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OPERATIONS MANAGEMENT
Assignment

Radhika Agarwal
MBA07105
Section -C

Submitted to - Professor Bhavin Shah

 TWI Industries: Steering Arm

Takt Time

Given:

• 20 days per month

• 2 shifts of 8 hours each, i.e.; 16 hours
• Two 15 min breaks per shift, i.e.; 1 hour per day
• Demand = 24000 pieces per month
Therefore, available time per month = (16 – 1) * 20
= 300 hrs per month = 1080000 sec per month
Takt time = Available time per month/ demand per month = 108000/24000 = 45 seconds per
piece

Is it better for TWI to build for a finished goods supermarket or for direct shipping?

20 lengths * 2 diameters * 3 types of end fittings * 2 ends = 20*2*3*2

= 240 product types.
Finished product variety = 20 lengths * 2 diameters * 3 types of end fittings * 2 ends
= 20*2*3*2
= 240 product types (plus any colour variations)
This is a lot of variety to keep in a supermarket, hence 240 locations would be required.
Also, if we can reduce the lead time to less than two weeks, we will be certain that the
customer order will be fulfilled.
As a result, we should strive to construct direct-to-shipment structures.

Where can we use continuous flow manufacturing?

We have 195 seconds of work in Assembly. This is divided among six employees.
So, if the work elements are evenly distributed, we can get a cycle time of 32.5 seconds.
With 5 workers, we should be able to split the work elements and achieve a cycle time of 39
seconds if we are careful. This is done within Takt time limit. This will be the second cell.
Weld 1, Weld 2, and Deflash all have machine cycle times of 30 seconds and operator cycle
times of 10 seconds.
As a result, we can combine these and run the cell using only one operator.
This will be the first cell.

Supermarket pull system

Cutting process is a Shared facility, therefore, this process would require a supermarket pull
system.

This system would also be required for Machining of Forgings, as it is completely automated
machine work and hence has longer set up time but faster cycle time.

Apart from supermarket pull system, FIFO lines can be implemented between the Units (1 &
2) and Painting process and between Unit 2 and Shipping process as well.

Scheduling production at one point (Pacemaker process)

Unit 1, ie; Weld 1 + Weld 2 + Deflash, will be the Pacemaker process as it can set the pace
for all upstream processes. Plus, all supermarket pull systems is upstream of Unit 1, hence,
the assignment of Unit 1 as Pacemaker process is apt and material transfer downstream to
pacemaker will be in flow

Levelling production mix

We will be using Heijunka box, that is, the levelling box at Unit 1 (Pacemaker process)
1 Kanban is for 5 arms (Given: 5 steering arms per box)
1 Kanban = Pitch = (1*5) * 45 seconds = 3.75 minutes (meaning Heijunka box visited every
3.75 minutes)
Minimum customer order is 25, ie; 5 Kanbans can be released at once
Therefore, 5 Kanbans = Pitch = (5*5) * 45 seconds = 18.75 minutes, which makes more
sense than 3.75 minutes