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EXAMPLE .1 Managers at the First Community Bank are attempting to shorten the time it takes customers with approved loan applications to get their paperwork processed. The flowchart for this process, consisting of several different activities, each performed by a different bank employee, is shown in Figure 7.1. Approved loan applications first arrive at activity or step 1, where they are checked for completeness and put in order. At step 2, the loans are categorized into different classes according to the loan amount and whether they are being requested for personal or commercial reasons. While credit checking commences at step 3, loan application data are entered in parallel into the information system for recordkeeping purposes at step 4. Finally, all paperwork for setting up the new loan is finished at step 5. The time taken in minutes is given in parentheses.

**Identifying the Bottleneck
**

Check for credit rating (15 min)

Check loan documents and put them order (15 min)

Categorize loans (20 min)

Complete paperwork for new loan (10 min)

Enter loan application into the system (12 min) Figure 1 ± Processing Credit Loan Applications at First Community Bank

Which single step is the bottleneck? The management is also interested in knowing the maximum number of approved loans this system can process in a 5-hour work day.

**Identifying the Bottleneck
**

SOLUTION We define the bottleneck as step 2, where a single-minute reduction in its time reduces the average throughput time of the entire loan approval process. The throughput time to complete an approved loan application is 15 + 20 + max(15, 12) + 10 = 60 minutes. Although we assume no waiting time in front of any step, in practice such a smooth process flow is not always the case. So the actual time taken for completing an approved loan will be longer than 60 minutes due to nonuniform arrival of applications, variations in actual processing times, and the related factors. The capacity for loan completions is derived by translating the ³minutes per customer´ at the bottleneck step to ³customer per hour.´ At First Community Bank, it is 3 customers per hour because the bottleneck step 2 can process only 1 customer every 20 minutes (60/3).

Identifying the Bottleneck Services may not have simple line flows and demand may vary considerably Bottlenecks can be identified by using average utilization Variability creates floating bottlenecks Variability increases complexity .

After T1. Type A customers proceed to step T2 and then to any of the three workstations at T3.Application 1 Two types of customers enter Barbara¶s Boutique shop for customized dress alterations. After step T1. a. assuming no Type A customers? . what is the average capacity? c. followed by steps T4 and T7. assuming there are no Type B customers in the shop? Where would Type B customers have to wait. The numbers in the parentheses are the minutes it takes that activity to process a customer. When would Type A customers experience waiting lines. If 30 percent of the customers are Type A customers and 70 percent are Type B customers. What is the capacity per hour of Type A customers? b.Type B customers proceed to step T5 and then steps T6 and T7.

33 customers per hour. The bottleneck for type A customers is the step with the highest processing time per customer.74 customer per hour. T4. T3 has three work stations and a capacity of (60/14) + (60/10) + (60/11) = 15. step T2 can process (60/13) = 4. For Type A customers.62 customers per hour. Step T4 can process (60/18) = 3. .Application 1 T3-a (14) T2 (13) T3-b (10) T3-c (11) T5 (15) T6 (22) T4 (18) T7 (10) Type A T1 (12) Type A or B? Type B a.

73) = 2.73 customers per hour.33) + 0. Thus the average capacity is 0.3(3. The capacity for Type B customers is (60/22) = 2.Application 1 T3-a (14) T2 (13) T3-b (10) T3-c (11) T5 (15) T6 (22) T4 (18) T7 (10) Type A T1 (12) Type A or B? Type B b. The bottleneck for Type B customers is T6 since it has the longest processing time per customer.7(2.9 customers per hour .

