Name: Faizan Ullah Semester: 5th

Program: MBA 3.5 (2017-21)

Process Analysis Practice problem Manufacturing of Bunk beds

Solution:

1) Capacity =?
Capacity = Total time available/Time require to process a batch

Steps Setup time Run time Total time of step

Minutes per setup Minutes per Bunk Minutes per Batch
bed
T =setuptime+ ( shirts
batch
× Run Time )

1. Cut 15 37.5 15+ ( 4 ×37.5 ) =165

2. Plane 10 38.4 10+ ( 4 ×38.4 )=164
3. Router 10 48 10+ ( 4 × 48 )=202
4. Drill 10 28 10+ ( 4 ×28 ) =122
5. Sand 25 24 25+ ( 4 ×24 )=121
6. Stain 15 12 15+ ( 4 ×12 )=63
7. Polyurethane 45 90 45+ ( 4 × 90 )=405
8. Kit assembly 0 40 0+ ( 4 × 40 )=160
9. Cleating 0 15 0+ ( 4 ×15 )=60
Total time require to process a batch = Sum of all steps time minutes
1462
Batch
Table 1. Total Required Time

hours minutes minutes

40 × 60 2400
week hour week Batches
Capacity= = =1.64
minutes minutes week
1462 1462
batch batch

Batches Beds Bunk Beds

1.64 ×4 =6.56∨7
week Batch week

As there is only one worker in the whole process therefore total process time will be equal to
sum of all steps time because the only worker will complete each step in required time. So he
will move towards next step after completing previous step. He will process one batch in
1462 minutes which mean 7 Bunks beds in one week.

2. Capacity in beds per week of each step if one worker at each step.
 Capacity (C) = Total time available (TTA) / Time require to process a batch (TRB)

Steps Setup Run Total time of Total TTA Capacit

C=
TRB
time time step Time y
Batches
Minute Minute Minutes per Availabl in Beds
per
s per s per Batch e Beds per
week
setup Bunk Minutes
shirts week
bed
T =setuptime+ ( batch
per
× Run Time
week
)
1. Cut 15 37.5 40 × 60=2400
15+ ( 4 ×37.5 ) =165 2400 4 ×14.5=58
=14.5
165
2. Plane 10 38.4 40 × 60=2400
10+ ( 4 ×38.4 )=164 2400 4 ×14.6=58
=14.6
164
3. Router 10 48 10+ ( 4 × 48 )=20240 × 60=24002400 4 ×11.88=47
=11.88
202
4. Drill 10 28 2400
10+ ( 4 ×28 ) =12240 × 60=2400 =19.74 ×19.7=78
122
5. Sand 25 24 25+ ( 4 ×24 )=12140 × 60=2400 2400 4 ×19.8=79
=19.8
121
6. Stain 15 12 15+ ( 4 ×12 )=63 40 × 60=2400 2400 4 ×38=152
=38
63
7. Polyurethan 45 90 45+ ( 4 × 90 )=40540 × 60=24002400 4 ×5.92=24
=5.92
405
e
8. Kit 0 40 2400
0+ ( 4 × 40 )=160 40 × 60=2400 4 ×15=60
=15
160
assembly
9. Cleating 0 15 2400
0+ ( 4 ×15 )=60 40 × 60=2400 4 × 40=160
=40
60
Table 2. Capacity

Capacity of each step is shown in above table.

Based on the above calculation step 7 naming “Polyurethane” is bottleneck because it has the
lowest capacity which is 24 bunk beds per week.

The overall capacity of the process is same as of the bottleneck which is 24 beds per week
because bottleneck is limiting the whole process to its capacity. Steps before Polyurethane
will process more but only 24 beds process in this step in a week because its overall capacity.
3. Capacity Utilization

Steps Capacity Demand Demand

Capacity utliztion= ×1
Capacity of step
Beds per week

1. Cut 58 20 20
×100=34 %
58
2. Plane 58 20 20
×100=34 %
58
3. Router 47 20 20
×100=42.5 %
47
4. Drill 78 20 20
×100=25.6 %
78
5. Sand 79 20 20
×100=25.3 %
79
6. Stain 152 20 20
×100=13.1%
152
7. Polyurethane 23 20 20
× 100=83.33 %
24
8. Kit assembly 60 20 20
×100=33.3 %
60
9. Cleating 160 20 20
×100=12.5 %
160
Table 3. Capacity Utilization

Capacity utilization will be higher at bottleneck because it has the lowest capacity and
demand cannot be exceed the lowest capacity. Demand must be less than or equal to the
bottleneck / overall capacity. Steps have higher capacity will have lower capacity utilization
because capacity of step is the denominator part of equation and nominator is same for each
step. When denominator increase result will decrease which mean it has inverse relation.
4. Capacity of each step if batch size is 8 beds per batch.

