ASSIGNMENT 2

Operations Management

Submitted to

Prof. Amol
Dhaigude

Submitted by

FAS 47-A1

 Chitra L- 20M112
 Sneha Bhujbal- 20M147
 Kislaya Srivastava- 20M123
 Ritesh Naik- 20M134
 Paarth Raaj Gupta- 20M130
 Chandrakant Vadluru- 20M110
Q1. How well is Bayonne utilizing its Current Capacity?
Ans:
Standa Standa
rd Numb Sheets/ Orde rd
  Times1   er Pcs rs Hours      
Capacit
Tot Tot y
Schedul Sche Total al al Utilizati
  Setup Run Mach. ed d. Setup Run Hrs on
Machine Per
or Work Hou mac
Centre           Hours rs h.  
Composit
ion
(plates)2 40 2 1 1,438 310 207 48 255 73%
Jagenburg
sheeter 0.00 31,85,0
(sheets) 20 33 1 32 310 103 175 279 80%
Heidelber
g press 0.00 31,62,7
(sheets) 50 83 2 37 310 258 438 348 100%
Bobst
die-cut 0.00 31,08,9
(sheets)3 30 75 2 71 310 155 389 272 78%
Int.
Royal/Qu
een F&G 0.00 62,09,3
(pieces)4 180 23 3 29 77 231 238 156 45%
Int.
Staude
F&G 0.01 22,42,0
(pieces) 40 5 4 39 233 155 561 179 52%
Int. 3A
window/
patch 0.01 7,82,27
(pieces)5 100 1 2 4 88 147 143 145 42%
Finishing 6,87,60 1,14
(pieces)6 30 0.1 N/A 1 28 14 6 N/A  
The current capacity utilization is low. Heidelberg press has the lowest capacity and it is the
bottleneck process.

Q2. What size of orders would you route to the Royal/Queen work center, and what to the
Staude work center?
Ans:
To calculate the breakeven point for both the machines, we need to equate the total time
required by both the machines.
The total time required is= 180 Royal/queen setup + 0.0023X
The total time required is = 40 Staude setup + 0.015X
180 Royal/queen setup + 0.0023X = 40 Staude setup + 0.015X
By equating both the equations the value of X turns out to be 11024.
Therefore, any order greater than 11024 should be processed by Royal/Queen setup.

Q3. Recommendations to Dave.

Ans:
1. Based on our calculations we came to know the breakeven point for an order, whether
to process under Royal/Queen setup or Staude setup. If the order is more than 11024
pieces than we should go for Royal/Queen setup otherwise Staude setup. By
following such strategy, the issue of Fold&Glue Department will be resolved.
2. Printing dept is the one which has the lowest capacity and is the bottleneck. In order
to solve the problem, we recommend increasing the printing department’s capacity by
buying more printers.
3. We recommend prioritizing orders and weigh the consequences of rush orders for the
remaining orders, therewith optimizing the number of rush orders.
4. Increase/improve maintenance on machines in order to increase quality.