Type A customers would wait before T2 and T4 because the activities immediately preceding them have a higher rate of output. This assumes there are always new customers entering the shop. .Application 1 T3-a (14) T2 (13) T3-b (10) T3-c (11) T5 (15) T6 (22) T4 (18) T7 (10) Type A T1 (12) Type A or B? Type B c. Type B customers would wait before steps T5 and T6 for the same reason.

and Z) using a small batch process. Figure 7. Y. X. C. Diablo can make and sell up to the limit of its demand per week. Each workstation is staffed by a worker who is dedicated to work a single shift per day at an assigned workstation. and no penalties are incurred for not being able to meet all the demand. and D) that are fabricated and assembled in five different workstations (V. Batch setup times have been reduced to such an extent that they can be considered negligible.Identifying the Bottleneck EXAMPLE 2 Diablo Electronics manufactures four unique products (A. Which of the five workstations (V. B. Y. or Z) has the highest utilization.2 is a flowchart of the manufacturing process. X. W. W. and thus serves as the bottleneck for Diablo Electronics? .

and D . C.Identifying the Bottleneck Product A $5 Step 1 at workstation V (30 min) Step 2 at workstation Y (10 min) Finish with step 3 at workstation X (10 min) Product: A Price: $75/unit Demand: 60 units/wk Raw materials $5 Product B $3 Step 1 at workstation Y (10 min) Finish with step 2 at workstation X (20 min) Purchased parts Product: B Price: $72/unit Demand: 80 units/wk Raw materials Product C $2 Step 1 at workstation W (5 min) Step 2 at workstation Z (5 min) Step 3 at workstation X (5 min) $2 Purchased parts Finish with step 4 at workstation Y (5 min) Product: C Price: $45/unit Demand: 80 units/wk Raw materials Product D $4 Step 1 at workstation W (15 min) Step 2 at workstation Z (10 min) $3 Purchased parts Finish with step 3 at workstation Y (5 min) Product: D Price: $38/unit Demand: 100 units/wk Raw materials $6 Purchased parts Figure 2 Flowchart for Products A. B.

with one worker per machine at each step in the process.Identifying the Bottleneck SOLUTION Because the denominator in the utilization ratio is the same for every workstation. These loads are summed across all products going through a workstation to arrive at the total load for the workstation. The firm wants to satisfy as much of the product demand in a week as it can. Multiplying the processing time at each station for a given product with the number of units demanded per week yields the workload represented by that product. which is then compared with the others and the existing capacity of 2. .400 minutes. we can simply identify the bottleneck by computing aggregate workloads at each workstation. Each week consists of 2.400 minutes of available production time.

Identifying the Bottleneck Workstation V W X Y Z Load from Product A Load from Product B Load from Product C Load from Product D Total Load (min) .

Identifying the Bottleneck Workstation V W X Y Z Load from Product A 60 v 30 = 1800 0 60 v 10 = 600 60 v 10 = 600 0 Load from Product B 0 0 80 v 20 = 1.600 80 v 10 = 800 0 Load from Product C 0 80 v 5 = 400 80 v 5 = 400 80 v 5 = 400 80 v 5 = 400 Load from Product D 0 100 v 15 = 1.500 0 100 v 5 = 500 100 v 10 = 1.600 2. .900 2.000 Total Load (min) 1.300 1. because the aggregate work load at X exceeds the available capacity of 2.800 1.400 minutes per week.400 These calculations show that workstation X is the bottleneck.

X. Each of the products visits every one of the four workstations. and thus serves as the bottleneck for O¶Neill Enterprises? . C) that are fabricated and assembled in four different workstations (W. Which of the four workstations W. though not necessarily in the same order.Application 2 O¶Neill Enterprises manufactures three unique products (A. Z) using a small batch process. or Z has the highest total workload. and is paid $12 per hour. A flowchart of the manufacturing process is shown below. Each workstation is staffed by a worker dedicated to work on that workstation alone. X. and there are no penalties for not being able to meet all the demand. Y. Variable overhead costs are $8000/week. or 40 hours/week. O¶Neill can make and sell up to the limit of its demand per week. Y. The plant operates one 8-hour shift per day. Batch setup times are negligible. B.

B. and C Product A Step 1 at workstation W (10 min) Step 2 at workstation Y (15 min) Step 3 at workstation X (9 min) Finish with step 4 at workstation Z (16 min) Product: A Price: $90/unit Demand: 65 units/wk $7 Raw materials $6 Purchased part Product B $9 Step 1 at workstation X (12 min) Step 2 at workstation W (10 min) Step 3 at workstation Y (10 min) Finish with step 4 at workstation Z (13 min) Product: B Price: $85/unit Demand: 70 units/wk Raw materials $5 Purchased part Product C $10 Step 1 at workstation Y (5 min) Step 2 at workstation X (10 min) Step 3 at workstation W (12 min) Finish with step 4 at workstation Z (10 min) Product: C Price: $80/unit Demand: 80 units/wk Raw materials $5 Purchased part .Application 2 Flowchart for Products A.

