Question

OVERLOAD CO makes gear module which includes two components: Component Lambda and Component Kappa. These components are produced in a Production resource and then assembled together in Assembly. A typical production cycle will include 400 units of Component Lambda and 100 units of Component Kappa and would involve two setups to switch between the two types of components. Each setup takes 45 minutes. Suppose that Production of these components has 1 worker and is the bottleneck resource in the process. Each Component Lambda takes 120 seconds to make and each component Kappa takes 420 seconds to make. Assume that there is sufficient demand and the process is capacity-constrained. Further assume that the Production resources is the bottleneck resource. You are further told that: Number of units of Component Lambda needed to make each gear module = 4 Number of units of Component Kappa needed to make each gear module = 1

Answer 1

Ans

1. The process capacity per hour is equal to the botteneck capacity per hour. So we need to determine the botteneck in the system. PLease find below the computaion of the bottleneck and reasoning for the same

	production per min adjusted for setup time	capacity of station in units per hour	capacity as per bottle neck	Average inventory per hour
G (1)	24	2.5	1.3785	0	So worker at assembly station produces 2.5 G per hour. Zro setup time
Lambda (4)	10.88888889	5.514705882	5.514	0	1 product requires 2 mins and average setup time of (400/45) mins
Kappa (1)	9.222222222	6.506024096	1.3785	5.1275241

The excel formulas are given below:

	production per min adjusted for setup time	capacity of station in units per hour	capacity as per bottle neck	Average inventory per hour
G (1)	24	=60/24	=G9/4	=0	So worker at assembly station produces 2.5 G per hour. Zro setup time
Lambda (4)	=2+400/45	=60/10.88	5.514	=0	1 product requires 2 mins and average setup time of (400/45) mins
Kappa (1)	=7+100/45	=60/E11	1.3785	=F11-G11

So Lambda is the bottleneck as 2.5*4=10 lambda is required per hour while capacity of station is to produce 5.514 per hour only.

Ans

m. Process Capacity= 1.375 G per hour

n.Flow rate= 1.375 G per hour as there is no demand constrain.

o. Average inventory of lambda= 0 per hour

p. Average inventory of kapp= 5.13 per hour.