Professional Documents
Culture Documents
IND 303
Work Measurement Analysis and Design
Dr. K. Donald Tham
November 28, 2011
A Manufacturing and
Feasibility Study
Table of Contents
1.0 Executive Summary
2.0 Introduction
4.2.8 Assembly Group 8 (Assembly of Motor and Upper Body and Lower Body)
Cost of tools
Cost of fixtures
Cost of conveyors
Cost of pallets
Total cost
Bibliography
1.0 Executive Summary
Industrial engineers design systems by considering both the procedures for planning, measuring and
controlling all activities within the organization, and the physical workplace where human activity
occurs. This case study describes and analyzes the specifics of product design including reverse
engineering, human factors, work measurement, simultaneous engineering and method study. These
specific factors of product design along with production planning and inventory control allow for the
design of a plant layout including all workstations, administrative offices, shipping and receiving docks,
and storage facilities. A cost analysis is conducted to determine the feasibility of the manufacturing
process and the suggested sales price to allow for profit. Based on the cost analysis, it was found that
the production of this tower fan is feasible and should be distributed and sold. Several other
conclusions were drawn and recommendations were made to improve the assembly operations.
2.0 Introduction
Global Manufacturing Inc. has decided to carry out a feasibility study for a Honeywell HY-145C 40”
Tower Fan model. As a start, they have identified the suppliers that can provide us with the parts that
will be required to carry out the assembly of the tower fan.
This report will break down the entire assembly and packaging processes after the required parts as per
the bill of materials are received from the suppliers. From the bill of materials, a product structure tree
and exploded view will be developed. Proper workplace layouts will be determined in order to meet
ergonomic and human factors requirements while promoting the best motion economy possible.
Following this, proper job instructions for each assembly station as well as fair and equitable time
standards will be established using MTM-1 analysis and taking into account simultaneous motions
where possible. Once the products are assembled and packaged, they will be shipped to our three
customers – Sears, Canadian Tire and Wal-Mart. Cost-analysis methods and operations management will
be used to determine the most efficient and effective ways to go about workers’ regular and overtime
scheduling, warehouse capacity needed and delivery to ensure customer demands are met in regards to
both quality and quantity.
In order to ensure all of these requirements were met, effective project management techniques were
necessary. This included a Gantt chart which was followed as much as possible. However, due to
complications such as other term projects, midterms and group issues the deadline was postponed a
week past the original due date. The MTM-1 analysis was delayed slightly causing all of the tasks
following it to be delayed as well as nothing else could be done until it was complete. With some
productive group meetings throughout the course of the project, it was ensured that the completion
date was not pushed back even further than it had already been.
F-02-05-04-09
MAIN PART 2nd ITEM IN FIRST LAYER OF PRODUCT TREE 9th ITEM IN FOURH LAYER OF PRODUCT TREE
Figure 3.1.0 Product Structure Tree
Now, the elbow rest height applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
𝑥0.85 𝑥 + 𝑥𝑥𝑥50𝑥 = 𝑥0.85
𝑥0.85 = 1.037(2.51) + 0.135(175) = 26.23 𝑥𝑥
Female
𝑥0.05 –𝑥𝑥𝑥50𝑥
Z0.05 = -1.645 = 𝑥
0.122(152)− 0.14(162)
𝑥= = 2.51
−1.645
Now, the elbow rest height applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the seated eye height applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the elbow to elbow breadth applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the elbow to elbow breadth applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the thigh clearance applicable to the male population being designed for can be calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the thigh clearance applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Male
𝑥0.95 –𝑥𝑥50𝑥
Z0.95 = 1.645 = 𝑥
0.317(185)− 0.311(175)
𝑥= = 2.6
1.645
Now, the knee height applicable to the male population being designed for can be calculated.
𝑥0.85 –𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the knee height applicable to the female population being designed for can be calculated.
𝑥0.15 –𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the buttock-knee length applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the buttock knee length applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the hip breadth applicable to the male population being designed for can be calculated.
𝑥0.85 –𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the hip breadth applicable to the female population being designed for can be calculated.
𝑥0.15 –𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the vertical arm reach applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the vertical arm reach applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the functional arm reach applicable to the male population being designed for can be
calculated.
𝑥0.85 –𝑥𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the functional arm reach applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Now, the popliteal height applicable to the male population being designed for can be calculated.
𝑥0.85 –𝑥𝑥50𝑥
Z0.85 = 1.037 = 𝑥
Now, the popliteal height applicable to the female population being designed for can be
calculated.
𝑥0.15 –𝑥𝑥50𝑥
Z0.15 = 0.384 = 𝑥
Workplace Layout/Description
This workstation is where the oscillator assembling is done. There are 2 bins on the left side of the
fixture which are for the oscillator arm and clamping gasket. These bins are 3”x3”x4” and are stacked
one on top of the other. The bin on the right side of the fixture is a 2”x2”x4” gravity bin as well which
holds the washers. Near that bin is a can of grease and under that are two 1” diameter holes beside
each other that are used to hold the clamping tool. There is also a 7.5”x5” surface raised above the
ground used to hold the oscillator body which comes in on a conveyor in compartmental boxes as
delivered by the outsourced part supplier. The drawings below show both the workstation as a whole
with the table dimensions and the one following that shows a detailed, technical drawing of the
workstation with all of the dimensions that will be necessary to set it up.
Fixture/Fixture Description
For this workstation, like many of the others to follow, the fixture is simply a block 2” high with
dimensions as shown in the drawing. There is a 2”x3” slot within the fixture 0.5” deep to hold the
oscillator plate which is simply placed in the fixture to hold it steady so work can be done on it. A
dimensioned, technical drawing with a cross-section of the top view is shown below to better portray
the fixture in its entirety.
Figure 4.2.2. Assembly group 1 fixture
Job Instructions
1. Position oscillator plate within the fixture on the workstation itself and apply grease at the lower
end of the shaft
2. Connect oscillator arm to oscillator body and secure this assembly on shaft by applying pressure
3. Place washer around top of shaft protruding through oscillator arm and body assembly and use
special clamp-dilating tool to open clamp and place over washer
4. Place assembly on conveyor and activate to send to next workstation (AG2)
Workplace Layout/Description
In this workstation, there are two stacked bins on either side of the fixture. All four bins are 2”x2”. The
two bins on the left are for short screws and synchronous motors while the two on the right are for
connector arms and medium screws. The bins are 4” deep also so they can hold quite a few of the parts
they are designated for so as to reduce the amount of time necessary for re-filling. These bins, like
AG1’s bins, are also gravity-fed so that all parts are at the front lip of the bin. There is also an overhead
air wrench for securing screws. It was placed 24” above the worktable so it is within the vertical arm
reach of the operator while sitting. Also in this workstation is a bigger bin, otherwise known as a tote
pan of size 8”x6”x6” to hold the oscillator assembly as it comes in on a conveyor from station 1. The
conveyor is run at a slow speed so that the part is not thrown into the tote pan in a way that can cause
damage to it. That conveyor, although connected to the one bringing the part from AG1, is still
independently-controlled by the AG2 operator so if there is a backup of oscillators in the tote pan (which
shouldn’t happen), he/she can stop the belt until they are able to clear enough room for more
assemblies in the tote pan.
