A product requires four steps to complete Step 1 takes 8 min
A product requires four steps to complete.
 
 Step 1 takes 8 minutes
 Step 2 takes 6 minutes
 Step 3 takes 2 minutes
 Step 4 takes 10 minutes
 
 20% of all units produced requires rework. For reworking, they have to revisit steps 3 and 4. Each step is processed by one employee. Rework takes the same processing times as the first pass and always fixes the problem. What is the capacity of the process in units per minute?
Solution
The capacity without rework -
(60/10) = 6 per hour (note that the fourth step is the bottleneck) = 0.10 per minute
Then 20% of them are rejected i.e. 4.8 parts per hour are OK. The remaining 1.2 parts will take 12 min of time. So, in 72 minutes, 6 parts are finally getting out.
The final capacity = 6 / (60+12)
= 0.0833 per minute.
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