Operations Management Assignment

Don’t bother me I can’t cope

The current production capacity of line A is 315 units/day and the current production
capacity of line B is 140 units/day.
Sane’s line
Activity Activity time Immediate predecessor
1 30 None
2 50 None
3 40 1
4 50 1
5 20 2
6 10 3
7 10 4,5
8 20 2
9 10 6
10 40 9
11 20 7
12 30 7
13 50 9
14 50 10
15 10 11
16 40 8,12
Total lead time 480

Cycle time = 420mins/315mins =1.33minutes/unit= 80 sec/unit

Workstation Activities Time
1 1,3 70
2 2,5 70
3 4,8 70
4 6,9,13 70
5 7,10,11 70
6 14,15 60
7 12,16 70

All the workstations except workstation 6 are bottlenecks as they are taking 70 seconds.
Uma’s line
Activity Activity time Immediate predecessor
A 40 None
B 50 None
C 70 A
D 20 A
E 50 A
F 40 B,C
G 60 E
H 30 D,G,F
Lead time 360 6 mins

Workstation Activity Time

1 A,B,C,D 140
2 E,F,G,H 140

The bottlenecks are station 1 and 2 as both are taking the maximum time of 140
seconds.

Sane and Uma have to decide if they can manage with one worker or they require two
workers for the increased capacity. The company has budget constraints and they can
only hire three workers.

For Sane target production = 420 units/day workstations = 9

workstation Activities Time Max prod. capacity
1 1 30 504
2 2 50 504
3 3,5 60 420
4 4,6 60 360
5 10 40 420
6 7,11,12 60 420
7 9,13 60 420
8 14,15 60 360
9 8,16 60

Available time = 9 X 420 = 3780

Utilized time = 8 mins X 420 units = 3360
Efficiency = (Utilized time/Available time) X 100 = 88.89
For Uma target target production = 210 units/day workstations = 3
Workstation Activities Time Max production
capacity
1 A,B,D 110 229
2 C,E 120 210
3 F,G,H 130 194

Available time (mins) = 3 X 420 = 1260

Utilized time = 6 X 210 = 1260
Efficiency = 100%

Sane (cost implications to the company)

Units/day Per unit Per Day Normal No. of Normal
contribution(Rs) contribution(Rs) Wages(Rs) Workers hours
420 30 12600 18 9 8
420 30 12600 18 8 8

Overtime hours Wages/day + overtime

0 1296
2 1632

Uma (Cost implications to the company)

Units/day Per unit Per Day Normal No. of Normal
contribution(Rs) contribution(Rs) Wages(Rs) Workers hours
210 30 6300 18 3 8
210 30 6300 18 4 8

Overtime hours Wages/day + overtime

1 529.2
0 576

From the above analysis, based on cost it can be inferred that Sane should get two more
workers whereas Uma should get only one worker.