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ReviewQuestionsSession2

Afourstageprocess
Theprocessingtimesforthemachinesshowninthefourstageprocessbelowareasfollows(in
minutes):W1:9,W2:9,M1:6,D1:5,G1:8andG2:12.

G1
W1

8min
9min

D1
M1

5min
6 min
F1
G2
W2

12min
9min

(a)WhatistheminimumTT,i.e.,ifacustomerrequiresarushorderhowfastcanyoudeliverit?
(b)Whatisthehourlycapacityforeachstage?
(c)Identifythebottleneckstageandtheprocesscapacity.
(d)Supposeyoucanaddonlyonemachineinparallelatthebottleneckstage.Amachinewithhigher
capacitycostsmore.Youwanttobuytheleastexpensivemachine.Whatshouldbethecycletime
forthenewmachinesothatyouincreasetheprocesscapacityasmuchaspossible?

LuisPoisson
LuisPoissonisaParisbasedmanufacturerofluxuryleatherbags.Themanufacturingprocessfor
theirnewflagshipproductiscomposedof5fullyautomatedstations,asillustratedinfigure1below.
Thetheoreticalprocessingtimes(inminutes)forallthemachinesusedineachofthe5stationsare
alsoreportedinthefigure.

Figure 1: Luis Poissons manufacturing process

1. WhatistheaverageThroughputRateoftheprocess(inunits/hour)?
2. WhatistheMinimumThroughputTime(inminutes)?
3. Whichstationistheprocessbottleneck?

Eric&Old
YouarepartoftheoperationsmanagementteamatEric&Old,amajorconsultingcompany.
AsafirstassignmentyourgroupisbroughtintohelpRodiimprovetheircustomerresponsetimesto
theirnewcustomersintheautomobileindustry.Rodimanufacturescomponentsforairplanesand
motorvehicles.Untilnow,theyhavemostlyworkedinthedefensesector,wherecustomersare
moreconcernedwithtechnologyandqualitythanwithresponsetime.Inthenewenvironment
responsetimeandproductioncostaremuchmoreimportantandhavebecomeakeypriorityto
them.
Rodisproductionsystemisorganizedasamaketoorderserialproductionline.Becauseofthe
variabilityinthetypesandquantitiesofproductsorderedbytheircustomersandbecausesetups
areoftenrequiredbetweendifferenttypesofproductstheydonotutilizeanassemblyline.Instead
theyproduceinbatchesthataretriggeredbycustomerorders.
Onyourfirstvisit,themanagersexplainthatinordertocontrolcosttheyhavetriedtoincrease
theutilizationratesofsomeoftheirequipments.Specifically,theynoticedthatoneofthe
workstationsneartheendoftheproductionlinehadonly60%utilization.Theyfeltitmaybeoneof
theupstreamstations(onethatiscurrentlyutilizedbymanydifferenttypesofjobs)thatis
interferingwiththeutilizationrateofthismachine.Thisupstreamworkstation,infact,causesmany
problemsattheirplant,oneofwhichisthatovertimeisfrequentlyscheduledonweekendsto
reducethenumbersofjobswaitinginfronttoitforprocessing.
Tomaximizeutilizationatthedownstreammachine,theyhavedecidedtomakesurethatjobs
destinedfortheunderutilizeddownstreamworkstationwouldhavepriorityatthisupstream
station.Theywouldevenbreaksetupsontheupstreammachinewhenthedownstreamworkstation
wasindangerofrunningoutofwork.
Asaconsultantwhatdoyoutellthemabouttheircurrentresponsetotheproblemsfaced?Whatis
theimpactofthenewpolicyonthedownstreamutilizationrate?Whatistheimpactonthe
upstreamutilizationrate?

Itwillimprovethesituation Itwillhavenoeffect
Itwillworsenthesituation

Why?

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