Figure 4.2.3. Assembly group 2 top view table dimensions
Figure 4.2.4. Assembly group 2 top view detailed dimensions
Fixture/Fixture Description
For this workstation, there is a 14”x4.5”x2” fixture which consists of a large diameter hole on the left
side and a small diameter hole on the right side. The large diameter hole is used to hold the oscillator
assembly from AG1 in place with the oscillator plate facing upwards so that the synchronous motor can
be attached. The fixture with the smaller diameter hole is used to hold the assembly completed in the
first fixture upside down with the synchronous motor now facing down so that the connector arm can
be attached. The diameter of the larger hole is 3” and the diameter of the smaller hole is 1.25”. The
depth and diameter of the larger hole is meant to be able to hold enough of the oscillator body in it to
ensure that the assembly does not move around during the process. The depth of the smaller hole is the
same as well but the diameter is less because it only needs to hold the synchronous motor after the
assembly is flipped. A dimensioned top view as well as a cross section of the fixture can be seen below.
Figure 4.2.5. Assembly group 2 fixture
Job Instructions
1. Get the oscillator assembly from the bin that it enters off of the conveyor from AG1 and position it
in the fixture with the bigger hole
2. Use the overhead air wrench to attach the synchronous motor to oscillator plate (2 short screws)
3. Flip assembly upside down and place into next fixture i.e. the one with the smaller hole
4. Attach connector arm to both the synchronous motor and to oscillator assembly (2 medium screws
and 2 washers)
5. Place the assembly on the conveyor and activate to send to next workstation (AG3)
Workplace Layout/Description
This workstation is where the motor assembly takes place. Because the motor assembly requires screws
at some point, an overhead air wrench is also located 24” over the worktable as in the previous
workstation. In the centre- top of the workstation, a conveyor belt brings the oscillator assembly with
the synchronous motor attached and leaves it in an 8”x5.5” tote pan. On the left side of the fixture are
three vertically stacked bins of size 7”x9”. These bins are large because one of them contains the motor
and although the other two which contain the medium screws and AC wire do not need such a large bin,
they have to be the same size to be stacked on top. This isn’t a problem at all because they are stacked
so they do not take up more room in any way. Also, since they’re larger, they hold more of the parts
they contain so re-filling is not as frequent. The three 6”x6” bins on the right are slightly smaller and are
also stacked. These three bins contain long screws, the wire protectors and the motor mount. On the
operator’s left side beside his ergonomic chair is the conveyor belt which will transport the assembly to
the next workstation. In the centre of the worktable is a fixture which is explained in more detail
following the overview and detailed schematic of this workstation’s layout.
Fixture/Fixture Description
The fixture on this table is 18”x6.5”x2” and consists of two rods protruding 6” upwards from the top of
the fixture base with clamps on each. The clamp is used to hold the assembly of the synchronous motor
and oscillator so that the wire may be passed through. After that, the same fixture is used to clamp the
motor mount in place so that the previous assembly may be attached to it and so that the wires may be
passed through the motor mount as well. While the motor mount is still clamped, the motor can also be
mounted to it. Also, it should be noted that the knob that controls the clamp is located on both sides so
regardless of which hand the operator currently has a part in or is doing work with, he may release or
activate the clamp using the other hand. There are also two holes on either side so the operator may
choose where to place the assembly from the previous workstation by fitting the synchronous motor
into one of the holes while wires are passed through the motor mount. These two holes are 12.2” apart
from centre to centre with a 4” diameter. The depth of the holes is 1.75”. A detailed drawing of this
fixture is shown below.
Job Instructions
1. Place protective cover over wire and pass through hole in oscillator with synchronous motor
assembly by first clamping assembly within fixture
2. Remove oscillator assembly and clamp motor mount into fixture and secure position by locking axel
3. Bring oscillator with synchronous motor near motor mount by placing in hole on fixture, pass wires
including AC power cord through respective holes in motor mount and secure (4 medium screws)
4. Mount motor to the motor mount (4 long screws)
5. Release clamp and put assembly on conveyor to be sent to next assembly station (AG4)
Workplace Layout/Description
Once the motor assembly has been brought to this workstation via conveyor, it arrives in an 8”x5.5” tote
pan which is exactly the same as the one in AG3. The bin sizes from left to right along an arc around the
workstation are 3”x4”, 2”x4”, 2”x2” and 3”x4” and they contain chip wiring, wire protectors, insulator
caps and capacitors respectively. Beneath the farthest bin on the right, there is a tool holder for the
wire stripper. By having the tool in a fixed location it reduces the time it takes to acquire and put it back
when using pre-determined time systems. The two holes where the tool handles are placed are both of
1” in diameter and separated 2” from centre to centre. This workstation layout can be seen below.
Figure 4.2.9. Assembly group 4 table dimensions
Figure 4.2.10. Assembly group 4 top view detailed dimensions
Fixture/Fixture Description
This fixture is simply a 7.5”x4”x2” block with a 6.5” wide slot in it for holding the motor steady on its side
so that wiring can be done. The slot is also 1.5” deep to ensure that the motor is deep enough in so it
does not move around. The motor is not heavier than 8 lbs. but it is definitely heavy enough already to
not move while wiring is done. This fixture is just for added security. A cross-sectional view of this fixture
can be seen below to show the depth of the indent in which the motor sits.
