National Institute of Technology Calicut Department of Mechanical Engineering

Manual Simulation - Worked out Exercise: Batch production

Problem statement

Consider a manufacturing system consists of three parts which are to be processed in

three different machines. Each part has a process route, and this route and process time are
given in Table 1. The parts are arriving to the manufacturing system in batches. For part 1,
the route given in Table 1 is 3(8)-1(10)-2(12) which means that part 1 is processed in
machines 1, 2 and 3 with processing time 8, 10 and 12 minutes respectively and the part visits
machines in the sequence 2-3-1. In the route of part 1, 3(8) represents operation number and
processing time. The data in parentheses is the processing time. Similarly other route data of
the part 1 can be interpreted. The production system has MRP type production control. MRP
output of two periods is available and they are shown in Table 1, as demand. (That is, the
demand column of Table 1 shows the parts arrived to the shop floor during the beginning of
first and second periods.) A period has duration of one hour. All the parts have a lead time of
one period. Dispatch rule is selected in such a way that the part number order will be
followed. Material transfer time is assumed to be zero. This production system has to be
simulated.

The simulation completion time and due time for the batches are to be set. During the
simulation type of event, the event occurrence time and workstation (machine) status are
updated and these details are given in Table 2. Simulation completion time is taken as the
completion time of all the jobs arrived. Due time is set by considering arrival time and
processing time of a batch of parts. The completion time of batches of parts, the due time and
related details are given in Table 3, and cost related data are provided in Table 4.

The objective of the simulation is to find performance measures such as work-in-

progress (WIP) of each part, system WIP, production rate, utilization of each machine,
manufacturing lead time (MLT) of each part type, average number of parts waiting in front of
each machine, material handling cost, production cost considering inventory carrying cost,
and delay cost.

Some more details on the production system and simulation of the problem

An event is identified when a unit of a batch of a part is completed. The different

events in the given problem are arrival of part, operation completion of a part in a
workstation, and departure of a batch of a part from the system after all processes.

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Consider that the production planning environment is like MRP. The batch of parts
required to be processed in a period are available at the beginning of the period. The parts are
sent to next station only after completion of all parts in a batch. That is, production batch size
equals to transfer batch size.

Dispatch rule is based on the part number. That is, in a queue of parts in front of a
machine, if parts 1 and 2 are waiting for processing, part 1 will be processed first and then
part 2.

Material handling cost is calculated based on the center to center distance of facilities
and flow matrix between facilities. The machine layout and the distance between machines
are provided in figure 1 and Table 9 respectively.

Production cost includes raw material cost, carrying cost and value added cost which
is considered after completion of an operation. Cost of the part is calculated after each event.
If a batch of a part is partially processed, the cost of the batch of items is equal to the cost of
the batch at the previous event plus the carrying cost from the previous event to the current
event. These data are used to arrive production cost of a batch of items. Carrying cost is taken
as the 10% of the cost and it is measured per hour basis. Delay cost is taken as Rs.10 per hour
per batch.

Table 1.Operation number, operation time of parts and demand

Simulation
Part Operation number (with processing time in Demand
No. minutes)
M1 M2 M3 Period 1 Period 2
P1 3(8) 1(10) 2(12) 2 1
P2 1(10) 2(8) 3(10) 2 2
P3 2(14) 1(10) 1 2

Table 2. Simulation time, type of events and work station status

Simulation Type of Workstations
time t, (min) events Machine M1 Machine M2 Machine M3
0 A P2-A-P21(10)-Pr P1-A-P11(10)-Pr Idle
P2-A-P22(10)-W P1-A-P12(10)-W
P3-A-P31(10)-W
10 C P2-P21-C-W P1-P11-C-W Idle
P2-P22(10)-Pr P1-P12(10)-Pr
P3-P31(10)-W
20 C P1-2P-C P1-A-P11(12)-Pr
P2-2P-C P2-A-P21(8)-Pr P1-A-P12(12)-W