Each week consists of 2400 minutes of available production time.Application 2 SOLUTION Identify the bottleneck by computing total workload at each workstation. The firm wants to satisfy as much of the product demand in a week as it can. Multiplying the processing time at each station for a given product with the number of units demanded per week yields the capacity load. . These loads are summed across all products going through that workstation and then compared with the existing capacity of 2400 minutes.

Application 2 Work Station W X Y Z Load from Product A Load from Product B Load from Product C Total Load (minutes) .

because the aggregate work load at Z exceeds the available capacity of 2400 minutes per week.Application 2 Work Station W X Y Z Load from Product A (65x10)= 650 (65v9)= 585 (65v15)= 975 (65v16)= 1040 Load from Product B (70v10)= 700 (70v12)= 840 (70x10)= 700 (70v13)= 910 Load from Product C (80v12)= 960 (80v10)= 800 (80x5)= 400 (80v10)= 800 Total Load (minutes) 2310 2225 2075 2750 These calculations show that workstation Z is the bottleneck. .

Currently. and so on until no more capacity is available. Consequently. The plant operates one 8-hour shift per day.Determining the Product Mix EXAMPLE 3 The senior management at Diablo Electronics (see Exercise 7. followed by the next highest contribution margin product.2) wants to improve profitability by accepting the right set of orders. and so collected some additional financial data. decisions are made using the traditional method. or 40 hours each week. which is to accept as much of the highest contribution margin product as possible (up to the limit of its demand). regardless of how much the worker is used. Each worker is paid $18 per hour and is paid for an entire week.500 per week. . Variable overhead costs are $8. labor costs are fixed expenses.

He believes that profitability can indeed be improved if bottleneck resources were exploited to determine the product mix.Determining the Product Mix Pedro Rodriguez. is knowledgeable about the theory of constraints and bottleneckbased scheduling. instead of the traditional method used by Diablo Electronics. the newly hired production supervisor. What is the change in profits if. . the bottleneck method advocated by Pedro is used to select the product mix? SOLUTION Decision Rule 1: Traditional Method Select the best product mix according to the highest overall contribution margin of each product.

Determining the Product Mix Step 1: Calculate the contribution margin per unit of each product as shown here. A Price Raw material and purchased parts = Contribution margin B C D .

00 C $45.00 D $38. .Determining the Product Mix Step 1: Calculate the contribution margin per unit of each product as shown here.00 When ordered from highest to lowest.00 $65. D.00 B $72. A.00 $28.00 $67.00 ±5.00 ±10.00 $40.00 ±10. A Price Raw material and purchased parts = Contribution margin $75.00 ±5. C. the contribution margin per unit sequence of these products is B.

W. X. Work Center V W X Y Z Minutes at the Start Minutes Left After Making 80 B Minutes Left After Making 60 A Can Only Make 40 C Can Only Make 100 D . Satisfy each demand until the bottleneck resource (workstation X) is encountered. and Z to the products in the order decided in step 1.Determining the Product Mix Step 2: Allocate resources V. Y.400 minutes available for each week at each stage. Subtract minutes away from 2.

400 2.200 Can Only Make 100 D 600 700 0 300 1.400 Can Only Make 40 C 600 2. 40 C.200 The best product mix according to this traditional approach is then 60 A. Y.600 2. Subtract minutes away from 2. and 100 D.400 2.400 Minutes Left After Making 60 A 600 2.400 800 1.Determining the Product Mix Step 2: Allocate resources V.000 2.400 2.400 minutes available for each week at each stage. 80 B.400 2. .400 Minutes Left After Making 80 B 2. Work Center V W X Y Z Minutes at the Start 2. and Z to the products in the order decided in step 1. W.200 0 800 2.400 2.400 200 1. X. Satisfy each demand until the bottleneck resource (workstation X) is encountered.

