Period Highlight: 1

Kristen Cookie Co.

ACTIVITY

PLAN
START

PLAN
DURATION

ACTUAL
START

ACTUAL
PERCENT
DURATION COMPLETE

24

24

Washing & mixing

Spooning
Pre- Heating
Baking
Cooling
Packing
Payment

10

10

18

18

23

23

25

25

100%
100%
100%
100%
100%
100%
100%

order 2
Washing & mixing
Spooning
Pre- Heating
Baking
Cooling
Packing
Payment

26

26

14

14

18

18

19

19

27

27

32

32

34

34

100%
100%
100%
100%
100%
100%
100%

order 3
Washing & mixing
Spooning
Pre- Heating
Baking
Cooling
Packing
Payment

16

28

16

28

16

16

21

21

27

27

28

28

36

36

41
43

2
1

41
43

2
1

100%
100%
100%
100%
100%
100%
100%

Actual

% Complete

Actual (beyond plan)

% Complete (beyond plan)

PERIODS

1
order 1

Plan

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Please refer gantt chart for this in sheet Q1(gantt chart)

1 Thruput time
2 Cycle time

24 mins
9 mins

Equation
Thruput time for 1st batch + cycle time * no. of batches
3 24
= 4*60
x= +
249x
+1
= 25 batches
25 batches of cookies we will produced in 4 hours shift

1
order 1

Washing & mixing

Spooning
Pre- Heating
Baking
Cooling
Packing
Payment
order 2
Washing & mixing
Spooning
Pre- Heating
Baking
Cooling
Packing
Payment
order 3
Washing & mixing
Spooning
Pre- Heating
Baking
Cooling
Packing
Payment

9 10 11 12 13 14 15 16 17 18 19

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

46 47 48 49 50

Cutting
Thruput time
Cycle time
WIP

---->

Bending

45 mins
3 mins
=Thruput time/Cycle time
15 units

---->

Rivetting

Given
Alternative
Make all components and assemble in-house
1
2 Buy components and assemble in house
Buy the subassemblies complete, from another
3 manufacturer

Demand

Total cost = Fixed cost + Variable cost

So equation for
In-house Vs Buy & Assemble
Buy & Assemble Vs Out source
Out source Vs In-house

0
10000
11000
12000
13000
14000
15000

Fixed cost

Variable cost
$345,000

$30

$155,000

$45

$76

10000 per annum

12000 per annum

345000 + 30x = 155000 +45x

155000 + 45y = 0 + 76y
345000 + 30z = 0 + 76z
In-house
$345,000
$645,000
$675,000
$705,000
$735,000
$765,000
$795,000

x
y
z

12666.67 units
5000 units
7500 units

Buy & Assemble

outsource
$155,000
0
$605,000
$760,000
$650,000
$836,000
$695,000
$912,000
$740,000
$988,000
$785,000 $1,064,000
$830,000 $1,140,000

$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0

2000

Chart Title

200,000

000,000

800,000

600,000

400,000

200,000
$0

2000

4000
In-house

6000

8000

Buy & Assemble

10000

12000

14000

outsource

1st BEP

2nd BEP

3rd BEP

Buy&
Assemble
Vs
Outsource

In-house Vs
outsource

In-house Vs
Buy&
Assemble

16000

Please refer gantt chart for this in sheet Q3(gantt chart)

When we are making 1st frame then thruput time will be 15mins since there will be no WIP
Answer.
1 Thruput time
2 Cycle time

15 mins
6 mins

3 Time required for 120 frames 15mins+6*119units

729 mins
12.15 hours
4 WIP

=Thruput time/ cycle time

2.5 units
3 units
rounded of

mins since there will be no WIP

Steel Frame
ACTIVITY

PLAN
START

PLAN
ACTUAL
DURATION START

Period Highlight 1

ACTUAL
PERCENT
DURATION COMPLETE

15

15

12

12

17

17

10

10

12

12

18

18

12

17

12

17

12

12

16

16

18

18

24

24

100%
100%
100%
100%
100%
100%
0%
100%
100%
100%
100%
0%
100%
100%

Actual

% Complete

Actual (beyond plan)

% Complete (beyond plan)

PERIODS

Frame1
Cutting
Welding
Finishing
Frame 2
Cutting
Waiting WIP
Welding
Finishing
Frame 3
Cutting
Waiting WIP
Welding
Finishing

Plan

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

cycle service level

z
Demand
St. deviation weekly
Lead time
current stock
Backorders
scheduled received
order placed
st. deviation of lead time

95%
1.65
2870
12.5
2
27
0
0
4
0

St. deviation demand during

lead time
= sq root(( av lead time* st. deviation of av.demand^2) +
312.5
17.6776695297

Safety stock
Av. demand monthly
Re-order point

Target inventory

inventory to be ordered

Suggestion

= Z * st. deviation demand during lead time

29.1681547239
55.1923076923
=av demand * lead time + safety stock
139.5527701086
140
= D*(LT+P) + z*st.deviation*sq root(L+P)
381.6745720988
382
355

kits per annum

kits
weeks
kits

weeks

tion of av.demand^2) + (av. demand^2)(st. deviation of lead time ^2))

take sq root

lead time
units
units
units
units

units
units

for 2 weeks

Truck load
Lead time
Average Demand
St. deviation of demand

720
1
107
14.6

Standard deviation demand

during lead time
=st. deviation of demand * sq root (lead time)
14.6
z
Safety stock

1.65
= Z * st. deviation demand during lead time
24.09
24

Reorder point

=av demand * lead time + safety stock

131

boxes
week
boxes/per week
boxes

boxes
assuming 95% service level

boxes
boxes
boxes

rounded of