Capacity (C) = Total time available (TTA) / Time require to process a batch (TRB)

Steps Setup Run Total time of Total TTA Capacit

C=
TRB
time time step Time y
Batches
Minute Minute Minutes per Availabl in Beds
per
s per s per Batch e Beds per
week
setup Bunk Minutes
shirts week
bed
T =setuptime+ ( batch
per week
)
× Run Time

1. Cut 15 37.5 40 × 60=2400

15+ ( 8 ×37.5 )=315 2400 8 ×7.61=61
=7.61
315
2. Plane 10 38.4 40 × 60=2400
10+ ( 8 ×38.4 )=317 2400 8 ×7.6=61
=7.6
317
3. Router 10 48 2400
10+ ( 8 × 48 )=39440 × 60=2400 =6.098 ×6.09=49
394
4. Drill 10 28 10+ ( 8 × 28 )=23440 × 60=24002400 8 ×10.25=82
=10.25
234
5. Sand 25 24 25+ ( 8 × 24 )=21740 × 60=24002400 8 ×11.05=88
=11.05
217
6. Stain 15 12 15+ ( 8 ×12 ) =11140 × 60=24002400 8 ×21.62=173
=21.62
111
7. Polyurethan 45 90 45+ ( 8 ×90 ) =76540 × 60=24002400 8 ×3.137=25
=3.137
765
e
8. Kit 0 40 2400
0+ ( 8× 40 ) =320 40 × 60=2400 8 ×7.5=60
=7.5
320
assembly
9. Cleating 0 15 2400
0+ ( 8× 15 )=120 40 × 60=2400 8 ×20=160
=20
120
Table 4. Capacity when Batch size is 8.

By increasing batch size from 4 to 8 capacity of step will increase because there is setup time
in process before each step and increasing batch size will not increase setup time and
production will increase. For example setup time for step one is 15 minutes irrespective of
batch size either it processing 4 beds or 8 beds it require 15 minutes. In case of 4 beds per
batch total time require for 8 beds is 165 + 165 = 330 minutes and in case of 8 beds per batch
time require for 8 units is 315 minutes which mean saving 15 minutes and decreasing
denominator which in result increase capacity. In case of step 8 and 9 batch does not impact
result because its setup time is zero.

5. Recommendations for increasing the capacity of the process.

 I. Capacity can be increased by increasing the batch size as done in above tables
batch size increase from 4 to 8 also increase capacity. Hence by increasing
batch size also increase capacity. Proved by comparing “Table 2. Capacity”
with “Table 4. Capacity when Batch size is 8.” No potential cost difficulties
will arise.
II. Capacity can be increased by in increasing the available time from 2400 to
4800 hours per week will double the capacity from 24 to 48 beds per week but
it will also double the cost. Increasing available time the cost will also
increase.
III. Capacity can be increased by combining step 6 Stain and Step 7 Polyurethane.
Then

hours minutes minutes

2 workers × 40 × 60 4 8 00
week hour week Batches beds
Capacity= = =10.256 ×4 =4
minutes minutes minutes week batch
63 + 405 468
batch batch batch
Hence capacity increased from 24 to 41 beds per week but it will cause load
balancing issue.
IV. Capacity can be increased by reallocating the workers that step 5 and 6 which
is sand and stain will share one worker and step 7 Polyurethane which
bottleneck will be process by two workers. The capacity will be as follow:
hours minutes minutes
2 workers × 40 × 60 4800
week hour week Batches beds
Capacity= = =11.85 ×4 =47
minutes minutes week batch w
405 405
batch batch

hours minutes minutes

40 × 60 2400
week hour week Batches beds beds
Capacity= = =13 ×4 =52
minutes minutes minutes week batch week
121 +63 184
batch batch batch

Hence capacity increased from 24 to 47 beds per week. Now bottlenecks are
two step 3 and 7 both have capacity of 47 beds per week.