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Idle P2-A-P22(8)-W
P3-P31(10)-W
28 C P2-P21-C-W P1-P11(4)-Pr
Idle P2-P22(8)-Pr P1-P12(12)-W
P3-P31(10)-W
32 C P2-P21-C-W P1-P11-C-W
Idle P2-P22(4)-Pr P1-P12(12)-Pr
P3-P31(10)-W
36 C P2-2P-C P1-P11-C-W
Idle P3-P31(10)-Pr P1-P12(8)-Pr
P2-A-P21(10)-W
P2-A-P22(10)-W
44 C P1-A-P11(8)-Pr P3-P31(2)-Pr P1-2P-C
P1-A-P12(8)-W P2-A-P21(10)-Pr
P2-A-P22(10)-W
46 C, P1-P11(6)-Pr P3-1P-C P2-P21(8)-Pr
P1-P12(8)-W Idle P2-P22(10)-W
P3-A-P31(14)-W
52 C P1-P11-C-W P2-P21(2)-Pr
P1-P12(8)-Pr Idle P2-P22(10)-W
P3-P31(14)-W
54 C P1-P11-C-W Idle P2-P21-C-W
P1-P12(6)-Pr P2-P22(10)-Pr
P3-P31(14)-W
P1-2P-C-L P1-A-P13(10)-Pr
60 C, L,A P3-P31(14)-W P3-A-P32(10)-W P2-P21-C-W
P2-A-P23(10)-Pr P3-A-P33(10)-W P2-P22(4)-Pr
P2-A-P24(10)-W
64 P3-P31(14)-W P1-P13(6)-Pr P2-2P-C-L
C, L P2-P23(6)-Pr P3-P32(10)-W Idle
P2-P24(10)-W P3-P33(10)-W
70 P3-P31(14)-W P1-1P-C P1-A-P13(12)-Pr
C P2-P23-C-W P3-P32(10)-Pr
P2-P24(10)-Pr P3-P33(10)-W
80 C P2-2P-C P3-P32-C-W P1-P13(2)-Pr
P3-P31(14)-Pr P3-P33(10)-Pr
P2-A-P23(8)-W
P2-A-P24(8)-W
82 C P3-P31(12)-Pr P3-P32-C-W P1-1P-C
P1-A-P13(8)-W P3-P33(8)-Pr Idle
P2-P23(8)-W
P2-P24(8)-W
90 C P3-P31(4)-Pr P3-2P-C
P1-P13(8)-W P2-P23(8)-Pr Idle
P3-A-P32(14)-W P2-P24(8)-W
P3-A-P33(14)-W
94 P3-P31-C-L P2-P23(4)-Pr
P1-P13(8)-Pr P2-P24(8)-W Idle
C, L P3-P32(14)-W

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P3-P33(14)-W
98 P1-P13(4)-Pr P2-P23-C-W
C P3-P32(14)-W P2-P24(8)-Pr Idle
P3-P33(14)-W
102 C,L P1-1P-C-L P2-P23-C-W Idle
P3-P32(14)-Pr P2-P24(4)-Pr
P3-P33(14)-W
106 C P3-P32(10)-Pr P2-2P-C P2-A-P23(10)-Pr
P3-P33(14)-W Idle P2-A-P24(10)-W
116 C P3-P32-C-W Idle P2-P23-C-W
P3-P33(14)-Pr P2-P24(10)-Pr
126 C,L P3-P32-C-W Idle P2-2P-C-L
P3-P33(4)-Pr Idle
130 C, L P3-2P-C-L Idle Idle
Idle
Simulation time = 130 minutes
Type of events:
A - Arrival of parts
C - Completion of a part in any workstation and this part then moves to next operation
workstation if not leaving system. When it is moving to next station, this event is
represented as A in the status state of the workstation. But in the event list this may be
represented as C.
L -Departure of parts after all processes
Abbreviations
A – Arrival of parts, Pr – Processing, W – Waiting, C – Operation completion, L – Leaving a
batch of items after process completion

Note on status of parts in front of a workstation given in the Table 2

Status in front of machine M1 at simulation time 0: A piece of information is (P2-A-P21(10)-
Pr): – (P2-A) means that a batch of part 2, (P2), is arrived, (A). (P21(10)-Pr) - This means that
first item of the batch of part 2 has a process time of 10 minutes, (P21(10)), in machine M1
and it is being processed, (Pr), in the machine.
Another piece of information is (P2-A-P22(10)-W) – (P2-A) means same as the above.
(P22(10)-W) – This means that the second item of the batch of part 2 has a process time of 10
minutes in this machine and it is waiting in the queue of the machine.
Status in front of machine M1 at simulation time 20: (P2-2P-C and idle) – (P2-2P-C) - This
means that a batch of part 2 which contains 2 units completed its processing requirements in
the machine M1.
Another information ‘idle’ means that the machine M1 is idling from this simulation point
onwards.