Profits Revenue Materials Labor Overhead Profit .Determining the Product Mix Step 3: Compute profitability for the selected product mix.

200 ±$3. Profits Revenue Materials Labor Overhead Profit (60 v $75) + (80 v $72) + (40 v $45) + (100 v $38) (60 v $10) + (80 v $5) + (40 v $5) + (100 v $10) (5 workers) v (8 hours/day) v (5 days/week) v ($18/hour) = = = = = $15. 40 C.Determining the Product Mix Step 3: Compute profitability for the selected product mix.560 Manufacturing the product mix of 60 A. and 100 D will yield a profit of $1.500 $1. .600 ±$8.860 ±$2. 80 B.560 per week.

Determining the Product Mix Decision Rule 2: Bottleneck Method Select the best product mix according to the dollar contribution margin per minute of processing time at the bottleneck workstation X. Step 1: Calculate the contribution margin/minute of processing time at bottleneck workstation X: . This method would take advantage of the principles outlined in the theory of constraints and get the most dollar benefit from the bottleneck.

Determining the Product Mix Product A Contribution margin Time at bottleneck Contribution margin per minute Product B Product C Product D .

35 Product C $40.50 Product B $67.Determining the Product Mix Product A Contribution margin Time at bottleneck Contribution margin per minute $65. B.00 Product D $28.00 20 minutes $3. A. the manufacturing sequence of these products is D. . which is reverse of the earlier order. Product D is scheduled first because it does not consume any resources at the bottleneck. C.00 10 minutes $6.00 5 minutes $8.00 0 minutes Not defined When ordered from highest to lowest contribution margin/ minute at the bottleneck.

Subtract minutes away from 2. W. X. and Z to the products in the order decided in step 1.Determining the Product Mix Step 2: Allocate resources V. Satisfy each demand until the bottleneck resource (workstation X) is encountered. Y.400 minutes available for each week at each stage. Work Center V W X Y Z Minutes at the Start Minutes Left After Making 80 B Minutes Left After Making 60 A Can Only Make 40 C Can Only Make 100 D .

.400 500 2.400 Minutes Left After Making 80 B 2.400 Minutes Left After Making 60 A 2.500 1. X. 80 C.400 2.000 The best product mix according to this bottleneck based approach is then 60 A.Determining the Product Mix Step 2: Allocate resources V.400 minutes available for each week at each stage. Satisfy each demand until the bottleneck resource (workstation X) is encountered.400 2.400 900 1.400 2.000 1. Y. and Z to the products in the order decided in step 1. W.000 Can Only Make 40 C 600 500 1. Work Center V W X Y Z Minutes at the Start 2.400 2. 70 B.400 1. Subtract minutes away from 2.000 Can Only Make 100 D 600 500 0 200 1.400 900 2. and 100 D.900 1.

Determining the Product Mix Step 3: Compute profitability for the selected product mix. Profits Revenue Materials Labor Overhead Profit .

500 $2. Profits Revenue Materials Labor Overhead Profit (60 v $75) + (70 v $72) + (80 v $45) + (100 v $38) (60 v $10) + (70 v $5) + (80 v $5) + (100 v $10) (5 workers) v (8 hours/day) v (5 days/week) v ($18/hour) = = = = = $16.600 ±$8. 80 C.940 ±$2. 70 B.350 ±$3.Determining the Product Mix Step 3: Compute profitability for the selected product mix. . and 100 D will yield a profit of $2.490 per week.490 Manufacturing the product mix of 60 A.

She believes that profitability can indeed be approved if bottleneck resources were exploited to determine the product mix. the product mix must be chosen carefully. What is the change in profits if instead of the traditional method that O¶Neill has used thus far. Currently. and so on until no more capacity is available.Application 3 The senior management at O¶Neill Enterprises wants to improve the profitability of the firm by accepting the right set of orders. decisions are made to accept as much of the highest contribution margin product as possible (up to the limit of its demand). a bottleneck based approach advocated by Jane is used instead for selecting the product mix? . followed by the next highest contribution margin product. Jane Hathaway. the newly hired production supervisor. Since the firm cannot satisfy all the demand. is knowledgeable about the theory of constraints and bottleneck based scheduling.

