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71
72
Description
Time
(sec)
Immediate
Predecessor(s)
40
None
30
Attach axle
50
Attach agitator
40
25
15
Attach controls
20
D, E
Mount nameplate
18
F, G
Total 244
73
18
15
74
2.
75
Finding a Solution
The minimum number of workstations is 5 and the
cycle time is 60 seconds, so Figure 5 represents
an optimal solution to the problem
D
B
30
20
A
40
40
F
C
25
50
I
G
18
15
Firtilizer Precedence Diagram Solution
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.
76
77
A Line Process
The desired output rate is matched to the
staffing or production plan
Line Cycle Time is the maximum time
allowed for work at each station is
1
c= r
where
c = cycle time in hours
r = desired output rate
78
A Line Process
The theoretical minimum number of
stations is
t
TM = c
where
t =
total time required to
assemble each unit
79
A Line Process
Idle time, efficiency, and balance delay
Idle time = nc t
where
n=
number of stations
t
Efficiency (%) = nc (100)
Balance delay (%) = 100 Efficiency
7 10
Solved Problem 2
A company is setting up an assembly line to produce 192 units
per 8-hour shift. The following table identifies the work
elements, times, and immediate predecessors:
Work Element
Time (sec)
40
80
30
25
20
F
G
H
15
120
145
Immediate Predecessor(s)
None
A
D, E, F
B
B
B
A
G
7 11
Solved Problem 2
a. What is the desired cycle time (in seconds)?
b. What is the theoretical minimum number of stations?
c. Use trial and error to work out a solution, and show your
solution on a precedence diagram.
d. What are the efficiency and balance delay of the solution
found?
SOLUTION
a. Substituting in the cycle-time formula, we get
8 hours
1
c = r = 192 units (3,600 sec/hr) = 150 sec/unit
7 12
Solved Problem 2
b. The sum of the work-element times is 720 seconds, so
t
TM = c =
720 sec/unit
150 sec/unit-station
= 4.8
or 5 stations
7 13
Solved Problem 2
c. The precedence diagram is shown in Figure 7.6. Each row in
the following table shows work elements assigned to each
of the five workstations in the proposed solution.
D
25
Immediate
Predecessor(s)
None
D, E, F
80
20
30
C, I
A
40
Work
Element
15
115
120
H
145
130
7 14
Solved Problem 2
D
25
B
80
20
30
40
Candidate(s)
Choice
Work-Element
Time (sec)
15
G
120
Station
115
Cumulative
Time (sec)
I
130
145
Idle Time
(c= 150 sec)
S1
S2
S3
S4
S5
7 15
Solved Problem 2
D
25
B
80
20
30
40
15
G
H
120
Station
Candidate(s)
Choice
Work-Element
Time (sec)
115
I
130
145
Cumulative
Time (sec)
Idle Time
(c= 150 sec)
40
40
110
80
120
30
D, E, F
25
145
E, F, G
120
120
30
E, F
20
140
10
S3
F, H
145
145
S4
F, I
130
130
20
15
145
30
30
120
115
145
S1
S2
S5
7 16
Solved Problem 2
d. Calculating the efficiency, we get
Efficiency (%) =
720 sec/unit
t
nc (100) = 5(150 sec/unit)
= 96%
Thus, the balance delay is only 4 percent (10096).
7 17
In class - Example
A plant manager needs a design for an assembly line to assembly
a new product that is being introduced. The time requirements and
immediate
predecessors for the
work elements are
as follows:
Work Element
Time (sec)
12
60
36
24
38
C, D
72
B, E
14
72
35
G, H
60
12
F, J
Total =
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Immediate
Predecessor
435
7 18
In class - Example
Draw a precedence diagram, complete I, F, J, and K
Work
Element
Time (sec)
Immediate
Predecessor
12
60
36
24
38
C, D
72
B, E
14
72
35
G, H
60
12
F, J
Total =
435
B
F
E
J
7 19
In class - Example
If the desired output rate is 30 units per hour, what are the cycle
time and theoretical minimum?
1
c= r =
1
(3600) = 120 sec/unit
30
t
435
TM = c =
= 3.6
120
or 4 stations
7 20
In class - Example
Suppose that we are fortunate enough to find a solution with
just four stations. What is the idle time per unit, efficiency, and
the balance delay for this solution?
Idle time = nc t = 4(120) 435 = 45 seconds
Efficiency (%) =
435
t
nc (100) = 480 (100) = 90.6%
7 21
In class - Example
Using trial and error, one possible solution is shown below.
Station
Work
Elements
Assigned
Cumulative Time
Idle Time
(c = 120)
1
2
3
4
5
7 22
In class - Example
Using trial and error, one possible solution is shown below.
Station
Work
Elements
Assigned
Cumulative Time
H, C, A
120
B, D, G
98
22
E, F
110
10
I, J, K
107
13
Idle Time
(c = 120)
7 23
Managerial Considerations
Pacing is the movement of product from
one station to the next
Behavioral factors such as absenteeism,
turnover, and grievances can increase after
installing production lines
The number of models produced
complicates scheduling and necessitates
good communication
Cycle times are dependent on the desired
output rate
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.
7 24
Inventory
Management & the
Economic Order
Quantity (EOQ)
7 25
Lecture today
Why is inventory so bad?
Why hold inventory?
Where to hold inventory?
What are types of inventory to keep?
What are the inventory costs?
How much inventory to keep?
When to order & how much to order?
What do I need to know to make those
decisions?
7 26
Inventory Management
7 27
Inventory Basics
7 28
Inventory Costs
Cost of capital
Obsolescence
Storage
Insurance
Taxes
Security
Theft
Damage
Locating
Measurement
Management & Labor
7 29
7 30
Inventory at WAL-MART
Making sure the shelves are stocked with tens of
thousands of items at their 5,379 stores in 10 countries is
no small matter for inventory managers at Wal-Mart.
Knowing what is in stock, in what quantity, and where it is
being held, is critical to effective inventory management.
With inventories in excess of $29 billion, Wal-Mart is
aware of the benefits from improved inventory
management.
They know that effective inventory management must
include the entire supply chain.
The firm is implementing radio frequency identification
(RFID) technology in its supply chain.
7 31
7 32
raw materials
WIP
finished goods
7 33
7 34
Holding costs
Maintenance
and Handling
Taxes
Obsolescence
Stock-outs costs
Lost
Backorders
7 35
7 37
ABC Analysis
100
90
Class C
Class B
80 Class A
70
60
50
40
30
20
10
0
10
20
30
40
50
60
70
80
90 100
Percentage of items
7 39
7 41
7 42
Cycle-Inventory Levels
Receive
order
Inventory depletion
(demand rate)
Average
cycle
inventory
1 cycle
Time
7 43
Holding cost =
Ordering cost =
Q
( H)
2
D
( S)
Q
7 45
C=
Q
D
936
390
(H) +
(S) =
(15) +
(45)
2
Q
390
2
7 46
3000
Total cost
2000
Holding cost
1000
Ordering cost
Lowest
0
cost
|
50
Best Q (EOQ)
|
100
|
150
|
200
|
250
|
300
|
350
|
400
Current
Q
7 47
2DS
H
D = 936 units
H = $15
S = $45
C=
Q
D
(H) +
(S)
2
Q
D = annual demand
S = ordering or setup costs per lot
H = holding costs per unit
EOQ =
C=
C = $1,124.10
7 48
EOQ
D
In Class Example
7 50
In Class Example
7 51
7 52
In Class Example
continued
7 53
7 54