MKF is a farming manufacturer. The product consist of two components A and B. Co

Question

MKF is a farming manufacturer. The product consist of two components A and B. Component A requires a press operation by one of the presses in the Press Area and then is sent to the assembly area Component B requires a cutting & shaping operation from one of the machines in the cutting &shaping; Area and then is sent to the Assembly Area as well. The workers in the Assembly Area put together the product by assembling one component A with one component B to form the final product. There are 3 machines and 3 workers in the Press Area, 2 machines and 2 workers in the cutting &shaping; Area, and 4 assembly workers in the Assembly Area. There are also 3 workers solely responsible from setting up the machines. The machines are 100% reliable. Batch sizes, cycle times and setup times are summarized in the table on the right. In-process inventory of components A and B are allowed to build up before Assembly Area so that assembly workers can operate independently as much as possible. The factory operates 40 hours during a week and 50 weeks per year. Based on this data and information, determine the weekly production capacity of one Press Machine, one Cutting &Shaping; Machine, and one Assembly Worker. Determine the weekly production capacity of the factory. Assume steady state operation, not startup. Is 3 setup workers enough to complete the required setup work? Determine how many Press Machines, Cutting & Shaping Machines, Assembly Workers and Setup Workers are needed to if MKF would like to produce 500 pc/week. Determine the implied utilization rates of each Press Machine. Cutting &Shaping; Machine, Assembly Worker and Setup Worker if MKF would like to produce 300 pc/week Assume that MKF is considering producing a new product, component C requires only a Cutting & Shaping operation that has a cycle time of 3min/pc, a setup time of 60 min, and is produced in batches of 20. If MKF is producing 390pc/wk of the main product determine the maximum weekly production rate of component C of using the remaining capacity?

Explanation / Answer

Given Values:

Press area: Number of Machines = 3 / Number of workers = 3

Cutting & Shaping area: Number of Machines = 2 / Number of workers = 2

Assembly area: Number of workers = 4

workers needed for Setting up of machine = 3

Step I: (Calculation of weekly production capacity)

We know that the cycle time for each shop area & worker is mentioned in the table.

So, 1) Cycle time for press = 3. Therefore hourly production = 60/3 = 20

Weekly production = 20*40 = 800 products/week

2) cycle time for cutting & shaping area = 7 min/pc

Hourly production = 60/7 = 8.57 = 8.00 approx

Weekly production = 40*8 = 320 products/week

3) Cycle time for one assemly worker = 20 min/pc

Hourly production = 60/20 = 3 products/week

Weekly production = 3*40 = 120 products/week

Step II

Consider, there are five working days of the factory and each shift is of 8 hours/day.

Factory capacity per week = (No. of shifts) * (No.of hours a day) * (No. of machines) * (No. of days a week)

   = 1 * 8 * 5 * 5 = 200 standard hours a week

Step III:

Machine capacity is 200 standard hours per week with using 3 press machines & 2 cutting/shaping machines.

When the company increases the production capacity to 600 pc/week

then the required number of machines are given as: press shop = 6 & number of cutting & shaping machines = 6. The workers required in the assembly area = 12.

Workers required for the setting up of machines = 9 number.

Step III:

Utilisation rate of press machine:

Ur =(300-200) / (6-3) = 33.33 %

Utilisation rate of cutting & shaping machine:

Ur = (300 - 200) / (3-2) = 100 %

utilisation rate of assembly worker

Ur = (300 - 200) / (6-4) = 50 %

Utilisation rate of worker for setting up of machine

Ur = (300 - 200) / (4 - 3) = 100 %

Step IV:

The company is producing C component. After production of 390 pc/week with the use of above readings, the maximum weekly production rate of component C is

Pr = 3 * 4 * 5 * 8 * 1 = 480 pc/week.

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