Select the best product mix according to the highest overall profit margin of each product.Application 3 SOLUTION Decision rule 1: Traditional method . Step 1: Calculate the profit margin per unit of each product as shown below A Price Raw Material & Purchased Parts Labor = Contribution Profit Margin B C .

60 When ordering from highest to lowest.00 C $80.00 ±15. the profit margin per unit order of these products is ABC.00 $62. . Step 1: Calculate the profit margin per unit of each product as shown below A Price Raw Material & Purchased Parts Labor = Contribution Profit Margin $90.00 ±14.00 $67.Select the best product mix according to the highest overall profit margin of each product.00 ±10.00 ±9.Application 3 SOLUTION Decision rule 1: Traditional method .00 B $85.40 $57.00 ±13.00 ±7.

Work Center W X Y Z Starting After 65 A After 70 B Can Only Make 45 C . Subtract minutes away from 2400 minutes available for each week at each stage.Application 3 Step 2: Allocate resources W. Y. Satisfy each demand until the bottleneck resource (workstation Z) is encountered. and Z to the products in the order decided in step 1. X.

Satisfy each demand until the bottleneck resource (workstation Z) is encountered. 70 B. and Z to the products in the order decided in step 1. Subtract minutes away from 2400 minutes available for each week at each stage. Work Center W X Y Z Starting 2400 2400 2400 2400 After 65 A 1750 1815 1425 1360 After 70 B 1050 975 725 450 Can Only Make 45 C 510 525 500 0 The best product mix is 65 A. and 45 C . Y. X.Application 3 Step 2: Allocate resources W.

Profits Revenue Materials Overhead Labor Profit .Application 3 Step 3: Compute profitability for the selected product mix.

70 B.Application 3 Step 3: Compute profitability for the selected product mix. and 45 C will yield a profit of $2980. . Profits Revenue Materials Overhead Labor Profit $15400 ±$2500 ±$8000 ±$1920 $2980 Manufacturing the product mix of 65 A.

Select the best product mix according to the dollar contribution per minute of processing time at the bottleneck workstation Z. Step 1: Calculate the contribution/minute of processing time at bottleneck workstation Z: Product A Contribution Margin Time at Bottleneck Contribution Margin per minute Product B Product C .Application 3 Decision rule 2: Bottleneck-based approach . This rule would take advantage of the principles outlined in the theory of constraints and get the most dollar benefit from the bottleneck.

the manufacturing sequence of these products is CBA.76 When ordering from highest to lowest contribution margin/minute at the bottleneck.Application 3 Decision rule 2: Bottleneck-based approach . This rule would take advantage of the principles outlined in the theory of constraints and get the most dollar benefit from the bottleneck.60 10 minutes 5.00 13 minutes 4.Select the best product mix according to the dollar contribution per minute of processing time at the bottleneck workstation Z. .00 16 minutes 4.77 Product C $57. Step 1: Calculate the contribution/minute of processing time at bottleneck workstation Z: Product A Contribution Margin Time at Bottleneck Contribution Margin per minute $67.19 Product B $62. which is reverse of the traditional method order.

Subtract minutes away from 2400 minutes available for each week at each stage. Satisfy each demand until the bottleneck resource (workstation Z) is encountered. and Z to the products in the order decided in step 1.Application 3 Step 2: Allocate resources W. Y. Work Center W X Y Z Starting After 80 C After 70 B Can Only Make 43 A . X.

and 80C . 70B. Subtract minutes away from 2400 minutes available for each week at each stage. Work Center W X Y Z Starting 2400 2400 2400 2400 After 80 C 1440 1600 2000 1600 After 70 B 740 760 1300 690 Can Only Make 43 A 310 373 655 2 The best product mix is 43A. Y. and Z to the products in the order decided in step 1. Satisfy each demand until the bottleneck resource (workstation Z) is encountered.Application 3 Step 2: Allocate resources W. X.

The new profitability figures are shown below based on the new production quantities of 43A. Profits Revenue Materials Overhead Labor Profit .Application 3 Step 3: Compute profitability for the selected product mix. and 80C. 70B.