Figure 4.2.11. Assembly group 4 fixture
Job Instructions
1. Position motor assembly in fixture (slot within block to fit motor assembly on its side and hold in
place for wiring) and strip and join capacitor and fan motor wires
2. Cover wire ends (2 insulator caps) and secure by squeezing with wire stripper
3. Get chip wiring and place protector over it then place wire near the fixture
4. Strip the 5 appropriate motor and chip wires, join them respectively and cover ends (5 insulator
caps) and secure by squeezing with wire stripper
5. Get the appropriate single wire each from the motor, power cord, chip and synchronous motor and
strip each and join all four
6. Cover ends (1 insulator cap) and secure by squeezing with wire stripper
7. Place assembly on conveyor and activate to send to next workstation AG5
Workplace Layout/Description
Like the previous workstations, there is a fixture as well as a centre-top tote pan which 8”x5.5”. This tote
pan houses the wired motor assembly from AG4 as it comes in off of the conveyor belt. On the left side
of the fixture, there are two vertically stacked gravity bins. These bins are 2”x4” and they are used to
hold screws and the chip housing base. The bin on the right is 2”x2” and it is for the chip itself. This bin is
raised slightly on a platform to allow easier access since the bin is small and the fixture will be in the way
of the operator’s reach. On the bottom left-hand side of the worktable, there is a 1.25” hole for the
solder iron while the bottom right hand side table there are two holes where the tool handles of the
wire stripper are placed. These two holes are both of 1” in diameter and separated 2” from centre to
centre. A layout of this workstation can be seen below complete with all dimensions necessary to set it
up.
Figure 4.2.12. Assembly group 5 table dimensions
Figure 4.2.13. Assembly group 5 top view detailed dimensions
Fixture/Fixture Description
This workstation has one fixture which holds three different parts in place so that additional wiring and
soldering can be done. The base of the fixture itself is 4” thick. The motor assembly is placed on its spot
in the fixture which is the same as the previous workstation – a block with a slot to hold it in place for
wiring purposes. This block is 4”x3” and goes 3” deep into the fixture. This is in the upper centre of the
fixture – closer to the bin from which it is taken. On the bottom left hand corner of the fixture is a slot to
hold the chip housing base. This slot is 4”x3” and goes 2” into the fixture. It was designed to fit the chip
housing base very snug as it is a close fit. The chip is placed on the right side of the fixture which is
basically four round legs protruding 3” upwards from the fixture base so that there is room for wires
beneath the chip. The horizontal distance between the legs is 3” and the distance from one hole further
up from the other hole on the fixture is 1.5” from centre to centre. The thickness of each leg is 0.45”.
This fixture is shown below with a cross section so the depths of the slots can be seen.
Job Instructions
1. Get wired motor assembly from compartmental conveyor and chip from bin and place in each of
their respective positions on the fixture. Place chip with lights facing upwards
2. Take the 6 appropriate chip wirings and strip them and push wirings appropriate distance through
respective holes in chip then flip chip upside down and put back into same fixture
3. Solder wires and cut off excess using wire stripper
4. Place chip housing base in fixture and secure chip to it (4 short screws)
5. Put completed assembly on conveyor and activate to send to next workstation, AG6.
Workplace Layout/Description
In this workstation, there are two stacked bins on the left of the fixture and three stacked bins on the
right of the fixture. The two left bins are 3”x4” and they are not too big because they are used to hold
the wire housing base and the chip housing lid which are of a slightly smaller size than the bins. The
three bins on the right are 4”x5” and they are used to hold the medium screws, short screws and wire
housing lid. The reason these bins were strategically placed on the left and right sides as they are is
because it is the best way that could be found, given the scenario, to minimize reaching distances for the
operator. Again, above the fixture in the centre of the table is an 8”x5.5” tote pan which holds the
assembly from the previous workstation. Beside the operator’s chair, there is a 15”x10” tub that is used
to house the front section of the upper body which is a long part so it could not fit on the worktable
itself. The layout of this workstation can be seen below.
Figure 4.2.15. Assembly group 6 table dimensions
Figure 4.2.16. Assembly group 6 top view detailed dimensions
Fixture/Fixture Description
In this workstation, it was necessary just to have a fixture that was large enough to hold the front
section of the upper body in place while the other parts such as the motor assembly and chip are mated
to it. The idea for this fixture originated with the thought of a half-pipe. The front section of the upper
body has such a shape as well so it will sit perfectly within such a fixture. The fixture is 34”x7”x4”. The
half-pipe feature is about 3” in diameter (radius of full-pipe would be 3”). Underneath the half-pipe, the
depth of the fixture is 0.85”. This fixture can be seen below.
Figure 4.2.17. Assembly group 6 fixture
Job Instructions
1. Put motor assembly on table so wire connections can be placed in wire housing
2. Place the front section of upper body in fixture and lock swivel
3. Mount wire housing above motor mount slot(1 short screw) and mount capacitor beside wire
housing (1 medium screw)
4. Mount the motor mount onto the front section of the upper body (4 medium screws – 2 on top, 2
on bottom)
5. Mount the chip housing with the cover to the body (4 short screws) while ensuring that wires from
motor to chipboard are run along the side of the upper body that is closer to the operator
Workplace Layout/Description
Because the part now coming in to this workstation is a large on which could easily get damaged as it is
still not fully secure and finished, the conveyor brings it to a stop on a rubber-coated platform to
prevent it from sliding further once it arrives. It stops there and awaits the operator. The conveyor on
the left of this platform is where the assembly is sent off after being finished with at this assembly
group. The three bins on the left of the fixture are 4”x3” and they contain, short screws, medium screws
and the button grids. The bin at the top of the fixture is 12”x5” and it is used to house the fan blade
cylinder. This bin contains separators whereby a stack of fan blade cylinders are separated from another
stack in an attempt to lessen the contact between them to avoid scratching. The 4”x5” bin to the right of
that contains the fan blade cylinder plate and the longer 3”x14” bin contains the protective shields
stacked on top of each other. Besides the operator, as it was in the previous station, there is a 15”x10”
tub to hold the back section of the upper body. The fixture as always is in the centre of it all. The
workstation and its arrangement are portrayed in the technical drawing shown below.
Fixture/Fixture Description
The fixture used in this workstation is the exact same as the one used in AG6. The reason for that is
because the same part is being worked on still. Although, it is understood that the part being worked on
is not as large as the fixture, it seemed to be the right way to go to design a universal fixture that can be
used in workstation 6, 7 and also 8 as will be seen later on within this section of the report. Just for re-
iteration purposes, the size of the fixture is 34”x7”x4” and it can be seen below.
