OPERATIONS AND SUPPLY CHAIN MANAGEMENT

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KNM Electric – Case Let

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 KNM Electric – Case Let
• KNM switches are market leaders in Domestic switches and sockets.

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 KNM Electric – Case Let
• KNM switches are market leaders in Domestic switches and sockets.

• They hold a market share of 35%..

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 KNM Electric – Case Let
• KNM switches are market leaders in Domestic switches and sockets.

• They hold a market share of 35%.

• Their products are known to have the best product life and performance among all the competitors.

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 KNM Electric – Case Let
• KNM switches are market leaders in Domestic switches and sockets.

• They hold a market share of 35%.

• Their products are known to have the best product life and performance among all the competitors.

• In the year 2014, two of their competitors (combined market share of 10%) decided to shut down their operations for
domestic switches and sockets.

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 KNM Electric – Case Let
• KNM switches are market leaders in Domestic switches and sockets.

• They hold a market share of 35%.

• Their products are known to have the best product life and performance among all the competitors.

• In the year 2014, two of their competitors (combined market share of 10%) decided to shut down their operations for
domestic switches and sockets.

• KNM’s management in anticipation of a demand spurt want to increase their production.

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 KNM Electric – Case Let
• Management is of the opinion of expanding their plant capacity, but it would entail huge costs.

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 KNM Electric – Case Let
• Management is of the opinion of expanding their plant capacity, but it would entail huge costs.

• Management is also looking at acquiring few smaller firms in a push to capture the total market.

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 KNM Electric – Case Let
• Management is of the opinion of expanding their plant capacity, but it would entail huge costs.

• Management is also looking at acquiring few smaller firms in a push to capture the total market.

• Avinash, production engineer by education, had noticed an inefficiency in production planning during his short stay at
KNM Electric.

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 KNM Electric – Case Let
• Management is of the opinion of expanding their plant capacity, but it would entail huge costs.

• Management is also looking at acquiring few smaller firms in a push to capture the total market.

• Avinash, production engineer by education, had noticed an inefficiency in production planning during his short stay at
KNM Electric.

• He saw this as an opportunity to put forth his findings, because he was sure it would help increase the production.

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 KNM Electric – Case Let
• KNM produces seven types of Switches – Switch 1, Switch 2, Switch 3,…. and Switch 7..

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 KNM Electric – Case Let
• KNM produces seven types of Switches – Switch 1, Switch 2, Switch 3,…. and Switch 7.

• Manufacturing the switches encompasses a series of processing operations.

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 KNM Electric – Case Let
• KNM produces seven types of Switches – Switch 1, Switch 2, Switch 3,…. and Switch 7.

• Manufacturing the switches encompasses a series of processing operations.

• Time taken by each job on each of these processing units (Machine) are tabulated below:

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 KNM Electric – Case Let
• KNM produces seven types of Switches – Switch 1, Switch 2, Switch 3,…. and Switch 7.

• Manufacturing the switches encompasses a series of processing operations.

• Time taken by each job on each of these processing units (Machine) are tabulated below:

Machine A Machine B
Switch 1 10 15
Switch 2 9 5
Switch 3 3 1
Switch 4 2 2
Switch 5 3 3
Switch 6 8 6
Switch 7 6 9

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 KNM Electric – Case Let
• KNM produces seven types of Switches – Switch 1, Switch 2, Switch 3,…. and Switch 7.

• Manufacturing the switches encompasses a series of processing operations.

• Time taken by each job on each of these processing units (Machine) are tabulated below:

Machine A Machine B
Switch 1 10 15
Switch 2 9 5
Switch 3 3 1
Switch 4 2 2
Switch 5 3 3
Switch 6 8 6
Switch 7 6 9

• So far they were manufacturing units in the following order:

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 Johnson’s Rule (for n jobs in 2 machines)
•List the operation time for each job.
•Select the shortest operation time.
•If the shortest time is on the first machine, do first.
•If the shortest time is on the second machine, do the job last.
•Repeat steps 2-3 for each remaining job.
•Note:
•These jobs must go to machine 1 first and 2 second.
•Let Pij = Processing time for job i on machine j
•The Algorithm is:
•1. Find the job with minimum Pij
•2. If j = 1 (machine 1) this job becomes the first job
•3. If j = 2 (machine 2) this job becomes the last job
•4. Remove assigned job from the list and repeat (break ties at random)
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 Layout Decisions
• Facility layout: the process of determining placement of
departments, workgroups within departments, workstations,
machines, and stock-holding points within a facility
• This process requires the following inputs:
1. Specification of the objectives used to evaluate the design
2. Estimates of product or service demand
3. Processing requirements
4. Space requirements for the elements
5. Space availability within the facility

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Basic Production Layout Formats

Workcenter

• Also called a job-shop or functional layout

• Similar equipment are grouped together

Assembly line

• Also called a flow-shop layout

• Work processes are arranged according to the steps by which the product is made

Manufacturing cell

• Dissimilar machines are grouped to work on similar products

Project layout

• Product remains at one location

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Assembly Steps and Times

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Example: Precedence Graph
Example: C and Nt

Production time per day 60 sec. x 420 min

C 
Output per day 500 wagons
25,200
  50.4
500
T 195 seconds
Nt    3.87  4
C 50.2 seconds
Assembly-Line Balancing Formula

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 Assembly-Line Design
• Cycle time: a uniform time interval in which a moving conveyor
passes a series of workstations
• Also the time between successive units coming off the line
• Assembly-line balancing: assigning all tasks to a series of
workstations so that each workstation has no more than can be
done in the cycle time
• Precedence relationship: the order in which tasks must be
performed in the assembly process

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 Assembly-Line Balancing
1. Specify the sequential relationships among tasks
2. Determine the required cycle time
3. Determine the theoretical minimum number of workstations
4. Select a primary and secondary assignment rule
5. Assign tasks
6. Evaluate the efficiency of the balance
7. Rebalance if needed

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Example: Assignment
Example: Efficiency

T 195
Efficiency    0.77  77%
N a C 550.4