Application 3 Step 3: Compute profitability for the selected product mix. . The new profitability figures are shown below based on the new production quantities of 43A. and 80C. Profits Revenue Materials Overhead Labor Profit $16220 ±$2739 ±$8000 ±$1920 $3561 Manufacturing the product mix of 43 A. and 80 C will yield a profit of $3561. 70B. 70 B.

which is the rate at which the bottleneck controls the throughput of the entire plant .Drum-BufferDrum-Buffer-Rope Systems The bottleneck schedule is the drum because it sets the beat or the production rate for the entire plant and is linked to market demand The buffer is the time buffer that plans early flows into the bottleneck and thus protects it from disruption The rope represents the tying of material release to the drum beat.

Drum-BufferDrum-Buffer-Rope Systems Nonconstraint Material Release Schedule PROCESS A Capacity 800 units/wk Constraint Buffer Time Buffer Inventory CCR (Bottleneck) PROCESS B Capacity 800 units/wk Rope Buffer Drum Nonconstraint PROCESS C Capacity 700 units/wk Shipping Buffer Finished Goods Inventory Shipping Schedule Market Demand 650 units/wk Figure 3 ± Drum-Buffer-Rope Systems .

A Line Process Line Balancing Assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations Achieving the goal is similar to the theory of constraints but it differs in how it addresses bottlenecks Precedence diagram ± AON network .

G Bolt leg frame to hopper Insert impeller shaft Attach axle Attach agitator Attach drive wheel Attach free wheel Mount lower post Attach controls Mount nameplate 40 30 50 40 6 25 15 20 18 Total 244 . Inc. E F. construct a precedence diagram for the Big Broadcaster. is designing an assembly line to produce a new fertilizer spreader.Precedence Diagram EXAMPLE 4 Green Grass.. Time Immediate Work Description Element A B C D E F G H I (sec) Predecessor(s) None A A B B C C D. Using the following information on the production process. the Big Broadcaster. a manufacturer of lawn and garden equipment.

Next. which has no immediate predecessors. element I must F 40 await completion of C 25 elements F and G. we add elements B and C. and so on. 50 I G Figure 4 ± Precedence Diagram for Assembling the Big Broadcaster 15 18 . We begin with work element A. we add elements D and E. for which element A is the only immediate predecessor. After entering time standards and arrows showing precedence. Work element F. H 40 B for example. 6 A However.Precedence Diagram SOLUTION Figure 4 shows the complete diagram. The diagram simplifies D interpretation. can be done 20 anywhere on the line after E 30 element C is completed.

A Line Process The desired output rate is matched to the staffing or production plan Cycle time is the maximum time allowed for work at each station is 1 c= r where c = cycle time in hours r = desired output rate .

A Line Process The theoretical minimum number of stations is 7t TM = c where 7t = total time required to assemble each unit .

and balance delay Idle time = nc ± 7t where n = number of stations 7t Efficiency (%) = nc (100) Balance delay (%) = 100 ± Efficiency . efficiency.A Line Process Idle time.

What would be the line¶s efficiency? . What is the smallest number of workstations that she could hope for in designing the line for this cycle time? c. What should be the line¶s cycle time? b. a. Efficiency EXAMPLE 5 Green Grass¶s plant manager just received marketing¶s latest forecasts of Big Broadcaster sales for the next year.Calculating Cycle Time. Suppose that she finds a solution that requires only five stations. The plant will operate 40 hours per week. TM.400 spreaders per week for at least the next 3 months. She wants its production line to be designed to make 2.

Efficiency SOLUTION a. Then the cycle time is c = 1/r = 1/60 (hr/unit) = 1 minute/unit = 60 seconds/unit b. First convert the desired output rate (2. 7t.400 units per week) to an hourly rate by dividing the weekly output rate by 40 hours per week to get units per hour. by the cycle time. c = 60 seconds. Now calculate the theoretical minimum for the number of stations by dividing the total time. we have 7t 244 seconds = = 4. Assuming perfect balance.067 or 5 stations TM = c 60 seconds . TM.Calculating Cycle Time.

assuming for now that one can be found: 7t 244 Efficiency = (100) = = 81. Now calculate the efficiency of a five-station solution. Efficiency c.3% nc 5(60) .Calculating Cycle Time. TM.