Figure 4.2.20. Assembly group 7 fixture
Job Instructions
1. Cover wires on the side closest to the operator using protective shield and secure (3 short screws)
2. Mate fan blade cylinder to fan blade cylinder plate
3. Position fan blade cylinder and apply pressure to slide it onto motor shaft and secure (1 short screw)
and secure the plate on top of fan blade cylinder to body (2 short screws)
4. Position button grid over chip housing at the very top of the front section of the body
5. Attach back section of the upper body by positioning and applying pressure to mate clips between
the front and back sections of the upper body. Secure by using screws (2 short screws on upper
holes and 2 medium screws on lower holes)
4.2.8 Assembly Group 8 (Assembly of Motor and Upper Body and Lower Body)
Workplace Layout/Description
In this assembly group, there are 4 gravity bins – 2 stacked on either side of the fixture, which are 3”x4”
each. The bins on the left side contain long screws and short screws while the bins on the right contain
washers and medium screws. Like the previous two workstations, there is a 15”x10” tub to hold the
back and front sections of the lower body. However, since there are two parts to be held in this tub,
there is a separator horizontally across which is lower than the depth of the tub so the operator can
reach the part on the back side easily. Also, as it was in the other station, the part coming in is getting
larger and more fragile so the rubber platform is implemented here as well to stop it until the operator
is ready for it. The conveyor to the packaging station is located on the left of this rubber-coated
platform. The dimensioned workstation can be seen below.
Figure 4.2.21. Assembly group 8 table dimensions
Figure 4.2.22. Assembly group 8 top view detailed dimensions
Fixture/Fixture Description
As mentioned in the previous workstation, the fixture remains the same but its size is actually fully
utilized in this workstation as the part that sits on it is the entire length of the fan itself which is about
40”. However, it was decided that the fixture not be made to fit the entire 40” of the fan but just enough
so that the final parts can be assembled to it. Again, the size of the fixture is 34”x7”x4” and it is shown
below.
Figure 4.2.23. Assembly group 8 fixture
Job Instructions
1. Place assembly from Assembly Group 6 and front section of lower body in fixture and pass AC cord
through hole in lower body
2. Secure front section of lower body to oscillator (4 long screws)
3. Pass AC cord around stump located in the middle of the front of the lower body and secure (1 short
screw and plastic washer)
4. Ensure cord passes out the bottom hole in the lower body
5. Position the back section of the lower body over the front section and apply pressure to mate clips
between them (2 short screws at upper-most holes and 2 medium screws in remaining holes)
6. Send completed fan to packaging station 1
Workplace Layout/Description
In this first packaging station, as well as the second, the worker is standing so he isn’t as confined to a
certain work area as in the seated stations seen prior to this. The operator begins at the island of the
work station connected to the incoming conveyor belt. This is where the finished fan comes in. On the
right side of him/her, there are two 2”x2” vertically stacked bins which contain twist ties and small
plastic bags. Again, at the end of the entry conveyor, there is a platform coated with rubber to stop the
fan. Above this platform a roll of large plastic bags for the fan is suspended. Behind the operator at this
particular time are two tubs which contain Styrofoam centre-caps and bottom Styrofoam end caps. To
secure the centre-caps, tape is required to tape the two halves together. For that reason, this
workstation is equipped with a tape gun. Further up from the operator is a standalone fixture which will
be shown following the layout of the workstation below.
Figure 4.2.24. Assembly group 9 dimensions of islands and main worktable
Figure 4.2.25. Assembly group 9 top view detailed dimensions
Fixture/Fixture Description
As mentioned above, this workstation design utilizes some space-saving techniques as well as minimizes
numerous possible costs. The idea is that a stand-alone fixture be created for helping with the packaging
to be done at this workstation. Since no other bin, etc. is necessary; an entire worktable would be a
waste to create. It was also decided to add an adjustability feature to the stand because it is not as hefty
as a table so adjusting it won’t take much effort. The layout shows this fixture idea in more detail. Note
that the two halves are displayed as well as a side view. The reason for the two 12” halves with a 10”
gap in between is to allow the centre caps to be put on.
Figure 4.2.26. Assembly group 9 fixture
Job Instructions
1. While fan is still on conveyor, coil AC cord, tie with twist tie, cover in plastic bag and seal bag with
another twist tie
2. Gently pull roll of plastic bag in front of fan and slide it into the plastic bag with open end on top and
seal open end of bag with twist tie
3. Place fan on first fixture and place Styrofoam end cap on bottom end of fan as well as two half
pieces of Styrofoam around the middle of fan and tape halves together
4. Slide fan onto conveyor to send to AG10
Workplace Layout/Description
This assembly group is the final packaging station. The fan comes in from the first packaging station and
lands on yet another platform with rubber surface to stop it. At the bottom-left end on the main
worktable, there is a wall against which the fan’s box is pushed. That wall is 9.3” wide to adequately
accommodate the bottom of the fan box. Below this main worktable, on the left side, there is a 50”x18”
flat surface that is used to hold the stacks of unmade cardboard fan boxes. It is raised 30”above the
ground so when the pile gets low, the operator does not have to bend too much to reach it. Underneath
this platform is a 15.8”x18” tub which holds the bottom Styrofoam end caps. Below the main worktable
on the right of the operator, is a small island which is used to hold a number of part bins with parts
needed to complete the packaging process. The first 3 7”x7” bins are stacked one on top of the other
and they contain re-sealable plastic bags, batteries, and owner’s manual and above them is a rod, similar
to the one in workstation 9, from which is suspended a set of medium and small plastic bags. The next
two bins over from that are 7”x10” and are used to house front and back halves of the fan base. These
are also stacked on top each other. Above the area where the fan box is made, there is a conveyor belt
which leads to a chute which leads to a stop. From this stop the box can be picked up by the operator
and loaded onto a pallet 38” away from the chute which sits on a 40”x48” Econo-lift which is a flat
surface that is adjustable by the press of a button. Further up from this Econo-lift is a 10”x10”x10”
shrink-wrapping booth which contains a large roll of shrink wrap to be wrapped around the pallet by the
operator. This entire layout is shown below in parts as it is too large to fit in one drawing and show
dimensions at the same time.
Part 1 (Main worktable, island, entry conveyor)
Part 2 (Palletization)
This is where the skid is loaded and the shrink-wrapping is done. No layout of the overall dimensions is
needed as there is not much to dimension in this portion of the workstation. Therefore, the detailed
dimensions of this section of the second packaging station is portrayed below.
Figure 4.2.29. Assembly group 10 part 2 top view detailed dimensions
Fixture/Fixture Description
The fixture used in this workstation is basically the main worktable as it was called prior to this. It is
similar to the fixture in the first packaging station in the way that it is an adjustable stand-alone fixture.
However, there is no gap in this fixture. It consists of a flat surface connected to the entry conveyor with
a wall at the end acting as a stop. A portrayal of this is shown below.