6. Throughput Time =?
 I
T=
R

R = 20 Bunk beds per week

I = 4+4+4+4+4+4+4+4+4+4+4+4+4+4+4+4+4 = 68 Bunk beds

68 Bunks beds
Throughput Time= =3.4 weeks
Bunk Beds
20
week

hours
3.4 weeks ×40 =136 hours
week

One bed will take 3.4 weeks or 136 hours to complete the entire process because there are
total 68 bunk beds in the process and the demand of the process is to process only 20 beds per
week. Each bed has to wait for its turn and will process after the processing of all other beds
which are ahead from them. Mean each bed has to wait for other work in process inventory.

7. Recommendation for reducing throughput time of the process.

a) Throughput time can be reduced by increasing the throughput rate which is 20 beds
per week but the process have the capacity 24 beds per week.
68 beds hours
Throughput time= =2.83 weeks × 40 =113 hours
beds week
24
week
But for this demand must be created which will increase cost.
b) Another way to reduce throughput time is to decrease the work in process inventory.
Work in process inventory can be decrease by:
i. Hiring more workers which will also increase cost.
ii. It can be decrease by changing system from Progressive bundle system
(PBS) to Unit Production system (UPS) and also by changing
management philosophy from high work in process to low work in
process.
c) Throughput time consist of cycle time, inspection time, move time and queue time. So
by decreasing these times will reduce throughput time but this decision will be costly.
For example introducing automatic system for speed up the movement of WIP to
 reduce time will cost extra. By reducing inspection time, you have to compromise the
quality of the product.

8. Workers allocation and maximum capacity if there are 5 workers.

1st worker will process step 1 and 2 which is Cut and Plane.

2nd worker will process step 3 and 4 which is Router and Drill.

3rd worker will process step 5 and 6 which is sand and Stain.

4th worker will process step 7 which is Polyurethane.

5th worker will process step 8 and 9 which is Kit assembly and cleating.
Capacity

Note: Figures of require time of individual step is taken from calculation of answer 1 which is
in Table 1. Total Required Time

Steps Required Time Capacity Capacity

In Minutes Batches per week Beds per weeks
Cut and Plane 165+164 = 329 2400 7.3 × 4=29
=7.3
329
Router and Drill 202+122 = 324 2400 7.4 × 4=30
=7 .4
324
Sand and Stain 121+63 = 184 2400 13 × 4=52
=13
184
Polyurethane 405 2400 5.92 ×4=2 4
=5.92
405
Kit assembly 60+160 = 220 2400 10.9 × 4=44
=1 0.9
220
And Cleating
Table 5. Capacity in case of 5 workers

Maximum demand process can meet is 24 beds per week. Polyurethane is bottleneck and its
capacity is the process capacity. Each two steps sharing one worker except Polyurethane but
still its denominator is high as compare to other while nominator which is minutes per week
is same for each step. In any other options of workers allocation mean that Polyurethane will
share its one worker with other step which make its denominator higher than 405 which will
decrease its capacity therefore this allocation is the one which produce maximum output.

Workers Allocation and maximum capacity if there are 4 workers.

1st worker will process step 1 and 2 which is Cut and Plane.

2nd worker will process step 3, 4, 5 and 6 which is Router, Drill, Sand and Stain

3rd worker will process step 7 which is Polyurethane.

4th worker will process step 8 and 9 which is Kit assembly and cleating.
Capacity

Note: Figures of require time of individual step is taken from calculation of answer 1 which is
in Table 1. Total Required Time

Steps Required Time Capacity Capacity

In Minutes Batches per week Beds per weeks
Cut and Plane 165+164 = 329 2400 7.3 × 4=29
=7.3
329
Router, Drill, Sand 202+122+121+63 = 2400 4.72 × 4=19
=4.72
508
and Stain 508
Polyurethane 405 2400 5.92 ×4=2 4
=5.92
405
Kit assembly 60+160 = 220 2400 10.9 × 4=44
=10.9
220
And Cleating
Table 6. Capacity in case of 4 workers

Based on above calculation the best allocation of 4 workers produce maximum 19 beds per
week. Any other combination of 4 worker allocation will produce less beds. For example if
Polyurethane share it one worker with sand and stain the denominator will be 405+121+63 =
589 which is greater than 508, nominator is same of every combination the issue is with
denominator. Another combination of cut, plane, Router and drill share 1 worker the
denominator will be 165+164+202+121 = 653 which also greater than 508. And the last
combination the Polyurethane share its one worker with Kit assembly and cleating the
denominator will be 405+60+160 = 625.

Hence the above combination will produce maximum beds per week.