Constraint management assignment

1.

a. How long does it take the average customer to complete this process?

For an average customer, the process will take him or her, a total of 39.5 minutes.

Calculations

Average time=B1+B2 + (B3-a) + (B3-b) + B4= 10+8+ (15+10) +9

=18+12.5= 39.5 min

b. What single activity is the bottleneck for the entire process?

Barber B3-a becomes the bottleneck of this process, it is because it contains the smallest number of
customers.

B1=60/10=6

B2=60/8=7.5

B3-a=60/15=2

B3-b=60/10=6

B4=60/9=6.6

b. What single activity is the bottleneck for the entire process?

In this step the speed is limited; it only serves six (6) customers per hour.

2.

a. a. What is the capacity of Barbara’s shop in terms of the numbers of Type A customers who

can be served in an hour? Assume no customers are waiting at Steps T1 or T7.

In type A per hour

T2=60/13=4.62 customers

T3=60/14+60/10+60/11= 15.74 customers

T4=60/18= 3.33 customers

b. If 30 percent of the customers are Type A customers and 70 percent are Type B

customers, what is the average capacity of Barbara’s shop in customers per hour?
Type b customers have their bottleneck at T6 because the processing time is very long for a single
customer. Type B customers capacity is at 60/22= 2.73 customers in an hour. Therefore we have the
average capacity as 0.3*3.33+0.7*2.73=2.9 customers in an hour.

c. Assuming that the arrival rate is greater than five customers per hour, when would you

expect Type A customers to experience waiting lines, assuming no Type B customers in the

shop? Where would the Type B customers have to wait, assuming no Type A customers?

Type A customers will have to wait for steps T5 and T6 for a similar reason. This is an assumption that
there are new customers that are coming to barbras shop. Type B customers will have to wait for T1(12),
T7(10), T4(18), T3-a (14), T3-c(11), T3-b (10) Type A or Type B. Type B T2(13) T6(22) T5(15).

3.

a. If only toy A-148 is produced during a specific week, how many units could be produced?

Toy A-48 in whole stations= 6+4+5+3= 18 minutes per toy

Hours in that week= 16*5+(8)=88 hours

Minutes= 88*60= 5280

Number of A-148 toys= s1= 880, s2=1320, s3=1056, s4= 1760

b. If weekly demand for the four products are A-148 = 200 units, B-356 = 250 units, B-457 =

250 units, and C-843 = 300 units, which station is the bottleneck, and is it capable of

producing all the toys demanded?

Station 3 I the bottleneck and is capable of producing the demanded toys it produces A148-1056, B356-
750, B457-1320 and C-2640 which surpasses the total demand.

4.

a. Using the traditional method, which bases decisions solely on a product’s contribution to

profits and overhead, what is the optimal product mix and what is the overall profitability?

Traditional method

Contribution margin of the product super duper is more of the deluxe model, preffered in the
production of the first super duper with all of the remaining capacity of deluxe model.

Start with loading 60 units in all the 3 machines and do the determination of the remaining machines
minutes.
Number=( remaining time on bottleneck)/(time unit on bottle necks)=600/15=40 units

Starting minutes

In traditional method we get to male 60 units of super-duper and 40 unit of deluxe.

b. Using the bottleneck-based method, what is the optimal product mix and what is the

overall profitability?

Bottleneck method

Product mix

In this method, select the best product mixture according to the best dollar production mixture at the
bottleneck station Z.

Select according to the overall highest contribution prom each product. As in the table below

WS* Starting minutes Min after making $60 Min after making $40
X 2400 600 0
Y 2400 1200 600
Z 2400 1800 600

5.

a. Using the traditional method, which bases decisions solely on a product’s contribution to

profits and over-head, what is the product mix that yields the highest total profit? What is the

resulting profit?