Value

Production time available

Lost hrs (startup effect)
Net Available Time
Time for 1 batch of ice cream
Set up time
Actual production
Number of batches
Accuracy (3 out of 4 are good)
TJ1. Number of Good Batches
Jerry goes for holiday on every other Friday
Hence, in two weeks one Friday is holiday
Time per day
Productive time per working day
Total available time in 2 weeks
Total time in production in 2 weeks
TJ2. OEE

12
1
11
80
20
60
8.25
0.75
6.19

12
360
10080
4680
46%
availability
0.85119048

Unit
hours
hours
hours
minutes
minutes
minutes
nos/day
nos/day

6 nos/day

hours
minutes
minutes
minutes

productivty efficiency
0.75
0.75 0.47879464
nos/day

Ans.

Value
Start time
8:00 AM
End time
6:00 PM
Total hours per day
10
Hours lost per day
2
Working hours per day
8
Time booked for 1 appointment
30
Number of appointments possible
16
Average time taken per appointment
23
Booking % (busy schedule)
75%
Fraction of patients not showing up
1/6
DRP1. Number of patients on a typical working da
10
Maximum availability in a year
Vacation days in a year
DRP2. OPE

260
30
33.91%

0.70769231

Unit

hours
hours
hours
minutes
nos
minutes

nos
days
days

0.76666667
0.33910256

0.625

Given:

Total seats in restaurant

Operational hours per evening
Average time per guest
1. Seating time
2. Food serving time
3. Eating time
4. Handle check out
Clean table and ready for next
Average spending per customer

Value
50
4
50
5
10
30
5
10
20

No. of waiters
No. of kitchen employees
Salary per employee per evening
Average Material costs
1. Food
2. Beverages
Fixed cost: Rent
Fixed cost: O/H

10
10
90
5.5
4.5
1
500
500

Open days

365

Tied up capital
Solution:
PP1. No. of guests that can be served in an eveni
Revenue per day
Costs per day
Profits per day
PP2. ROIC
New cleaning time
New total time
New no. of guests that can be served per evening
New Revenue per day
New Costs per day
New Profits per day
PP3. New ROIC

200,000

200
4000
3900
100
18.25%
5
55
218
4360
3999
361
65.88%

Unit
nos
hours
minutes
minutes
minutes
minutes
minutes
minutes
$
nos
nos
$/day
$/day
$/day
$/day
$ /day
$ /day
days
S

nos
$
$
$

minutes
minutes
nos
$
$
$

Number of identical hotels

Operating days in year

Value
10
365

Land purchase capital

Build and purchase expense

200
100

Number of rooms per hotel

Average price per night

150
180

Operating cost per hotel

Number of employees per hotel
Average employee salary per year

1
60
50,000

hotel occupancy rate

60%

Total revenue per year

Total costs per year
Total profit per year

59,130,000
40,000,000
19,130,000

MH1. ROIC

6.38%

New number of employees

New occupancy rate

50
50%

New total revenue per year

New total costs per year
Total profit per year

49,275,000
35,000,000
14,275,000

MH2. New ROIC

4.76%

Unit
nos
days
$M
$M
nos
$ per night
$M
nos
$

$
$
$

$
$
$

MACHINE PACED LINE

Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Worker
Worker
Worker
Worker

1
2
3
4

Bottleneck
ATW1. Capacity of line
New allocation 1
Worker 1
Worker 2
Worker 3
Worker 4
Bottleneck
ATW2. New Capacity of line

New allocation 2
Worker 1
Worker 2
Worker 3
Worker 4
Bottleneck
ATW3. New Capacity of line

Value
30
25
35
40
15
30
30
25
75
45
Worker 3
48

55
35
40
45
Worker 1
65.45

realigning gives the same co

45
55
35
40
Worker 2
65.45

Demand
ATW4. Takt Time

50
72

Labor content
ATW5. Target manpower

175
3

Unit
seconds
seconds
seconds
seconds
seconds
seconds
seconds
seconds
seconds
seconds

Worker
Worker
Worker
Worker

1
2
3
4

Worker
Worker
Worker
Worker

1
2
3
4

units/hour

seconds
seconds
seconds
seconds

units/hour

gives the same configuration as in previous case

Worker 1
seconds
Worker 2
seconds
Worker 3
seconds
Worker 4
seconds

units/hour
unit/hour
seconds/unit
seconds/unit