Example 1: Assume that part X routing is Machine A, then B, then C; 50,000 parts

Question

Example 1: Assume that part X routing is Machine A, then B, then C; 50,000 parts are to be produced per year. In addition, part Y routing is Machine B, then C, then A; 100,000 parts are to be produced per year. Given the following information, how many machines A, B and C is needed to produce parts X and Y? Part X standard time Part Y standard time Part X scrap estimate Part Y scrap estimate Historical efficiency Equipment availability Machine A 0.20 hr 0.05 hr 5% 4% 95% 2000 hrs/yr Machine B 0.05 hr 0.10 hr 2% 3% 90% 2000 hrs/yr Machine C 0.10 hr 0.08 hr 0% 0% 100% 1800hrs/yr

Explanation / Answer

Steps followed are as follows:

Determine number of input units required at the machines considering scrap percentage.

Input units required = (1 + scrap rate) x output required.

Calculate total hour required to produce above units by multiplying units required to process with standard time

Product

Machine sequence

X

A

B

C

Output

Scrap rate

5%

2%

0%

Quantities

(1+0.05)*51000

= 53550

(1+00.2)*50000

= 51000

(1+0)*50000

= 50000

50,000

Standard time

0.2

0.05

0.1

Total Hours required

0.2*53550

= 10710

2550

5000

Product

Machine sequence

Y

B

C

A

Output

Scrap rate

3%

0%

4%

Quantities

107120

104000

104000

100,000

Standard time

0.1

0.08

0.05

Total Hours required

10712

8320

5200

Determine total load in hours required at each machine to produce X and Y.

Determine actual hours available per year by multiplying efficiency and design available time/hr.

Determine number of machines required by dividing total load by actual hours available.

Machine

A

B

C

Load (hrs) from X

10710

2550

5000

Load (hrs) from Y

5200

10712

8320

Total Load (hrs.)

15910

13262

13320

Available time/year

2000

2000

1800

Efficiency

95%

90%

100%

Actual hours Available

1900

1800

1800

Number of Machines required

8.4

7.4

7.4

Actual No. of Machines required

9

8

8

Requirements are as follows:

M/c A = 9, M/c B = 8, and M/c = 8

Product

Machine sequence

X

A

B

C

Output

Scrap rate

5%

2%

0%

Quantities

(1+0.05)*51000

= 53550

(1+00.2)*50000

= 51000

(1+0)*50000

= 50000

50,000

Standard time

0.2

0.05

0.1

Total Hours required

0.2*53550

= 10710

2550

5000

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