Professional Documents
Culture Documents
A Brief Overview
1) Board Stuffing
Step 1 components are
mounted onto circuit
boards
2) Testing
Steps 2 & 4 product is
tested (no failed tests)
3) Tuning
Step 3 components are
fine tuned to receive
satellite signals
Capacity Costs
Station #1
BOARD STUFFING MACHINES
$90,000 each
Station #2
TESTING MACHINES
$80,000 each
Station #3
TUNING MACHINES
$100,000 each
Resale value for any machine
$10,000 each
Factory Process
Every step has its own process time
= lot setup time + unit time * lot
size
Littlefield measures average daily
utilization rates at each station
Queues hold waiting jobs
The factory holds a maximum WIP of
100 orders
lead time = process time + wait
time
Contract Pricing
< 24 hours =
$1000
> 72 hours = zero
* Factory must still
purchase inventory
for orders earning
zero revenue !
Contract Pricing
Three contracts to
< 24
hours =
choose
from
$1000lead time = 7
1) quoted
days,
max
lead=
time
=
> 72
hours
zero
14 days, price = $750
2) quoted lead time = 1
*day,
Factory
must
still=
max lead
time
3 purchase
days, priceinventory
= $1000
(pictured
here)
for orders
earning
3) quoted
lead time != 12
zero
revenue
An example using Contract 2
Team Registration
http://lab.responsive.net/lt/yourpath/start.html
yourcode
Click OK
example
Click Submit
example
example
Hannah Lisker
Charlie Wong
Shane OBrien
Click Submit
example
http://lab.responsive.net/lt/yourpath/entry.html
Click
OK
Download Data
Click download button
Save to desktop
Open with MS Excel or
another spreadsheet
application
Copy > Paste data
columns to a master
worksheet
Index by Day
Key Hints
Forecasts estimate future outcomes
They are not known for precision
A prediction interval should be considered
Good Luck!