Job Instructions
1. Take flat unmade box from Econo-lift and close back flaps and push against back wall of jig
2. Slide fan off of conveyor and into box
3. Put front fan base and back fan base into medium plastic bag from overhead bar on side-table and
slide into box with fan
4. Take re-sealable plastic bag from bin on side-table, put 2 AAA batteries and the owner’s manual into
it and put in box with fan
5. Place Styrofoam end cap on top of fan and place small plastic bag with remote into slot on top of
end cap
6. Close top flaps of box and seal with tape
7. Remove box and seal the bottom end flaps with tape and gently slide fan on to conveyor to take it
down the chute to stop where it will await placement onto pallet
8. Place fan on pallet and once pallet is full, shrink wrap and take to shipping area
Assembly Group 1
Operation: Oscillator Assembly
Description – LH No. LH TMU RH No. Description – RH
Conversion
Element Factor Element Occurrence
Element 14% Total Time
Time 1.00 Time per Piece or
Description Allowance Allowed
TMU Allowed Cycle
Leveled Time
Greasing
102.8 102.8 14.4 117.2 1 117.2
oscillator plate
Mating
oscillator arm
268.9 268.9 37.6 306.5 1 306.5
and body with
shaft
Total Time 423.7
TMU +69.5PT
Assembly Group 2
Operation: Synchronous Motor and Oscillator Assembly
Description – LH No. LH TMU RH No. Description – RH
Reach for screw R5C’ 14.9 R24A Reach for air wrench
Get screw from bin G4C 12.9 G1A’ Grasp air wrench
Move screw to air Move air wrench above
M9C’ 17.0 M18B
wrench connector arm
Re-grasp screw while
G2’
moving
Position air wrench on
Release screw RL1’ 5.6 P1SE screw before releasing
the screw
Reach for washer R9C 19.1
Get washer from bin G4C 12.9
Move washer to
M5C 9.2
connector arm
Position washer over
P1SD 11.2
hole in connector arm
Move air wrench with
10.3 M6C
screw to hole
16.2 P2SE Position screw in hole
Release washer RL1’ 10.6 APA Activate air wrench
69.5 PT Process Time
8.9 M6B Move air wrench aside
Reach for screw R5C 9.4
Get screw from bin G4C 12.9
Move screw to air
M9C 12.7
wrench
Re-grasp screw while
G2’
moving
Position screw on air
P2SE 16.2
wrench
Release screw RL1 2.0
Reach for washer R9C 12.2
Get washer from bin G4C 12.9
Move washer to
M9C 12.7
connector arm
Position washer over
P1SD 11.2
hole in connector arm
Move air wrench with
10.3 M6C
screw to hole
16.2 P2SE Position screw in hole
Release washer RL1’ 10.6 APA Activate air wrench
69.5 PT Process Time
Move air wrench to
12.2 M10B
initial position
Reach for assembly R2A 4.0 RL1’ Release air wrench
Grasp assembly G1A 2.0
Move to conveyor M18B 17.0
Release assembly RL1’ 8.5 FM Activate conveyor
69.5 PT Process Time
Position oscillator in
P3NSD 53.4
motor mount
Reach for air wrench
11.4 R16A
with screw
2.0 G1A
Move air wrench to
18.7 M16C
oscillator
16.2 P2SE Position screw in hole
10.6 APA Activate air wrench
69.5 PT Process Time
Move air wrench a little
4.6 M2B up to avoid bouncing
around once released
2.0 RL1 Release air wrench
14.2 R12C Reach for screw
12.9 G4C Grasp screw
Move screw to air
25.5 M24C
wrench
Re-grasp screw while
G2’
moving
16.2 P2SE Position screw on air
wrench
2.0 RL1 Release screw
Reach for air wrench
4.0 R2A
with screw
Move air wrench with
18.7 M16C
screw to oscillator
16.2 P2SE Position screw in hole
10.6 APA Activate air wrench
69.5 PT Process Time
Release oscillator RL1’ 8.9 M6B Move air wrench aside
Reach for screw R12C 14.2
Grasp screw G4C 12.9
Move screw to oscillator M12C 15.2
Re-grasp screw while
G2’
moving
Position screw in hole P2SE 16.2
Move air wrench to
10.3 M6C
screw
Position air wrench on
16.2 P2SE
screw
Release screw RL1’ 10.6 APA Activate air wrench
69.5 PT Process Time
8.9 M6B Move air wrench aside
Reach for screw R12C 14.2
Grasp screw G4C 12.9
Move screw to oscillator M12C 15.2
Re-grasp screw while
G2’
moving
Position screw in hole P2SE 16.2
Move air wrench to
10.3 M6C
screw
Position air wrench on
43.0 P3SE
screw
Release screw RL1’ 10.6 APA Activate air wrench
69.5 PT Process Time
Move air wrench up a
4.6 M2B little before releasing
so it does not recoil
2.0 RL1 Release air wrench
Conversion
Element Factor Element Occurrence Total
Element 14%
Time 1.00 Time per Piece or Time
Description Allowance
TMU Leveled Allowed Cycle Allowed
Time
Passing AC and
synchronous
motor wires 395.9 395.9 55.4 451.3 1 451.3
through motor
mount
Join oscillator with
synchronous
481.6 481.6 67.4 549.0 1 549.0
motor to motor
mount
Mount motor to
581.2 581.2 81.4 662.6 1 662.6
the motor mount
1662.9
Total Time
+625.5P
TMU
T
Assembly Group 4
Operation: Motor Wiring
Description – LH No. LH TMU RH No. Description – RH
Joining main motor, power cord, chip and synchronous motor wires
Conversion
Element Element Occurrence Total
Element Factor 14%
Time Time per Piece or Time
Description 1.00 Allowance
TMU Allowed Cycle Allowed
Leveled Time
Join capacitor and
616.1 616.1 86.3 702.4 1 702.4
motor wires
Join motor,
synchronous
1277.5 1277.5 178.8 1456.3 1 1456.3
motor and chip
wires
Joining main
motor, power
cord, chip and 436.5 436.5 61.1 497.6 1 497.6
synchronous
motor wires
Total Time 2656.3
TMU +69.5PT
Assembly Group 5
Operation: Chip Housing
Description – LH No. LH TMU RH No. Description – RH
Release soldering iron RL1’ 8.3 R9A Reach for wire stripper
2.0 G1A Grasp wire stripper
Move wire stripper to
12.7 M9C 6
solder
Position over excess
26.6 P2NSD 6 solder and stripped
wire and cut
Move to designated
12.7 M9C
holder
9.1 P1SSE Position in holder
2.0 RL1 Release wire stripper
Conversion
Element Element Occurrence Total
Element Factor 14%
Time Time per Piece or Time
Description 1.00 Allowance
TMU Allowed Cycle Allowed
Leveled Time
Setting up chip
474.3 474.3 66.4 540.7 1 540.7
wiring in chip
Soldering chip
1071.5 1071.5 150.0 1221.5 1 1221.5
wiring to chip
Mounting chip to
532.9 532.9 74.6 607.5 1 607.5
chip housing base
3088.3
Total Time
+347.5P
TMU
T
Assembly Group 6
Operation: Motor Assembly to Upper Body
Description – LH No. LH TMU RH No. Description – RH
Conversion
Element Factor Element Occurrence
Element 14% Total Time
Time 1.00 Time per Piece or
