Question

In: Operations Management

8 hour shift &

8 hour shift

Stage A 20 cars per hour Initial set up time of 20 minute when changing the car model or size

Stage B 20 cars per hour Must be shut down for maintenance and cleaning for 30 minute after every 90 minute of operation

Stage C 18 cars per hour More customization, but no setups

PART A Single car model

Stage A is already set up

How many cars can be produced by the system in an 8-hour shift?

How much idle time is there in this stage during such a shift?

Which stage will you add capacity to? And by how much? Why?

Expert Solution

a. How many cars can be produced by the system in an 8-hour shift?

We need to first find the bottleneck stage. The bottleneck stage is the stage which has the least throughput / output among all stages. In an 8 hour shift, output from each stage will be - Stage A: 20*8=160 cars, Stage B: (8-2.5)*20= 110 (considering shutdown happens 5 times for 30 mins each in 8 hour shift), Stage C: 18*8=144 cars

Hence, the bottleneck stage is Stage B. Now the overall system output will be same as Stage B output i.e. 110 cars per shift

b. How much idle time is there in this stage during such a shift?

Idle time in Stage A equivalent to output units will be 160-110= 50 units per shift or 2.5 hours (calculation: 8 - (110*8/160) =2.5 hours)

Idle time in Stage A equivalent to output units will be 144-110= 34 units per shift or 1.9 hours (calculation: 8 - (110*8/144) =1.9 hours)

c. Which stage will you add capacity to? And by how much? Why?

Capacity should be added to the bottleneck stage i.e. Stage B. Considering that the other two stages can produce 160 (Stage A) and 144 (Stage C), we should look at adding capacity to stage B to at least produce 144 cars per shift to increase the overall output from system to 144 cars per shift.

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keosha answered 1 week ago

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