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Question 1- Bottlenecks
A mining company has to perform following operations:1. extract the ore; 2. load the ore into trucks; 3. truck the ore to the crusher; 4. crush the ore; 5. concentrate the crushed ore.
Data
• • • • • • • • • • • • • • No. of shovels = 3 All three shovels can operate at the same time Time taken by the each shovel to load the truck = 10 minutes No. of crushing lines = 3 Crushing lines operational at a given time = 2 Maximum output from each crusher = 520 tonnes / hr The o

- no.1
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2. load the ore into trucks;

3. truck the ore to the crusher;

4. crush the ore;

5. concentrate the crushed ore.

Data

• No. of shovels = 3

• All three shovels can operate at the same time

• Time taken by the each shovel to load the truck = 10 minutes

• No. of crushing lines = 3

• Crushing lines operational at a given time = 2

• Maximum output from each crusher = 520 tonnes / hr

• The ore concentrator can process 1200 tonnes/hr

• Total loading time for loading a truck = 10 minutes

• Time for a trip from pit to crusher = 15 minutes

• Time for unloading at the crusher = 10 minutes

• Time for the return trip = 10 minutes

• Each truck can carry 80 tonnes of ore

• Operation time for company = 24 hours a day, 7 days a week

• Production of the company = 24,000 tonnes per day

a) Determine the minimum no of trucks required

Total cycle time for one truck to pick up ore from shovels and depositing them at the

crusher and back to the shovel = 10 + 15 + 10 + 10 = 45 minutes

Total Cycle time for one truck to pick up ore from shovels in a day

One cycle time

Therefore

1440 = 32 Trips

45

Number of round up trips / truck can make in a day = 32

= 80 x 32 = 2560 tonnes

Number of tonnes in a day

= 24,000 / 2560

= 9.3750 ≈ 10 trucks

b) Percent Utilization

Each shovel can load a truck in 10 minutes, and each truck can carry 80 tonnes of load

therefore each shovel can load 80 tonnes in 10 minutes.

Thus, in one hour 1 Shovel can load 6 times 80 tonnes = 480 tonnes (6 * 80).

Similarly

Number of minutes in 24 hours = 24 x 60 = 1440

Every 45 minutes a truck completes one whole cycle from the quarry to the pit.

In 1440 minutes 32 loads of 80 tonnes = 32 x 80 = 2560 tonnes

Where actual capacity = 24,000

Maximum output from both crushers in one hour = 2 x 520 = 1040 tonnes

Total output in a day = 1200 x 24 = 28800 tonnes (maximum capacity)

Shovels = 69.44%

Trucks = 93.75%

Crushers = 96.15%

Concentrator = 83.33%

c) Bottleneck Operation.

The evident bottleneck is the crusher as it has the highest percent utilization recorded as

96.15%.

d) Recommendation

To relieve the bottleneck the system capacity can be increased by repairing the third

crushing line. If all the crushing lines are operated the crusher % utilization can be

reduced. Let us see how this will be done.

Maximum output from all three crushers in one hour = 3 x 520 = 1560 tonnes

As we can see the percent utilization will be reduced by around 32% if all three crushing

lines are operational.

Question 2- Line Balancing

a) Precedence Diagram

A11

D11

G7

B7

C12 E5 F13

H9 I 15

requirement and idle time

No. of workstations = (Total output x total task time) / total operations time

c) Calculating the control cycle time for assembly process

d) Line Balancing

22 22 24 22

e) Idle Time

= 1800 – 1500 = 300 minutes

(300 / 1800) x 100 = 16.66%

[(Process time – cycle time) / cycle time] x 100

Therefore,

Work station 1:

Workstation 2:

Workstation 3:

Workstation 4:

Data: mean = μ population = Χ =1.00

Sample

1 2 3 4 5

1.0050 0.9963 1.0115 0.9875 1.0085

1.0022 0.9995 1.0003 0.9930 0.9803

0.9930 1.0210 0.9915 1.0100 0.9935

0.9895 1.0005 1.0055 1.0003 1.0215

√n √20

b) 3σ control limits

= 1.00 + 3(0.00078)

= 1.00234

= 1.00 - 3(0.00078)

= 0.9977

c) Control Chart

Sample Χ

1 0.9974

2 1.0043

3 1.0022

4 0.9977

5 1.0009

1.0050

1.0043

1.0040

1.0030

UCL

X (mean)