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Status in front of Machine M1 at simulation time 102: a piece of information is (P1-1P-C-L).

This means that a batch of part 1 which contain one unit is completed its processing
requirement in machine M1 and leaving the system.
Table 3. Due time, Completed time and Delay time
Part type Completed time Due time (min) Delay time Delay cost
(min) (min)
P1-Batch 1 60 60 _ _

P2-Batch 1 64 60 4 0.66

P3-Batch 1 94 60 34 5.66

P1-Batch 2 102 120 0 0

P2-Batch 2 126 120 06 1

P3-Batch 2 130 120 10 1.66

Completed time of various batches of parts is obtained from Table 2. Due time is the time set
on arrival of jobs.
Table 4. Production cost data
Part Addition of value in cost after Raw material
No. completion of work in different stations cost (Rs/unit)
(Rs /unit)
M1 M2 M3
P1 10 15 20 30
P2 14 11 13 40
P3 20 15 50

Calculation of Performance Measures

(a) Manufacturing lead time
Average manufacturing lead time of batches of P1 = Average of completion time of first and
second batch of P1 (There are only two batches of P1 processed during the simulation time)
= [(Completion time of last item in the first batch) +P13]/2
= (60+62)/2 = 61 min
Average manufacturing lead time of batches of P2
= [(Completion time of last item in the first batch) + (Completion time of last item in
the second batch)]/2 = (64+66)/2 = 65
Average manufacturing lead time of batches of P3 = [(P31) + (Completion time of last item in
the second batch)]/2 = (94+70)/2 = 82

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System MLT = (61+65+82)/3 = 69.33 (Average MLT of a batch of a part)

(b) Utilization
Total idle time of machine 1 = 24 min. (Obtained from Table 2)
Machine 1 utilization = (130-24)*100/130 = 81.54%
Total idle time of machine 2 = (60-46) + (130-106) =14+24= 38 min
Machine 2 utilization = (130-38)*100/130 = 70.77%
Total Idle time of machine 3 = (20-0)+(70-64)+(106-82)+(130-126) = 20+6+24+4 = 54 min
Machine 3 utilization = (130-54)*100/130 = 58.46%
(c) Work-in-process (WIP)

Table 5. Parts in the system at various epochs

Simulation time Number of Parts 1 Number of Parts 2 Number of Parts 3
t, (min) in the system in the system in the system
0 2 2 1
10 2 2 1
20 2 2 1
28 2 2 1
32 2 2 1
36 2 2 1
44 2 2 1
46 2 2 1
52 2 2 1
54 2 2 1
60 1 4 3
64 1 2 3
70 1 2 3
80 1 2 3
82 1 2 3
90 1 2 3
94 1 2 2
98 1 2 2
102 _ 2 2
106 _ 2 2
116 _ 2 2
126 _ 2
130 _ _

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Sample calculation for WIP

Information for preparation of above table is obtained from Table 2.
Consider the interval between the simulation time 54 and 70 minutes. WIP of part P2 during
the interval 54 to 70 minutes = (6 × 2 + 4 × 4 + 6 × 2)/16 = 2.5 parts
The reasoning for the above calculation is follows:
There are two units of part 2 in the system from 54 to 60 minutes, 4 units from 60 to 64
minutes and 2 units from 64 to 70 minutes and the time interval considered is 16 minutes.
WIP during the simulation time for various parts
Work in process of part 1 = ((60-0)2+ (102-60)1) / 130 = 162/130 =1.246

Work in process of part 2 = ((60-0)2+ (64-60)4+ (126-64)2) / 130 = 260/130=2.00

Work in process of part 3 = ((60-0)1+ (94-60)3+ (130-94)2) / 130 = 234/130 = 1.80

System WIP = Sum of WIP of individual parts = 1.246 + 2.00 + 1.80 = 5.046 parts

(d) Number of parts in a queue of a machine

Table.6. Number of parts in the queue at various epochs

Simulation No. of Parts in the No. of Parts in the No. of Parts in the
time t, (min) queue of machine 1 queue of machine 2 queue of machine 3
0 1 2 _
10 _ 1 _
20 _ 2 1
28 _ 1 1
32 _ 1 _
36 _ _ 2
44 1 _ 1
46 2 _ 1
52 1 _ 1
54 1 _ _
60 2 2 _
64 2 2 _
70 1 1 _
80 _ 2 _
82 1 2 _
90 3 1 _
94 2 1 _
98 2 _ _
102 1 _ _

