Assignment 2:

REVIEW QUESTIONS (answer 5 Questions)

3.1 What is the cycle time in a manufacturing operation?

Answer - The cycle time Tc is the time when a work unit being processed. It’s the time between a work unit
starts processing and when the next unit begins.

3.2 What is the difference between sequential batch production and simultaneous batch production?

Answer - Sequential batch - when they are executed by the same resource for distinct cases
immediately or almost immediately after each other.
Simultaneous batch - when they are executed by the same resource for distinct cases at the
exact same time.
3.3 What is a bottleneck station in a production line?

Answer - Is the slowest production line of a workstation. It limits the pace/production for the whole
assembly line.

3.4 What is availability and how is it defined?

Answer - Availability - is reliability metric that indicates proportions of time that each piece of
equipment is currently up and working correctly.
Availability Defined - A = (MTBF - MTTR)/MTBF
- where A = availability
- where MTBF = mean time between failures
- where MTTR = mean time to repair
3.5 What is workload?

Answer - The total amount of time required to complete a given amount of work.

3.6 What is production capacity?

Answer - Is the maximum rate of production facility output operating conditions.

3.7 How can plant capacity be increased or decreased in the short term?

Answer - The three ways that plant capacity can be increased/decreased in a short term are:
1. Increase of decrease number workers w
2. Increase or decrease shifts per week
3. Increase or decrease hours per shift (e.g., overtime)

3.8 How can plant capacity be increased or decreased in the intermediate or long term?

Answer - The two ways that a plant capacity can be increased or decreased in a intermediate/long term
are: 1. Increase number of machines n
2. Increase production rate Rp by methods improvements and/or processing technology

3.9 What is meant by the term part mix?

Answer - Refers to the relative proportions of part or product styles.

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 3.10 What is utilization in a manufacturing plant? Provide a definition.

Answer - Is the amount of output of a production facility relative to its capacity. As an equation,
U = WL/PC.
- where U = utilization
- where WL = workload
- where PC = is the production capacity during the same period

3.11 What is manufacturing lead time?

Answer - Manufacturing lead time is the total time required to process a given part or product through the
plant, including any time for delays, material handling, queues before machines, etc.

3.12 What is work-in-process?

Answer - Work-in-process (WIP) is the quantity of parts/products currently located in the factory that are
either being processed or are between processing operations. As an equation, WIP = R*p(MLT).
- WIP = work-in-process
- R*p = hourly plant production rate, pc/hr.
- MLT = manufacturing lead time, hr.

3.13 How are fixed costs distinguished from variable costs in manufacturing?

Answer - Fixed Costs - remain constant for any output level

Variable Costs - very in proportion of production output level
As an equation, TC = FC + VC(Q)
- where TC = total costs
- where FC = Fixed Costs
- where VC = variable costs
- where Q = output level

3.14 Name five typical factory overhead expenses?

Answer - 1. Plant supervision

2. Factory Depreciation
3. Line foremen
4. Equipment depreciation
5. Maintenance

3.15 Name five typical corporate overhead expenses?

Answer - 1. Corporate
2. Executives
3. Engineering
4. Cost of office space
5. Finance department

3.16 Why should factory overhead expenses be separated from corporate overhead expenses?

Answer - Factory overhead expenses are the costs that are involved in running the everyday
operations of the company which is usually takes up majority of the company expenses.
Whereas Corporate overhead expenses refers to indirect costs associated with running a
business. It takes all the costs that are not directly factored into producing a product or
service.

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 PROBLEMS (answer 5 problems, one from each section)

Cycle Time and Production Rate

3.1 A batch of parts is produced on a semi-automated production machine in a sequential batch production operation.
Batch quantity is 300 units. Setup takes 55 min. A worker loads and unloads the machine each cycle, which takes
0.75 min. Machine processing time is 3.46 min/cycle, and tool handling time is negligible. One part is produced each
cycle. Determine
(a) average cycle time, (b) time to complete the batch, and (c) average production rate.

Answer - (a) Average Cycle Time

TC = To + Th
= .075min + 3.46min/cycle
= 4.21 average cycle time
(b) Time to Complete the Batch
Tb = Tsu + QTc
= (55min x 1hr/60mins) + (300units x 3.46min/cycle x 1hr/60mins) + (300units x .44mins x
1hr/60mins)
= .916 + 17.3 + 2.2
= 20.416 = 20.4 batch per hr.
(c) Average Production Rate
Tp = 1/Tb/Q
= 1/20.4/300
= .0490196078/300
= 14.705 = 14.71 average production rate per hr.

Workload and Production Capacity

3.10 One/half million parts of a certain type are to be manufactured annually on dedicated production machines that
run 16 hours per day, five days per week, 50 weeks per year. (a) The cycle time to produce one part is 1.8 min. If
availability and utilization are each 100%, and setup time is neglected, how many of the machines will be required to
satisfy demand? (b) Solve part (a) except that availability = 95%.

Answer - (a) WL = 500000 x 1.8 x (1hr/60mins)

= 500000 x .0300000001
= 15000.00005 = 15000 hrs./yr.

