Machine Utilization at

Krishna Ltd.

Submitted By:Roll No: 1401061 to 1401080

PGDIE 44th
SECTION- B

OBJECTIVE OF STUDY:
1. Evaluation of current machine utilization and improvement

2. Future capacity requirements (In view of increase in production)

3. Measures for 2 month stock

Question: 01
Objectives of the study were met by the
consultant, i.e. (i) The current M/C
utilization, (ii) Improvement suggestions,
(iii) Suggestion for future capacity
requirements & 2 month stock, All are
addressed.
However the study DOES NOT consider
some of the important aspects*.
* Same will be discussed in next sections.

Question: 02
(Improvement of Shop Supervision)
Provision can be made, so that all lines receive equal supervision.

(With due consideration to most underutilized line)

Dedicated supervision for each area.
Surprise/Periodic supervision by shop in-charge
Whether supervisors are overloaded ? Needs to be analyzed.
Only improved supervision may not increase the machine utilization.
Human factors for operators, such as motivation etc. need to be
analyzed.

Question: 02
(Improvement of Shop Supervision)
Shop
Supervision

Study

NO

Adequate ?

YES

YES

Higher level
involvement needed.
No. of supervisor
needs to be increased

Study of
probable
reasons

Dedicated
supervisor for
each area ?
NO

Target to be given
to supervisors
related to m/c
utilization

Adequate no. of
supervisor as per
standard ?
YES

NO
YES

Area is too large

for the supervisor
to handle ?

Proper
training to
be given

YES

Supervisor busy
with other work ?

NO
NO

NO

Departmental
supervision needed

YES

Supervisor s are
excessive friendly
with operators ?

Question: 03
(Weakness in work sampling study)
Individual machine wise study was not done. Grouped machines were

studied. Which does not give a clear picture about the individual
machine utilization.
Idle due to operator has been given as one of the highest

contributing factor for machine idle time, but break up for the same
was not given.
Standards for machine utilization of similar shops were not
considered.

Question: 04
(Capacity Determination: Option 01)
Annual Demand 2 Month Stock

Group I

Group II

Speedometers

203000

33833.33333

Pressure Gauges

212700

35450

24.4

864.98

Temperature Gauges

118560

19760

20000

3333.333333

4500

750

7.1

300000

50000

Hub drive

10000

Warning lamp

82560

Tachographs/ Speed indicators

Faremeters
Cables

62 2097.67

Hours / Week
No. of Machines
OT/Machine/Week

Group IV

2233

82 2774.33

91 3225.95

17.3 613.285

85

1679.6

151 503.333

150

500

133.7 445.667

5.325

67

50.25

66

3300

350

1666.666667

42.6

71

13760

15

206.4

Total

66

Group III

11.2 18.6667
5.3

72.928

11.7

26.4

8.5

167.96

21.8 72.6667

8.775

44

13.6 22.6667

0
3272.78 Total

5.1

70.176

7048.71 Total

8130.39 Total

946.754

135.552

156.354

62.938

18.2068

10

13

13.5552

12.0272

10.4897

6.06894

Question: 04
(Capacity Determination: Option 02)
Introduction of 3rd Shift
Assumptions:
Working Hours = 8 Hrs
Break = 1 Hr (Considering Night Shift)
No. of
working
days

Daily
working
Hrs

Total
working
Hrs

300

2100

Extra working Hours

Group 1 Group 2 Group 3 Group 4
10

13

21000

27300

12600

6300

Total No. of Machines required

Target time for 2 month inventory (In months)
Group

Machine Hrs Required

Available M/C Hrs/Year/Machine

10

12

7048.705

2100

20

10

II

8130.394667

2100

23

12

III

3272.775

2100

IV

946.7543333

2100

55

28

18

14

11

10

28

18

14

11

10

1344000 1296000

1344000

TOTAL MACHINES

TOTAL OPERATORS
WAGES (400/Day) Rupees

NOT
FEASIBLE

1320000 1440000

Question: 04
(Capacity Determination: Option 02)
Introduction of 3rd Shift
Comparison of OT and 3rd Shift
Month Required
4
6
8
10
12
Over time