The number of workstations required is minimized 2. but less than) the cycle time for the line Trial-and-error can be used but commercial software packages are also available The decision rules used by POM for Windows are described in Table 7. The precedence and cycle-time requirements are not violated The work content for each station is equal (or nearly so.Finding a Solution The goal is to cluster the work elements into workstations so that 1.3 .

G.Finding a Solution TABLE 3 | | HEURISTIC DECISION RULES IN ASSIGNING THE NEXT WORK ELEMENT TO A WORKSTATION BEING CREATED Create one station at a time. identify the unassigned work elements that qualify for assignment: They are candidates if 1. Shortest work element Most followers Fewest followers . This rule seeks to maintain flexibility so that good choices remain for creating the last few workstations at the end of the line. 2. choose the element that has the most followers (due to precedence requirements). Picking the candidate with the fewest followers is the opposite of the most followers rule. In Figure 7. and I) whereas item D has only one follower (H). leaving the ones with short times to ³fill out´ the station. When picking the next work element to assign to a station being created. Decision Rule Longest work element Logic Picking the candidate with the longest time to complete is an effort to fit in the most difficult elements first.4. This rule is the opposite of the longest work element rule because it gives preference in workstation assignments to those work elements that are quicker. It might provide another solution for the planner to consider. For the station now being created. Adding them to the workstation being created will not create a workload that exceeds the cycle time. It can be tried because no single rule guarantees the best solution. item C has three followers (F. All of their predecessors have been assigned to this station or stations already created.

so Figure 5 represents an optimal solution to the problem D B 30 A 40 C 50 G 15 Figure 5 ± Big Broadcaster Precedence Diagram Solution F 25 I 18 40 E 6 H 20 .Finding a Solution The theoretical minimum number of workstations is 5 and the cycle time is 60 seconds.

Application 3 A plant manager needs a design for an assembly line to assembly a new product that is being introduced. H I F. The time requirements and immediate Immediate Work Element Time (sec) Predecessor predecessors for the A 12 work elements are B 60 A as follows: C D E F G H I J K Total = 36 24 38 72 14 72 35 60 12 435 G. J C. E . D B.

F. J.Application 3 Draw a precedence diagram. E G. J G I Total = 435 H . H I F. and K Work Element A B C D E F G H I J K Time (sec) 12 60 36 24 38 72 14 72 35 60 12 Immediate Predecessor A A B F D E J K C C. D B. complete I.

what are the cycle time and theoretical minimum? 1 c= r = 1 (3600) = 120 sec/unit 30 7t 435 TM = c = = 3.6 120 or 4 stations .Application 3 If the desired output rate is 30 units per hour.

efficiency.6 = 9.Application 3 Suppose that we are fortunate enough to find a solution with just four stations. and the balance delay for this solution? Idle time = nc ± 7t = 4(120) ± 435 = 45 seconds Efficiency (%) = 7t 435 nc (100) = 480 (100) = 90.6% Balance delay (%) = 100 ± Efficiency = 100 ± 90. What is the idle time per unit.4% .

Application 3 Using trial and error. one possible solution is shown below. Work Elements Assigned Station 1 2 3 4 5 Cumulative Time Idle Time (c = 120) .

F I. D. one possible solution is shown below. C. G E.Application 3 Using trial and error. J. A B. K Station 1 2 3 4 5 Cumulative Time 120 98 110 107 Idle Time (c = 120) 0 22 10 13 A fifth station is not needed . Work Elements Assigned H.

and grievances can increase after installing production lines The number of models produced complicates scheduling and necessitates good communication Cycle times are dependent on the desired output rate .Managerial Considerations Pacing is the movement of product from one station to the next Behavioral factors such as absenteeism. turnover.