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106 1 _ 1
116 _ _ _
126 _ _ _
130 _ _ _

The information for the above table is obtained from Table 2. The average number of parts in
a queue is obtained as a time average of parts in the queue. The calculation is similar to the
WIP calculation.
Average Number of parts in the queue of Machine 1 = (10+2+12+8+20+10+8+12+16

+14) = 112/130 = 0.861

Average Number of parts in the queue of Machine 2 = (20+10+16+ 8+20+10+20+8)/130

= 112/130 = 0.861

Average Number of parts in the queue of Machine 3 = (12+16+10+10) / 130 =48/130= 0.369

(e) Production cost

Table 7. Production cost at different epochs

Simulatio Production cost of Production cost of Production cost of

n time t, Part 1
(min)
0 P11=30
P12=30
10 P11=30+0.5=30.5
P12=30+0.5=30.5
20 P11=30.5+0.5+15=46
P12=30.5+0.5+15=46
28 P11=46+0.61=46.61
P12=46+0.61=46.61
32 P11 =46.61+0.31=46.92
P12 =46.61+0.31=46.92
36 P11 =46.92+0.31=47.23 P21 = 56.43+0.37+11=67.80
P12 =46.92+0.31=47.23
44 P11 =47.23+0.63+20=67.86
P12 =47.23+0.63+20=67.86
46 P11 =67.86+0.22=68.08
P12=67.86+0.22=68.08
Part 2 Part 3
P21=40 P31=50
P22=40
P21 =40+0.66=40.66 P31=50+0.83=50.83
P22 =40+0.66=40.66
P21 =40.66+0.67+14=55.33 P31=50.83+0.84=51.67
P22 =40.66+0.67+14=55.33
P21 =55.33+0.73=56.06 P31 =51.67+0.68=52.35
P22 =55.33+0.73=56.06
P21 = 56.06+0.37=56.43 P31 =52.35+0.34=52.69
P22 = 56.06+0.37=56.43
P31 =52.69+0.35=53.04
P22= 56.43+0.37+11=67.80
P21 = 67.8+0.9=68.7 P31 =53.04+0.7=53.74
P22 = 67.8+0.9=68.7
P21 = 68.7+0.22=68.92 P31
P22 = 68.7+0.22=68.92 =53.74+0.18+15=68.92

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52 P11 =68.08+0.68=68.76 P21 = 68.92+0.68=69.60 P31 =68.92+0.68=69.6

P12 =68.08+0.68=68.76 P22= 68.92+0.68=69.60
54 P11 =68.76+0.22=68.98 P21= 69.60+0.23=69.83 P31 =69.6+0.23=69.83
P12 =68.76+0.22=68.98 P22= 69.60+0.23=69.83
60 P11 =68.98+0.69+10=79.67 P21= 69.83+0.69=70.52 P31 =69.83+0.69=70.52
P12 =68.98+0.69+10=79.67 P22= 69.83+0.69=70.52 P32 =50
P13 =30 P23 =40 P33 =50
P24 =40
64 P21= 70.52+0.47+13=83.99 P31 =70.52+0.47=70.99
P13 =30+0.2=30.2 P22= 70.52+0.47+13=83.99 P32 =50+0.33=50.33
P23 =40+0.26=40.26 P33 =50+0.33=50.33
P24 =40+0.26=40.26
P13 =30.2+0.3+15=45.5 P23 =40.26+0.40=40.66 P31 =70.99+0.7=71.69
P24 =40.26+0.40=40.66 P32 =50.33+0.5=50.83
70
P33 =50.33+0.5=50.83
80 P13 =45.5+0.75=46.25 P23 =40.66+0.67+14=55.33 P32 =50.83+0.84=51.67
P24 =40.66+0.67+14=55.33 P33 =50.83+0.84=51.67
P31 =71.69+1.19=72.88
82 P13 =46.25+0.15+20=66.4 P23 =55.33+0.18=55.51 P32 =51.67+0.17=51.84
P24 =55.33+0.18=55.51 P33 =51.67+0.17=51.84
P31 =72.88+0.24=73.12
90 P13 =66.4+0.88=67.28 P23 =55.51+0.74=56.25 P32
P24=55.51+0.74=56.25 =51.84+0.69+15=67.53
P33=51.84+0.69+15=67.53
P31 =73.12+0.97=74.09
94 P13 =67.28+0.44=67.72 P23 =56.25+0.37=56.62 P32 =67.53+0.45=67.98
P24 =56.25+0.37=56.62 P33 =67.53+0.45=67.98
P31
=74.09+0.49+20=94.58
98 P13 =67.72+0.45=68.17 P23 =56.62+0.38=57 P32 =67.98+0.45=68.43
P24 =56.62+0.38=57 P33 =67.98+0.45=68.43
102 P13 =68.17+0.45+10=78.62 P23 =57+0.38=57.38 P32 =68.43+0.45=68.88
P24 =57+0.38=57.38 P33 =68.43+0.45=68.88
106 _ P23 =57.38+0.38+11=68.76 P32 =68.88+0.45=69.33
P24=57.38+0.38+11=68.76 P33 =68.88+0.45=69.33
116 _ P23 =68.76+1.146=69.9 P32 =69.33+1.15=70.48

