Comparision of Line-A Options

Daily Capacity = 360 units/day

New Requirement = 420 units/day

Option-1 Overtime in the existing set-up

Overtime Hours #REF! Hours
Overtime cost ? 245 Rupees per day
420 Rupees per day for 2 hour OT payment

Option-2: Re-design or Re-balance the existing line with more number of labors

Worker Worker1 Worker2 Worker3 Worker4 Worker5 Worker6 Worker7 Worker8 Worker9
Activities 2 1,5 4,7 3,8 12,11,6 16,9,15 13 10 14
Work Content 50 50 60 60 60 60 50 40 50

Bottleneck CT ? 60 seconds per unit

Daily Capacity ? 420 units per day
Line-efficiency ? 88.89 percentage =Workcontent per unit / (no . Of workers * CT)
Additional Workers? 2 workers
Cost of Additional Workers:
Training cost? 12000 one time cost
Regular wages? 288 Rs. per day

Choice Between Option-1 and Option-2? option-1 as it is cheaper . Assuming payment of OT for 1.167 Hours only.
Assume payment of OT for 2 Hours then which option is better?
Daily savings in Option-2 over Option-1 132 Rs/ day
Time required to recover training cost? 90.91 days
Recommendation? If new requirement would continue for more than 91 days then Option-2 Is better
else option-1 is better….
Option-3: Re-design or Re-balance the existing line with more number of labors, Using Paralel Workstations

Worker Worker1 Worker7

Activities 1,2,3 12,13,16
Work Content 120 Worker3 Worker4 Worker5 Worker6 120
Unit-1,3,5,7 4,6 5,7,8,9 10,11 14,15 Unit-1,3,5,7
Worker2 60 60 60 60 Worker8
1,2,3 12,13,16
120 120
Unit-2,4,6,8 Unit-2,4,6,8
Effective CT =120/2workers = 60 seconds per unit

Bottleneck CT ? 60 seconds per unit

Daily Capacity ? 420 units per day
Line-efficiency ? 100 Percent
Additional Workers? 1
Cost of Additional Workers:
Training Cost? 6000 Rs
Regular wages? 144 Rs
Any other cost?

Which is the best option ? Option-1 or Option-2, or Option-3 ? And Why???

Option-3 is better… Reasons: 100% line efficiency, and Cheaper than Opt-1 and Opt-2.

Release
Unit time worker-1 worker-2
1st 0 120
2nd 60 180 60
3rd 120 240 60
4th 180 300 60