Description Allowance Allowed
TMU Leveled Allowed Cycle
Time
Place wires in
146.5 146.5 20.5 167.0 1 167.0
wire housing
Mount wire
housing and
capacitor to front 360.0 360.0 50.4 410.4 1 410.4
section of upper
body
Mount motor
assembly to front
424.9 424.9 59.5 484.4 1 484.4
section of upper
body
Mount chip to
front section of 591.2 591.2 82.8 674.0 1 674.0
upper body
Total Time 1735.8
TMU +625.5PT
Assembly Group 7
Operation: Motor Mounting
Description – LH No. LH TMU RH No. Description – RH
Position button grid and mate back section of upper body to front section
Conversion
Element Factor Element Occurrence
Element 14% Total Time
Time 1.00 Time per Piece or
Description Allowance Allowed
TMU Leveled Allowed Cycle
Time
Cover wires using
524.2 524.2 73.4 597.6 1 597.6
protective shield
Mating fan blade
337.2 337.2 47.2 384.4 1 384.4
cylinder
Position button
grid and mate
back section of 314.1 314.1 44.0 358.1 1 358.1
upper body to
front section
Total Time 1340.1
TMU +764.5PT
Assembly Group 8
Operation: Assembly of Motor and Upper Body and Lower Body
Description – LH No. LH TMU RH No. Description – RH
Conversion
Element Factor Element Occurrence
Element 14% Total Time
Time 1.00 Time per Piece or
Description Allowance Allowed
TMU Leveled Allowed Cycle
Time
Pass AC wire
through front
162.6 162.6 22.8 185.4 1 185.4
section of lower
body
Secure front
section of lower 643.3 643.3 90.1 733.4 1 733.4
body to oscillator
Mate back
section of lower 439.5 439.5 61.5 501.0 1 501.0
body
The values in this table are used to determine the weekly production and the weekly shipments required
to meet customer demands. This entails the amount of desired and consequent warehouse storage per
week, and the amount of overtime hours required per week. We found three possible alternatives with
different weekly overtime schedules for each customer for the year of 2012.
Overtime production in Alternative 1 is focused entirely in quarters two and three, with 26.8% of
overtime production for the first ten weeks and 17.0% of overtime production for the last three weeks
of each of these quarters. This alternative was proposed to account for the surplus in production in
quarters one and four. If any overtime production was allocated to quarter one, the maximum
warehouse storage would raise as more units are already being produced than shipped. The same idea
applies to quarter four, where if any extra units were produced, the warehouse storage at the end of the
year would be higher than necessary. To account for the increase in demand in year 2013, the standard
weekly production will increase from 11,200 to 11,400. This means extra workstations will be added to
the plant floor and additional operators will be hired for year 2013. In 2013, the weekly overtime
production is approximately half of that in 2012. This is due to the fact that 38,783 units are being
stored in the warehouse at the end of 2012, and so units can be pulled from the warehouse to meet the
higher customer demand.
Alternative 2 was proposed to implement lower weekly overtime production and percentage.To do this,
the overtime production was distributed across quarters one through three. 17.9% of overtime
production will be required for the first eleven weeks of each quarter and 16.1% will be required for the
twelfth week. There will be no overtime production in the last week of each quarter. This follows the
idea of lower overtime production at the end of each quarter in Alternative 1. The reason this idea is
included in these alternatives is to give the operators a break from working overtime each quarter to
increase worker moral. In 2013, the standard weekly productionremains 11,200 units, however just as
in Alternative 1, the overtime production is almost half of that in 2012.
Alternative 3 is different because the weekly production of 11,827 units was found by dividing the yearly
demand by 52 weeks. This alternative follows a similar overtime production scheme as Alternative 2,
however since the weekly production is higher, the overtime rate is lower. 11.8% overtime production
is required for the first week of each quarter, 10.1% is required for weeks 2-12, and 8.5% is required for
the final week of each quarter. In 2013, the weekly production increases to 12,132 units per week as it
is also found by dividing the demand by 52 weeks. Similar to Alternative 1, additional workstations will
be added to the plant floor and extra staff will be hired to produce the extra fans.
Below are the summaries of each alternative for 2012 and 2013. These tables show the total weekly
production proposed by each alternative, as well as the total weekly demand of all the customers
combined. From this, the difference in production and shipment is shown. The table then sums up
difference in production and shipment at the end of each quarter. The number of overtime units
produced for each quarter is also shown in each of these summary tables. From the difference in
production and shipment, and the overtime production, the warehouse storage at the end of each
quarter is shown. The complete, week by week alternatives are shown in Appendix B – Customer
Demand Forecasts. These tables showcase the overtime production per week, in terms of fans and as a
percentage of the weekly production. They also show how the warehouse storage fluctuates each week
of the year.
Alternative 1 was selected due to its low maximum warehouse storage. The significance of this will
show in the cost analysis as the size of the storage facility is very important. Also, with less units being
stored, there are less units to incur errors while being stored such as damaged inventory. This
alternative was also selected because it does not rely on operators committing to working overtime
every week for the first three quarters of the year but instead work a higher percentage of overtime in
the summer months for just in time production. The week by week forecast of Alternative 1 is shown in
the table below.
Table 5.1.6. Alternative 1 – 2012 week by week forecast.