Both wash types are first processed through steps A1 and A2. The Standard wash then goes through steps A3 and A4 while the Deluxe is processed through steps A5. and A7. A6.Solved Problem 1 Bill¶s Car Wash offers two types of washes: Standard and Deluxe. Standard A3 (12) A4 (15) A1 (5) A2 (6) Standard or Deluxe A8 (10) Deluxe A5 (5) A6 (20) A7 (12) . The process flow for both types of customers is shown in the following chart. Both offerings finish at the drying station (A8). The numbers in parentheses indicate the minutes it takes for that activity to process a customer.

assuming that new customers are always entering the shop and that no Deluxe customers are in the shop? Where would the Deluxe customers have to wait. what is the average capacity of the car wash in customers per hour? d. assuming no Standard customers? . What is the capacity (measured as customers served per hour) of Bill¶s Car Wash to process Standard and Deluxe customers? Assume that no customers are waiting at step A1. If 60 percent of the customers are Standard and 40 percent are Deluxe. Where would you expect Standard wash customers to experience waiting lines. A2. or A8. Which step is the bottleneck for the Standard car wash process? For the Deluxe car wash process? b. c.Solved Problem 1 a.

The average capacity of the car wash is (0.6 customers per hour. The capacity for Deluxe car washes is 3 customers per hour (60/20).Solved Problem 1 SOLUTION a. These capacities are derived by translating the ³minutes per customer´ of each bottleneck activity to ³customers per hour. . and Step A6 is the bottleneck for the Deluxe car wash process. Step A4 is the bottleneck for the Standard car wash process. because these steps take the longest time in the flow.60 v 4) + (0.´ c. b.40 v 3) = 3. The capacity for Standard washes is 4 customers per hour because the bottleneck step A4 can process 1 customer every 15 minutes (60/15).

A3. and A4 because the activities that immediately precede them have a higher rate of output (i. smaller processing times). A2.e. Standard wash customers would wait before steps A1. and A6 for the same reasons.. A1 is included for both types of washes because the arrival rate of customers could always exceed the capacity of A1. Deluxe wash customers would experience a wait in front of steps A1.Solved Problem 1 d. A2. .

E. F B B B A G H C. I .Solved Problem 2 A company is setting up an assembly line to produce 192 units per 8-hour shift. and immediate predecessors: Work Element A B C D E F G H I J Time (sec) 40 80 30 25 20 15 120 145 130 115 Total 720 Immediate Predecessor(s) None A D. times. The following table identifies the work elements.

Solved Problem 2

a. What is the desired cycle time (in seconds)? b. What is the theoretical minimum number of stations? c. Use trial and error to work out a solution, and show your solution on a precedence diagram. d. What are the efficiency and balance delay of the solution found? SOLUTION a. Substituting in the cycle-time formula, we get 1 8 hours (3,600 sec/hr) = 150 sec/unit c= r = 192 units

Solved Problem 2

b. The sum of the work-element times is 720 seconds, so

7t TM = c =

720 sec/unit 150 sec/unit-station

= 4.8

or 5 stations

which may not be achievable.

Solved Problem 2

c. The precedence diagram is shown in Figure 7.6. Each row in the following table shows work elements assigned to each of the five workstations in the proposed solution.

Work Element Immediate Predecessor(s) None A D, E, F B B B A G H C, I

D 25 B 80 A 40 G 120 H 145 Figure 7.6 ± Precedence Diagram I 130 E 20 F 15 C 30 J 115

A B C D E F G H I J

Solved Problem 2 B 80 A 40 G 120 D 25 E 20 F 15 H 145 I 130 C 30 J 115 Station S1 Candidate(s) Choice Work-Element Time (sec) Cumulative Time (sec) Idle Time (c= 150 sec) S2 S3 S4 S5 .

E. F. F F. F E. I F C J Choice A B D G E H I F C J Work-Element Time (sec) 40 80 25 120 20 145 130 15 30 115 Cumulative Time (sec) 40 120 145 120 140 145 130 145 30 145 Idle Time (c= 150 sec) 110 30 5 30 10 5 20 5 120 5 S2 S3 S4 S5 . H F. G E.Solved Problem 2 B 80 A 40 G 120 D 25 E 20 F 15 H 145 I 130 C 30 J 115 Station S1 Candidate(s) A B D.

we get Efficiency (%) = 7t 720 sec/unit nc (100) = 5(150 sec/unit) = 96% Thus. Calculating the efficiency. .Solved Problem 2 d. the balance delay is only 4 percent (100±96).

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