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# Question 1- Bottlenecks

## 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 ore concentrator can process 1200 tonnes/hr
• Time for a trip from pit to crusher = 15 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

## Number of Trips / truck

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

## Number of minutes in a day = 60 x 24 = 1440 minutes

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

1440 = 32 Trips
45

## A tuck can carry 80 tonnes in one trip

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

## Number of tonnes in a day = load in each truck x Total trips in a day

= 80 x 32 = 2560 tonnes

## Minimum number of trucks required in a day = Total output of concentrated ore

Number of tonnes in a day

= 24,000 / 2560
= 9.3750 ≈ 10 trucks
b) Percent Utilization

## i. Percentage utilization of shovels:

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 hours in a day = 24 hrs.

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.

## Every 45 minutes one load of 80 tonnes by one truck

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

## Percentage utilization of trucks: (Actual capacity ÷ Maximum capacity) * 100

Where actual capacity = 24,000

## No. of operational Crushers at any given time = 2

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

## Output of the concentrator in hour = 1200 tonnes

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

## Thus: = (24,000 ÷ 28,800) x 100 = 83.33%

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.

## No. of operational Crushers at any given time = 3

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

## Thus: = (24,000 ÷ 37,440) * 100 = 64.10% utilization

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

## b) Calculating the minimum number of workstations, ignoring precedence

requirement and idle time

## Total task time = 90 seconds

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

## Thus, = (1000 x 1.5) / 450 = 3.33 ≈ 4 workstations

c) Calculating the control cycle time for assembly process

## = (60 x 450) / 1000 = 27 seconds.

d) Line Balancing

22 22 24 22

e) Idle Time

## Idle time = total time – required time

= 1800 – 1500 = 300 minutes

## Overall percentage idle time = (idle time / total time) x 100

(300 / 1800) x 100 = 16.66%

## ii. The percentage idle time at each workstation

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

Therefore,

Work station 1:

Workstation 2:

Workstation 3:

Workstation 4:

## Question 3 – Quality Control

Data: mean = μ population = Χ =1.00

## Standard deviation= σ population = 0.0035

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

## Standard deviation= σx = σ = 0.0035 = 0.00078

√n √20

b) 3σ control limits

## UCL (Upper Control Limits) =Χ + 3σ sample

= 1.00 + 3(0.00078)
= 1.00234

## LCL (Lower Control Limits) =Χ - 3σ sample

= 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

## The Control Chart:

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.

## Question 4- Workers Method

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

## S.no Worker Machine 1 Machine 2

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

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

## =195 units / day / worker

b) Reduction time

## (i) 115% of Standard pay; (i.e. 15% bonus)

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

## New Process Cycle 115% of Standard pay.

S.no Worker Machine 1 Machine 2
1 Running time = 1.65
M1 = 0.25 time by M1 = 0.25 Reduction
0.23 time by
2 0.23
M1 = 0.30 M1 = 0.3

## 3 Internal time M1= 0.40 Running time M1 = 1.90

4 Internal time M2 = 0.52
5 Idle time = 0.30
6 Reduction
M2 = 0.30 Reduction in M2 = 0.30
in time
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

## (ii) 130% of Standard pay; (i.e. 45% bonus)

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

## b) Normal completion for the project

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

## d) Over time management

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.

## e) Action to avoid activity F delay

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.

## Question 6- Inventory Control

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

## ordering EOQ = (D/Q)*S + (Q/2)*H

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

= 218.94 + 218.5

= \$437.44

## Ordering lots of 100 = (D/Q)*S + (Q/2)*H

= 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.