Case Study on How many cars a production sector will produce in a given shift time (8-hours) directly depends upon the time spent on each stage or process in the production

How many cars a production sector will produce in a given shift time (8-hours) directly depends upon the time spent on each stage or process in the production. For instance, how much time was required at the first stage and how much time the second stage took in the completion. Moreover, it also depends upon the selection of the processing system. For instance, process batch takes less time in completion as compared to transfer batch. In case a production sector set-up different stages for the production of cars with the following specifications then the total of 214 cars will be produced in an 8-hour shift. 

Stage: A

Around 20-cars per hour are expected to have changed in the model during 20min.

Stage: B

Around 20 cars maintenance and cleaning require time 30min after each 90-min operation.

Stage: C

18 per hour of customization without set-up.

Then total cars went through these stages will be as following:

The values of 8 hours are adjusted with the time-break of 30 minutes after each 90 minute operations at production sector.

Question: 2

The second question from the case study is about the total available idle time during the stages of selected shift time. Considering the shared information, the total idle time during this shift is 30 minute which will be taken after every 90 minutes. During this idle time, the company will not run its production machines for the assembling and manufacturing of car parts.

Question: 3

Capacity building can be beneficial for the production sector and a specific stage of this production system. In accordance with the case study, stage A need to require capacity increasing as the second stage does not need an increase in capacity. We will add capacity of 50 more cars in the stage A. However, in customization stage, we also need to add capacity for better performance and alignment with the production capacity of other stages in the production sector. Focusing on stage A we can say that capacity would cost:

In this car production system, set-up times are unproductive therefore we will reduce these set-up times in stage A to increase system capacity in the production sector.

Question: 4

Would we need to reduce the setup time? Regarding this question, the following considerations are presented.

For instance, if we reduce the time for 10 min then we will have to pay $10,000 more in the cost of production. While $20,000 cost allocation is required for the downtime of 15 min from 30. The reduction is favourable for the set-up stage as it only cost $10,000 but might be resulted in the increase of production at stage A (which was already less than stage B). Although, in case of reduction option 2 we will have 50% reduction at cost of $20,000 which does not seem a suitable option in respect to the shared case scenario.

Question: 5

As stated above 50% reduction will be made in stage A with $10,000 cost. The time reduction will bring changes in the overall outcomes and capacity of this production system. See the following table representing the system impact of time reduction on the overall production of stage A.

Before reduction stage A was capable to produce 20 cars per hour. Thus, by reducing 50% (20 min to 10 min) in stage A production system now almost double cars can be produced. Therefore, 20 cars are jumped to 40 cars per hour of production. As a result, the total system capacity for the 8-hours shift is also inclined to 214 from 107 cars. 

Question: 6

The two given options are adding buffers and reducing setup time.  Based on the analysis, the most favourable and better option is reducing set-up time. Adding buffer for 50 more cars will cost around $250,000. While selecting the 50% time reduction option for stage A will cost around $10,000 only. Thus, reducing time at a specific stage of the production process is more cost effective as compared to the options one of adding buffers for capacity building. Thus, conclusively the time reduction option is a better option for the company.

Question: 7

In case, we combine both available options for the given case study them, the total cost of operations will increase for the production sector. However, at the same time, increased capacity and production output will reduce cost per unit. Adding buffers and reducing set-ups will cost as:

While the expected increase in the system cost is $260,000 for the addition of both options, However, the total number of increase in the cars per shift of 8-hour represent the system capacity for the production sector. Considering this, the total increase in capacity of the production system would be around 157 cars. The following calculations are used to calculate the total increase in system capacity.

Question: 8

In case, we consider all available (3 options) for the same production system them overall capacity and cost of production will again get changed. In such a situation, three options will generate the following cost:

Thus, the calculated cost for the implementation of all three available options in the production system is limited to $280, 000. While the best option from all three available options is a reduction in the set-up time at stage A.

Part B

Question: 9

A 6 day per week operations with 8-hour shift would be as:

The above-presented table is based on the implementation of the time reduction system at the set-up stage of the production system. However, if we consider a simple production system without buffering and reduction options then total production in 6 days would be limited to 642 cars per weeks.

Question: 10

The batch sequence for the three models during the week will be processed as:

Question: 11

In case, we had another model "w" then the whole process could get an effect. At the same production set-up, we cannot build so many car models because each time when we start production of a new car model we need to make changes in the model sizes and other specifications which require more than 20 minutes each time.

Question: 12

In order to incorporate with this additional model, we need to develop capacity in the production system of each stage including production stage, assembling stage, and customization stage. Furthermore, more buffers and reduction plans would be required to control the cost of operations while boosting its efficiency and capacity of production.