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Data
• No. of shovels = 3
• All three shovels can operate at the same time
• Time taken by the each shovel to load the truck = 10 minutes
• No. of crushing lines = 3
• Crushing lines operational at a given time = 2
• Maximum output from each crusher = 520 tonnes / hr
• The ore concentrator can process 1200 tonnes/hr
• Total loading time for loading a truck = 10 minutes
• Time for a trip from pit to crusher = 15 minutes
• Time for unloading at the crusher = 10 minutes
• Time for the return trip = 10 minutes
• Each truck can carry 80 tonnes of ore
• Operation time for company = 24 hours a day, 7 days a week
• Production of the company = 24,000 tonnes per day
a) Determine the minimum no of trucks required
Total Cycle time for one truck to pick up ore from shovels in a day
One cycle time
Therefore
1440 = 32 Trips
45
= 80 x 32 = 2560 tonnes
= 24,000 / 2560
= 9.3750 ≈ 10 trucks
b) Percent Utilization
Each shovel can load a truck in 10 minutes, and each truck can carry 80 tonnes of load
therefore each shovel can load 80 tonnes in 10 minutes.
Thus, in one hour 1 Shovel can load 6 times 80 tonnes = 480 tonnes (6 * 80).
Similarly
Every 45 minutes a truck completes one whole cycle from the quarry to the pit.
Shovels = 69.44%
Trucks = 93.75%
Crushers = 96.15%
Concentrator = 83.33%
c) Bottleneck Operation.
The evident bottleneck is the crusher as it has the highest percent utilization recorded as
96.15%.
d) Recommendation
To relieve the bottleneck the system capacity can be increased by repairing the third
crushing line. If all the crushing lines are operated the crusher % utilization can be
reduced. Let us see how this will be done.
Maximum output from all three crushers in one hour = 3 x 520 = 1560 tonnes
As we can see the percent utilization will be reduced by around 32% if all three crushing
lines are operational.
Question 2- Line Balancing
a) Precedence Diagram
A11
D11
G7
B7
C12 E5 F13
H9 I 15
No. of workstations = (Total output x total task time) / total operations time
d) Line Balancing
e) Idle Time
Therefore,
Work station 1:
Workstation 2:
Workstation 3:
Workstation 4:
1 2 3 4 5
1.0050 0.9963 1.0115 0.9875 1.0085
1.0022 0.9995 1.0003 0.9930 0.9803
0.9930 1.0210 0.9915 1.0100 0.9935
0.9895 1.0005 1.0055 1.0003 1.0215
b) 3σ control limits
c) Control Chart
Sample Χ
1 0.9974
2 1.0043
3 1.0022
4 0.9977
5 1.0009
1.0050
1.0043
1.0040
1.0030
UCL
X (mean)
1.0023 1.0022
1.0020
1.0010 1.0009
1.0000
0.9990
0.9980 LCL
0.9977 0.9977
0.9974
0.9970
0 1 2 3 4 5
Sample
The chart shows that X of sample 1 and sample 2 point outside the control limits. The
mean of sample 1 (X = 0.9974) is out of control criterion of LCL = 0.09977 and mean of
sample 2 (X = 1.0043) is out of control criterion of UCL which is equal to 1.0023.
The total cycle time is calculated as 2.45 min and worker will work (8 hours) 480 min /
per day.
Therefore, number of units produced per day = 480 min / 2.45 min
b) Reduction time
= 2.13 min
= 0.23 min
= 0.48 min
8 Total cycle time = 2.45 Total cycle time = 2.45 Total cycle time = 2.45
If the bonus of 30% is to be paid, items must be processed 100 / 130 of the standard time
(2.45 min).
= 1.88 min
= -0.02
A2 H4 J3
critical path
D4 G7 L6
B4 E1 I6 K5
If the activities outside the critical path getting slow down (within limits), total
project time does not change. Similarly, if the manager found that equipment was
causing activity F to be delayed an extra two weeks, it would affect to the other
schedule activity and target completion time of the whole project. It is because
activity G still will take longer time to be complete than activity F with extra 2 weeks
in order to continue to the next activity, that is H. Therefore the manager should not
take any actions against activity F.
Data
D= annual demand in units for inventory item = 40x52= 2080 units
(a) E.O.Q =
2x D x S
H
= 2 x 2080 x $10
$4.60
= 95 units
= 2080 units
95 units
= 2080/95*10 + 95/2*4.6
= 218.94 + 218.5
= $437.44
= 2080/100*10 + 100/2*4.6
= 208 + 230
= $438
(e) The clerk’s policy of adopting the policy of ordering through EOQ will be
better because the total cost is with EOQ is slightly lower than total cost
with lots of 100. The holding cost through EOQ is also lower as compared
to that of lots of 100 and is helpful for companies which hold and stock
larger inventories for their operations. The EOQ model also gives
reasonable answers with better accuracy even when there is variation in
variables such as setup costs, holding costs, demand or even the EOQ
while calculating the total cost.