Yearly Demand 615,000
Weekly Production 11,200
Weekly Weekly End of
Weekly
Demand Difference Overtime Quarter
Quarter Week Overtime
(Weekly (Production - Production Warehouse
Percentage
Shipment) Shipment) Storage
Q1 1 4,762 6,438 0 0.0% 6,438
2 4,762 6,438 0 0.0% 12,876
3 4,762 6,438 0 0.0% 19,314
4 4,762 6,438 0 0.0% 25,752
5 4,762 6,438 0 0.0% 32,190
6 4,762 6,438 0 0.0% 38,628
7 4,762 6,438 0 0.0% 45,066
8 4,762 6,438 0 0.0% 51,504
9 4,762 6,438 0 0.0% 57,942
10 4,762 6,438 0 0.0% 64,380
11 4,762 6,438 0 0.0% 70,818
12 4,762 6,438 0 0.0% 77,256
13 4,762 6,438 0 0.0% 83,694
Q2 14 14,131 -2,931 3,000 26.8% 83,763
15 14,131 -2,931 3,000 26.8% 83,832
16 14,131 -2,931 3,000 26.8% 83,901
17 14,131 -2,931 3,000 26.8% 83,970
18 14,131 -2,931 3,000 26.8% 84,039
19 14,131 -2,931 3,000 26.8% 84,108
20 14,131 -2,931 3,000 26.8% 84,177
21 14,131 -2,931 3,000 26.8% 84,246
22 14,131 -2,931 3,000 26.8% 84,315
23 14,131 -2,931 3,000 26.8% 84,384
24 14,131 -2,931 1,900 17.0% 83,353
25 14,131 -2,931 1,900 17.0% 82,322
26 14,131 -2,931 1,900 17.0% 81,291
Q3 27 20,185 -8,985 3,000 26.8% 75,306
28 20,185 -8,985 3,000 26.8% 69,321
29 20,185 -8,985 3,000 26.8% 63,336
30 20,185 -8,985 3,000 26.8% 57,351
31 20,185 -8,985 3,000 26.8% 51,366
32 20,185 -8,985 3,000 26.8% 45,381
33 20,185 -8,985 3,000 26.8% 39,396
34 20,185 -8,985 3,000 26.8% 33,411
35 20,185 -8,985 3,000 26.8% 27,426
36 20,185 -8,985 3,000 26.8% 21,441
37 20,185 -8,985 1,900 17.0% 14,356
38 20,185 -8,985 1,900 17.0% 7,271
39 20,185 -8,985 1,900 17.0% 186
Q4 40 8,231 2,969 0 0.0% 3,155
41 8,231 2,969 0 0.0% 6,124
42 8,231 2,969 0 0.0% 9,093
43 8,231 2,969 0 0.0% 12,062
44 8,231 2,969 0 0.0% 15,031
45 8,231 2,969 0 0.0% 18,000
46 8,231 2,969 0 0.0% 20,969
47 8,231 2,969 0 0.0% 23,938
48 8,231 2,969 0 0.0% 26,907
49 8,231 2,969 0 0.0% 29,876
50 8,231 2,969 0 0.0% 32,845
51 8,231 2,969 0 0.0% 35,814
52 8,231 2,969 0 0.0% 38,783
To find how many shipments must be made for a delivery, it must first be determined how many units
can fit on a single 53’ truck with dimensions 630” by 102” by 102” (Ship North America). This can be
done by finding the amount of units that can be loaded onto one stock keeping unit (SKU) and how
many skids can fit on one truck.
4-way CHEP (Commonwealth Handling Equipment Pool) stringer pallets will be used to load the fans.
The dimensions of each pallet are: 48” long by 40” wide by 6” tall. The dimensions of each box used to
package the fans are 8” long by 8” wide by 40” tall. Based on these dimensions, six boxes can be laid
side by side to create one level of units on the pallet. Since Sears, Canadian Tire and Wal-Mart each
have different regulations as to the height of the skids they accept, separate calculations for the number
of fans that can fit on a single truck must be made for each customer.
∑ 𝑥𝑥
𝑥 = 𝑥×∑ 𝑥𝑥 = 𝑥 ×
𝑥
To identify the slowest operation, the standard minutes for each work station are divided by the
estimated number of operators. The results are shown in the following table.
Table 7.1.2. Standard time per unit
Work station 1 0.296/2 = 0.148
Work station 2 0.742/5 = 0.148
Work station 3 1.373/8 = 0.172
Work station 4 1.635/9 = 0.182
Work station 5 2.061/12 = 0.172
Work station 6 1.417/8 = 0.177
Work station 7 1.263/7 = 0.180
Work station 8 1.269/7 = 0.181
Work station 9 0.882/5 = 0.176
Work station 10 1.587/9 = 0.176
Since work station 4 has the greatest time, this station determines the output from the line. In this case,
9 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 410 𝑥𝑥𝑥𝑥𝑥𝑥𝑥
= 2,256 𝑥𝑥𝑥𝑥𝑥/𝑥𝑥𝑥
1.635 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥
Therefore, with this line balancing method, 16 extra units can be produced per day. Although this rate
of production allows for extra units to be produced, if it is still inadequate or not enough, the rate of
production of workstation 4 should be increased. This can be done by working the operator at this
station overtime, or hiring a tenth part time worker as opposed to the regular nine. It can also be done
by adjusting the current production method by reassigning some of the work of operation 4 to
operation 3, or by improving the method at this workstation to lower the time of this operation. This
may be necessary in 2013 where the daily production will increase to 2,280 units per day.
7.2 Plant Description
In order to have a fully functional plant, it must have several key features including the assembly line
equipped with the necessary number of station as calculated through line balancing, office space,
cafeteria, receptionist desk, conference room, washrooms, shipping and receiving docks as well as
storage space for excess assemblies. The overall layout of our plant is shown below and it is followed by
a close-up view of selected parts and a description of each of these parts.
Figure 7.2.0 Overall Plant Layout
In the above layout, there is a main entrance to the plant from the parking lot which is followed by
another set of doors which leads to the lobby of the plant. Once inside, on the left side, there is a
receptionist’s desk near which is a door to the general manager’s office. Before one can enter actual
plant, they must pass the receptionist’s desk and go straight ahead through the doors which can only be
activated using an ID card’s magnetic stripe. Once in the plant, there is the assembly line and further
past it are the warehouse shelves to house extra fans. On the lower left and right sides of the building,
there are 4 shipping docks each. On the upper right hand side of the plant portion of the building closer
to the assembly line, there are two receiving docks. The main entrance for employees is located on the
upper left portion of the plant which is accessed from the west side employee parking lots. Upon
entering, there is a cafeteria to the left with washrooms through the east-side doors of the cafeteria.
Nearby that area is the offices and cubicles of the production control manager and staff, purchasing
agents, etc.
A closer look at the front portion of the building is shown below.
It is slightly clearer so it is possible to see the conference room with its table and chairs around it on the
top-right corner. The cafeteria is shown with its 7 tables and two fridges at the front. It is connected to
washrooms for easy access before and after eating. The general manager’s office has a blue line on its
north side in the drawing to denote double-pane glass windows. This gives a view of the outside while in
working in the office. The one door on the bottom-right is one of the two receiving doors for trucks
bringing in outsourced parts. West of the general manager’s office is their own personal washroom
followed by public washrooms for employees specifically during a board meeting call in the conference
room. While walking to and even while in a board meeting, one can look through the glass window to
see what is going on in the plant itself. It is also on the bottom left is a set of doors for the employee
entrance. And on the bottom of the drawing above is a cut-off assembly line which will be shown below.