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P24=68.76+1.146=69.9 P33 =69.33+1.15=70.48

126 _ P23 =69.9+1.165+13=84.06 P32 =70.48+1.17=71.65
P24=69.9+1.165+13=84.06 P33 =70.48+1.17=71.65
130 _ _ P32
=71.65+0.47+20=92.12
P33
=71.65+0.47+20=92.12

The information for calculating the cost is also obtained from Table 2. Cost of part is
calculated at each epoch. Finally, the cost of a batch of particular part is calculated and it is
given below.
Cost calculation procedure
During the simulation there are two batches of part 1 processed. The first batch contains two
units and second contains one unit. Hence, the average cost of a batch of P1 can be
determined as follows:
Average production cost of a batch of Part 1 = [(P11+P12) +P13]/2

= [159.34+78.62]/2 = Rs.118.98

Similarly, cost of other parts can be calculated.

Average production cost of a batch of Part 2 = [(P21+P22) + (P23+ P24]/2

= [167.98+168.12]/2 = Rs 168.05

Average production cost of a batch of Part 3= [(p31) + (p32+ p33]/2

= [94.58+184.24]/2 = Rs 139.41

The above cost calculation has not taken into account the delay cost and considering this the
average cost has to be revised, which is given below.
Production cost by considering delay cost:
Average production cost of a batch of Part 1 = [(P11+P12) + delay cost +(P13 + delay cost) ] /2

= [(159.34+0)+(78.62+0)]/2 = Rs. 118.98

Similarly, cost of other parts can be calculated.

Average production cost of a batch of Part 2 =

= [((P21+P22) + delay cost) + ((P23+ P24) +delay cost)]/2

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= [(167.98+0.66)+(168.12+1)]/2 = Rs 168.88

Average production cost of a batch of Part 3= [(P31+ delay cost) +( (P32+ P33) + delay cost)]/2

= [(94.58+5.66) + (184.24+1.66)]/2 = Rs 143.07

(f) Material handling cost

The flow matrix is prepared based on the route sheet given in Table 1 and parts scheduled
during the simulation time. For each period, a flow matrix can be prepared. Final flow
matrix of the production system is the sum of flow matrix of various periods. Material
handling cost is the product of flow and distance between machines.
Table.8. Flow matrix
m/c 1 2 3
1 _ 4 0
2 3 _ 7
3 3 0 _

1 2 3 20
40

20 100 10

Figure 1.Layout of machines

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Table.9. Distance matrix shows the distance between workstations

m/c 1 2 3
1 _ 30 60
2 30 _ 30
3 60 30 _

Cost matrix:
Cost matrix = Flow matrix × Distance matrix

Table.10. Cost matrix

1 2 3
1 _ 120 0
2 90 _ 210
3 180 0 _

Material handling cost = 120+90+210+180 = Rs 600

g). Production rate:

Part type 1 production rate = 3 parts in 130 minutes.
= 3 /130 units/min = 0.0231 units / min = 1.38 units / hour.
Similarly, Part type 2 production rate = 4 parts in 130 minutes = 1.846 units / hour
Part type 3 production rate = 3 parts in 130 minutes = 1.38 units / hour.

Acknowledgement:
The help provided by Mr. Talari Chinna Pamulety, P080011ME, Ph.D. Scholar and
Mr. Jerin Joseph, M070338, M.Tech Student, in preparing this simulation exercise is
thankfully acknowledged. Mr. Jerin Joseph developed the simulation table and calculation for
estimation of performance measures and Mr. Talari Chinna Pamulety has done the
verification of calculations.

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