Hours available per machine = 16 x 5 x 50 = 4000 hrs./yr. per machine

Number per machine = 15000.00005/4000 = 3.75 = 3 machines

(b) At A = 95%, n = 15000.00005hr/4000hr per machine (0.95)

= 15000.00005hr/3800
= 3.947 = 4 machines.

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 Bottleneck Model

3.16 A job shop operates 40 hours per week and produces four part styles using four station types, some of which
have multiple servers. Part-mix ratios, batch quantities, part routings, machines, servers, setup times and cycle times
are given in the table below for the four part styles produced in the shop. Operation sequence for each part style is in
the order of station number. Part styles are identified by letter and stations are identified by number. Determine
(a) which station is the bottleneck, (b) total weekly output of all five parts, (c) weekly outputs for each of the part
styles, (d) utilization of each server at each station, and (e) average utilization of the machine shop.

Answer -

(a) which station is the bottleneck.

WL1 = (.24 x 15 x .55) + (.18 x 20 x .40) + (.31 x 10 x .38) + (.27 x 12 x .42)

= 1.98 + 1.44 + 1.178 + 1.3608
= 5.9588 hrs

WL2 = (.24 x 15 x .62) + (.18 x 20 x .75) + (.31 x 10 x .52) + (.27 x 12 x .38)

= 2.232 + 2.7 + 1.612 + 1.2312
= 7.7752 hrs

WL3 = (.24 x 15 x .38) + (.18 x 20 x .28) + (.31 x 10 x .45) + (.27 x 12 x .24)

= 1.368 + 1.008 + 1.395 + .7776
= 4.5486 hrs

Bottleneck station is Station 2

(b) total weekly output of all five parts

A in all three stations = .55 + .62 + .38 = 1.55hrs

B in all three stations = .40 + .75 + .28 = 1.43hrs
C in all three stations = .38 + .52 + .45 = 1.35hrs
D in all three stations = .42 + .38 + .24 = 1.04hrs

Job Hours Given: 80 hrs/week

= (1.55 x .24 x 15) + (1.43 x .18 x 20) + (1.35 x .31 x 10) + (1.04 x .27 x 12)
= 5.58 + 5.148 + 4.185 + 3.3696
= 18.2826 hrs

80hrs/18.2826hrs = 4.375
Part A = 4.375 x 0.24 x 15 = 15.75
Part B = 4.375 x 0.18 x 20 = 15.75
Part C = 4.375 x 0.31 x 10 = 13.5625
Part C = 4.375 x 0.27 x 12 = 14.175

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 (c) weekly outputs for each of the part styles

Part A = 15
Part B = 15
Part C = 13
Part D = 14

(d) utilization of each server at each station

Total # of Servers = 3 + 4 +2 = 9

Total # of parts in each station outputs/Total # of Servers

= 15 + 15 + 13 + 14/9
=57/9
=6.33 times

(e) average utilization of the machine shop

Average Ū = 80hrs/7days (days in a week)

= 11.43hrs/day

Manufacturing Lead Time and Work-In-Process

3.18 A batch of parts is routed through six machines in a batch production plant. Batch size is
100. At each machine, the parts are processed sequentially. Setup times and cycle times are given in the table below.
Average nonoperation time per machine is 12 hours. Determine (a) manufacturing lead time and (b) hourly
production rate for operation 3.

Machine 1 2 3 4 5 6
Setup time (hours) 4.5 2.0 5.0 3.0 2.5 4.0
Cycle time (min) 5.0 3.5 6.2 1.9 4.1 2.5

Answer -
Average Tsu = Setup Time = (4.5 + 2.0 + 5.0 + 3.0 + 2.5 + 4.0)/6 = 21/6 = 3.5hrs
Average Tc = Cycle Time = (5.0 + 3.5 + 6.2 + 1.9 + 4.1 + 2.5)/6 = 23.2/6 = 3.8mins

a) MLT = 6(3.5 + 100(3.8/60) + 12) = 6(21.8) = 131hrs

b) Rp for operation 3: Tp = [5.0 + 100(6.2/60)]/100 = 15.3/100 = 0.153 hr/pc

Rp = 1/Tp
= 1/0.153
= 6.53 pc/hr

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 Manufacturing Costs

3.27 Costs have been compiled for a certain manufacturing company for the most recent year. The summary is
shown in the table below. The company operates two different manufacturing plants, plus a corporate headquarters.
Determine (a) the factory overhead rate for each plant, and (b) the corporate overhead rate. The firm will use these
rates in the following year.

Expense category Plant 1 Plant 2 Corporate Headquarters

Direct labor $1,000,000 $1,750,000
Materials $3,500,000 $4,000,000
Factory expense $1,300,000 $2,300,000
Corporate expense $5,000,000

Answer -

(a) the factory overhead rate for each plant

Plant 1

FOHR1=1300000/1000000 = 1.3 = 130%

Plant 2

FOHR2 =2300000/1750000 = 1.31 = 131%

(b) the corporate overhead rate

COHR=5000000/1000000 + 1750000 = 1.81 = 181%

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