take too long to be processed, the opportunity for error is increasing, and the entire process is almost chaotic. Do a process and capacity analysis of this process. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 30 units per hour and each unit must be worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant manager(s) are cross-trained to do both Stages C and D work. The coding specialist(s) do Stage B work.
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-What is the current labor utilization of the coders at Stage B if two coding specialists are currently on duty?

A) Less than 90 percent
B) More than 90% but less than or equal to 95%
C) More than 95% but less than or equal to 100%
D) More than 105 percent