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Management accounting 2022

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Question:

What are some specific things we can do to deal with bottlenecks?

Author: Hjalmer Pedersen



Answer:

Specific things one can do to deal with bottlenecks: 1. Eliminate idle time, reduce set-up/processing time at the bottleneck operation 2. Shift products from bottleneck operation, if possible (to other operations, outsourcing), to increase capacity of the bottleneck operation. 3. Improve quality of products manufactured at the bottleneck operation.


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