1.0023 1.0022

1.0020

1.0010 1.0009

1.0000

0.9990

0.9980 LCL

0.9977 0.9977

0.9974

0.9970

0 1 2 3 4 5

Sample

The chart shows that X of sample 1 and sample 2 point outside the control limits. The

mean of sample 1 (X = 0.9974) is out of control criterion of LCL = 0.09977 and mean of

sample 2 (X = 1.0043) is out of control criterion of UCL which is equal to 1.0023.

a) Construct a worker-machine bar chart and use it to determine the number of

items that the worker can produce during an eight-hour day at 100% of

standard

1 Unloading M1 = 0.25 Unloading M1 = 0.25 Running time = 1.65

3 Internal time M1= 0.40 Running time M1 = 1.90

4 Internal time M2 = 0.52

Introduce Idle time =

5 Idle time = 0.12

0.30

Unloading M2 = 0.30

6 Unloading M2 = 0.30

Total cycle time = 2.45 Total cycle time = 2.45 Total cycle time = 2.45

% Utilization = 87.76 % Utilization = 100 % Utilization = 95.10

% Idle time = 12.24 % Idle time = 0 % Idle time = 4.90

The total cycle time is calculated as 2.45 min and worker will work (8 hours) 480 min /

per day.

Therefore, number of units produced per day = 480 min / 2.45 min

b) Reduction time

If the bonus of 15% is to be paid, items must be shaped 100 / 115 of the standard time

= 2.13 min

= 0.23 min

= 0.48 min

S.no Worker Machine 1 Machine 2

Unloading Reducing Unloading

1 Running time = 1.65

M1 = 0.25 time by M1 = 0.25 Reduction

0.23 time by

Reloading Reloading

2 0.23

M1 = 0.30 M1 = 0.3

4 Internal time M2 = 0.52

5 Idle time = 0.30

Unloading Unloading

6 Reduction

M2 = 0.30 Reduction in M2 = 0.30

in time

Reloading time by 0.48 Reloading

7 by 0.48

M2 = 0.38 M2 =0.38

8 Total cycle time = 2.45 Total cycle time = 2.45 Total cycle time = 2.45

If the bonus of 30% is to be paid, items must be processed 100 / 130 of the standard time

(2.45 min).

= 1.88 min

= -0.02

C1 F4

A2 H4 J3

critical path

D4 G7 L6

B4 E1 I6 K5

Because of critical path is the longest part in the project and total calendar time for

required project, therefore normal completion time for the project is however total

time for accomplishing the critical path in this project.

Normal completion time = A + D + G + H + J + L

=2+4+7+4+3+6

= 26 weeks

A–D–G–H–J–L

The Manager has signed the contract to complete the project in 24 weeks, with a

penalty cost of $325 for every week over 24. The normal completion time is 26

weeks. This means that the manager exceeds by two weeks as against the contract.

The total penalty for two weeks is $650 (325 *2). If the manager has to use the

overtime at all then has to choose the activity where extra cost of overtime per week

is lowest and where length activity can be shortened. Thus the manager should use

overtime at activity D and H where the cost of overtime is $275 and $300

respectively. This way the total cost would be $575 and the manager will save $75 by

not paying the penalty cost of $650.

If the activities outside the critical path getting slow down (within limits), total

project time does not change. Similarly, if the manager found that equipment was

causing activity F to be delayed an extra two weeks, it would affect to the other

schedule activity and target completion time of the whole project. It is because

activity G still will take longer time to be complete than activity F with extra 2 weeks

in order to continue to the next activity, that is H. Therefore the manager should not

take any actions against activity F.

Data

D= annual demand in units for inventory item = 40x52= 2080 units

(a) E.O.Q =

2x D x S

H

= 2 x 2080 x $10

$4.60

= 95 units

No. of units

= 2080 units

95 units

= 2080/95*10 + 95/2*4.6

= 218.94 + 218.5

= $437.44

= 2080/100*10 + 100/2*4.6

= 208 + 230

= $438

(e) The clerk’s policy of adopting the policy of ordering through EOQ will be

better because the total cost is with EOQ is slightly lower than total cost

with lots of 100. The holding cost through EOQ is also lower as compared

to that of lots of 100 and is helpful for companies which hold and stock

larger inventories for their operations. The EOQ model also gives

reasonable answers with better accuracy even when there is variation in

variables such as setup costs, holding costs, demand or even the EOQ

while calculating the total cost.

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