GR 1
10
7
5
4
3
7048.7

GR 2
12
8
6
5
4
8130.4

GR 3
5
3
2
2
2
3272.8

GR 4
1
1
1
1
1
946.75

Total Cost
1344000
1296000
1344000
1320000
1440000

OT Cost (2 times of
Normal wage)

1939862.9

Annual Demand
ANNUAL DEMAND CALCULATION

Annual Demand

Group I

Pressure Gauges

212700

Temperature Gauges

118560

20000

151

3020

150

3000

133.7

2674

4500

7.1

31.95

67

301.5

11.7

52.65

300000

66

19800

2100

Hub drive

10000

42.6

426

11.2

112

Warning lamp

82560

15

1238.4

Cables

24.4 5189.88

Total
Total Available Hrs/Mc/Yr
No. of Machines
OT/Machine/Week
Allowance
Available Time
Shortage

42292.2 Total

66

13398

82

Group IV

203000

Faremeters

12586

Group III

Speedometers

Tachographs/ Speed indicators

62

Group II

16646

91 19355.7

17.3 3679.71

85 10077.6

8.5 1007.76

5.3 437.568
48782.4 Total

26.4

264
0
19636.7 Total

21.8

13.6

436

136

5.1 421.056
5680.53

4500

4500

4500

4500

10

13

45000

58500

27000

13500

0.16

0.22

0.2

0.15

37800

45630

21600

11475

4492.23

3152.37

-1963.4

-5794.5

Total cost comparison (Considering all demand)

Total No. of Machines required
Target time for 2 month inventory (In months)

Group
I
II
III
IV

Machine Hrs
Shortage for
Net M/C hrs
Required for 2
Available M/C Hrs/Year/Machine
2
4
6
8
annual demand
required
month stock
7049
4492
11541
2100
33
16
11
8
8130
3152
11283
2100
32
16
11
8
3273
-1963
1309
2100
4
2
1
1
947
-5794
-4848
2100
0
0
0
0
TOTAL MACHINES
69
34
23
17
TOTAL OPERATORS
17
NOT FEASIBLE NOT FEASIBLE NOT FEASIBLE
WAGES (400/Day) Rupees
1632000

Month
Required
4
6
8
10
12

GR 1
0
0
5
4
3
11541

GR 2
0
0
6
5
4
11282

GR 3
0
0
2
2
2
1309

GR 4

Total Cost

0
0
1
1
1

NA
NA
1632000
1680000
1584000
0

OT Cost (2 times
of Normal wage)
2413200
2413200
2413200
2403200
2413200

10

12

7
5
6
5
1
1
0
0
14
11
14
11
1680000 1584000

Question: 05
Scheduling
Backward scheduling
Determining a production schedule by working backwards from
the due date (or time) to the start date (or time).
Simultaneously computing the materials and time required at
every operation or stage.
Different heuristics like branch and bound technique can be used.
As per the target date set by the sales departments, the job

priorities will be set wrt the manufacturing lead time and the
penalties associated with it.

Question: 06
Trivial and Useful Suggestion
Following recommendations were found to be trivial:

Shop supervision to be improved. (Because, strict supervision may not

always contribute to higher utilization. And can cause union problem.)

Gear up maintenance effort. (Instead of increasing maintenance activities,

change the maintenance system. Can deploy TPM, preventive maintenance.)

Piece rate incentive scheme. (It is not considered as a fair method as it is

directly output depended. All the jobs do not have equal cycle time. Better
alternatives are available like a) Halsey plan b) Rowan plan c) Emerson plan)

Useful solutions:1. Dedicated PPC department.

2. Maintaining buffer stock.
3. Use of lead time cards.