In order to form a unified assembly line that will be able to perform at the required level set out by the
organization, the number of workstations was determined via line balancing and their conveyor belts
were connected as shown above. In order to minimize the amount of space necessary for the line, the
operator is confined to his workspace by conveyor belts which can be lifted if the operator needs to exit
or enter the workstation. The line begins at the northern end (top of drawing) with assembly group 1,
and then their conveyor belts lead to assembly group 2 and this trend continues all the way down to the
palletization stations (assembly group 10). Once the pallets are loaded and ready to go, they are either
taken to one of the shipping docks nearby if it necessary or they are stored in the warehouse portion of
the plant which is shown below.
Above are 20 shelves which are split into 2 giving 40 total shelves for storage of pallets after they are
shrink-wrapped at assembly group 10. The aisles between the shelves are 12’ for forklifts to maneuver
easily throughout them. There is a 12’ centre aisle as well so that the forklift operators don’t ever have
to travel from one end of a shelf to another if they were to put a pallet there. The amount of warehouse
storage was determined using the maximum storage found for the year 2013 so although all of the
shelves may not be full in 2012, they certainly will be in 2013.
8.0 Cost Analysis
To make recommendations on the production of the tower fan considered in this study, the various
costs involved in the production must first be analyzed. From this, a suggested selling price can be
determined and profit or loss estimates can be made. The costs involved in the production include the
cost of: supply of all manufactured parts and packaging materials, labour including overtime, employee
benefits, the plant and warehouse space, property tax and building insurance, hydro and water,
operator chairs, assembly bins, tools, fixtures, conveyors, pallets, shrink wrapping equipment, and
electric forklifts.
Cost of labour
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = 88 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 15.65 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 ×
2,080 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = $2,864,576.00
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = 72 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 23.50 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 ×
219 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥 = $370,548.00
The number of operators consists of workers on the assembly line (72), maintenance and janitorial staff
(4), and the shipping and receiving department workers including forklift operators (12). The number of
hours per year includes 8 paid hours a day, 5 days a week, 52 weeks a year. The overtime hours were
found by determining the ratio of the overtime production per day compared to the regular daily
production. A 15 minute paid break was included for each session of overtime per day, given that this
session is between 3 and 5 hours. Also, it was deemed necessary for only the 72 assembly line
operators to work overtime.
Cost of employee benefits
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 88 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 5.4775 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 ×
2,080 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = $1,002,601.60
Cost of tools
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 = 69 × 400 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 = $27,600.00
The power tools used throughout the assembly process are an overhead air wrench and a soldering iron.
10 extra tools were included in the cost analysis to account for the possibility of damage or
misplacement of these tools.
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥
= 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 = 49 × 50 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥 − 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 = $2,450.00
Since non – power tools were also used in the assembly process, 50 dollars was allocated for each non –
power tool. These tools include a grease brush, a clamp, a wire stripper, and a tape gun. 10 extra tools
were included in the cost analysis to account for the possibility of damage or misplacement of these
tools.
Cost of fixtures
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 72 × 500 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = $36,000.00
Cost of conveyors
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 717.12 𝑥𝑥𝑥𝑥 × 100 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = $71,712.00
Cost of pallets
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = 2,670 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 × 25 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥𝑥𝑥 = $66,750.00
The number of pallets used was determined by finding the maximum number of pallets shipped in one
week in year 2012, which occurs in quarter 3. It was assumed all pallets are interchangeable and
returnable from distribution centres.
Total cost
𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 = $30,807,858.46
𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 = $30,807,858.46/615,000 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥
𝑥𝑥𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥 𝑥𝑥𝑥𝑥 = $50.10
The total cost for 2012 is found by adding each of the costs calculated together. Although 653,783 fans
are produced in 2012, the surplus in the inventory is not included in the cost per fan as shown above.
This is because these fans will be sold and shipped out in 2013. This cost per fan sold is useful as it is a
necessity in determining the suggested sales price of the fan. With this suggested price, the profit or
loss in 2012 can be found, which essentially describes the feasibility of the manufacturing of this tower
fan. Once the profit or loss is found, recommendations can be made based on sales and production.
9.0 Conclusions and Recommendations
The customer demand alternative chosen entails an effective production plan to meet the demand. It
also creates the lowest amount of warehouse storage necessary out of the three alternatives; however
the amount of storage space necessary is still very high. It was found that to make the amount of
storage space necessary lower, the weekly production would have to be lowered, and the overtime
production would have to increase around quarters 2 and 3 when the demand is higher. Since the
weekly overtime production for quarters 2 and 3 in Alternative 1 is already almost 27% every week, it
was decided that increasing this percentage would be expecting too many overtime hours each week
from the operators.
As seen in section 7.1 Facilities Planning, workstation 4 is the slowest and therefore limiting operation in
the assembly line as a whole. It can also be seen that prior to the line balancing, workstation 5 spends
the longest amount of time to produce a single unit. It is recommended that the time necessary to
produce one unit at workstations 4 and 5 is reduced. This can be done by allocating some of the work
done at these stations to prior or subsequent stations, or by reengineering the process of each
workstation to lower the necessary TMUs.
The design of the plant and warehouse is sufficient in providing the necessary amount of facilities to
meet the demand of each customer. It is also efficient in that the assembly line and shipping and
receiving docks are strategically placed for the ease of transportation of materials and loaded pallets.
Despite the very large size of the plant and warehouse, the cost analysis shows that it is within a
reasonable budget, given that the fan is sold for at least $50.10.
Since 615,000 fans are sold in 2012, if the fan is sold for 10 dollars more than it costs, the total profit for
this year will be $6,150,000.00. This seems to be a reasonable profit for the first year of operation. A
sales price of $60.10 also leaves enough room for the distributers that are Sears, Canadian Tire and Wal-
Mart to make a significant profit by further increasing the price.
Based on the customer fulfilment planning and cost analysis, it is feasible to manufacture and distribute
this tower fan. If sufficient start – up funds are available, it is recommended that production starts in
immediately in January, 2012.
Appendix A – CAD Drawings
Total: / 100
Bibliography
Rose, J., Voytko, J. J., & Davolt, J. A. (1984). Maintainability Time Standards for Electronic Equipment.
New York: Rome Air Development Center.
Ship North America. (n.d.). Retrieved October 20, 2011, from Equipment, Truck Trailer Van
Specifications: http://www.shipnorthamerica.com/htmfiles/equipment.htm