Group X2

Bayonne Packaging Inc

1.What is Bayonne's industry, type of operation, and therefore its key strategic objectives?
What are its main problems?
Answer 1
Bayonne packaging, Inc., was a speciality packaging paper converter that produced
customised, complex design packaging that was used by industry customer for promotional
materials software, luxury beverages and gift food and candy. Beautiful product, great
designs, classy printing, and link of innovative and difficult package design and the ability to
fold and glue the complex blanks.
Type of operations – Job Shop
Bayonne’s salesforces work closely with customers to develop artwork and package design,
culminating in a proof for customer approval. The operation starts with cutting the paper
from the roll stock, printed the artwork, Die-cut the printed sheets into blanks and folded
and glued the blank into the final product. The finishing department then done some
finishing work, packed and shipped to the customer.
Key strategic objectives -
1. Cost - Keeping operation and production cost down by utilising maximum capacity.
2. Quality - Ensuring good quality of order delivery by minimising or eliminating the order
rejection rate
3. Delivery - Delivering order on time by proper scheduling and order prioritisation.
4. Variability - minimising the order and process variability.
Main problems -

 Quality issue due to fold and glue with either missing include lines or excess glue.
1.5% of the customer rejection rate and Due to scrap and customer rejects are very
high, the cost of production is high, and company incurred a loss of 7.2% of revenue.
 On time delivery : in October,2011 there were late more than 20% of the time.
 Computerised scheduling system was not being followed. A process that is running
at full capacity and there is no buffer to cope with variability in Customer order
 No maintenance schedule being done. One or two extra days at eight works enter
due to gagging of order
 There was no method followed in determining the priority of orders
 2. How well is Bayonne utilizing its current capacity? What hard data might you
use to substantiate your assessment?

Answer 2
Total Hrs
per No. of Combined Theoretical Run Capacity
Machine Machine(x) Machine(y) Running(x*y) Time(z) Utilization
Composition 255 1 255 347 73%
Jagenburg Sheeter 279 1 279 347 80%
Heidelberg Press 348 2 696 694 100%
Bobst Die-Cut 272 2 544 694 78%
Royal/Queen F&G 156 3 468 1041 45%
Staude F&G 179 4 716 1388 52%
3A window 145 2 290 694 42%
Total 1634 2 3248 5205 62%

 Bayonne Packaging is utilizing 62.40% of its total capacity.

 The hard data used to substantiate the capacity utilization per work center is number
machines, total hours per machine and theoretical running times.
 Heildeberg press is the bottleneck with capacity utilization of 100.29% as it produces
the output too quickly for the succeeding production processes to handle and thus
causes a congestion in the production system.

3. What is the capacity in pieces per day for the Die-cut work center, if it were running orders
of 60,000 pieces in the following three cases:
a. None of the orders can be ganged.
b. Three orders can be ganged.
c. All the orders can be ganged
Answer 3
Case 1 : None of the orders can be
ganged    
Total pieces per order 60000pieces
Time per sheet 0.0075min
Time per piece(3 pieces per sheet) 0.0025min
Total Time to process orders 150min
Average set up time for machine 150min
Total time per order 300min
No of working hour per day 900min
     
Total capacity of Die-cut center 3 orders
Total capacity of Die-cut in pieces 180000 pieces
     
 Case 2 : Three orders can be ganged    
Total pieces per order 60000 pieces
Time per sheet 0.0075 min
Time per piece (3 pieces per sheet) 0.0025 min
Total pieces in gang of 3 order 180000 pieces
Total Time to process orders 450 min
Average set up time for machine 150 min
Total time per order 600 min
No of working hour per day 900 min
     
Total capacity of Die-cut center 1.5 batches
Total capacity of Die-cut center in orders 4.5 orders
Total capacity of Die-cut in pieces 270000 pieces
     
Case 3 : All orders are ganged    
Total pieces per order 60000 pieces
Time per sheet 0.0075 min
Time per piece(3 pieces per sheet) 0.0025 min
Total time per day 900 min
Time required for one set up 150 min
Remaining time for running orders in a
day 750 min
     
Number of pieces per day 300000 pieces
Number of orders per day 5 orders

4. What should John Milliken recommend to Dave Rand?

Answer 4
Here are some of recommendations John Milliken can suggest to Dave Rand-

 Communication across departments needs be made better. Production issues can

possibly be discussed and tackled as a unit via the regular scheduling of weekly
meetings.
 Given the presence of variability seen through the often-changing demands of the
client, capacity needs to be increased by allowing for overtime.
 Lack of ganging of orders is acting as an obstruction to the Composition, Sheeting,
Printing and Die Cutting Department. Ganging should be facilitated to make the
process faster
 Orders that require quick deliveries and have had their customers expedite their
delivery dates, must be prioritized in the system. A way of balancing the existing
order process must also be ensured.
 The maintenance of machines must be looked after with importance
 Introduce change in the Work Order jacket by making it a Pre-Work Order Jacket that
will allow for departments to foresee the upcoming demand
 Increase the number of breaks given to operators from 1- 30-minute break in an 8-
hour shift to 3–30-minute breaks to increase productivity
 Since Neil Rand is looked up to positively by everyone in the company and knows
the works, he may provide tips of improvement to all departments
 Since the Heidelberg press seems to be adding to the production time, extra shifts
could be added here to widen the bottleneck