In: Operations Management
A part is made in batch sizes of 900 units which require 7 operations. Each operation has an average setup time of 83 minutes and 4.5 hrs of nonoperation time. The average operation time is only 2.2 sec/pc.
A) Calculate the Manufacturing Lead Time for this part.
B) Calculate the Work In Progress if the plant runs three 8 hour shifts a day.
A)
Batch size (b) = 900 units
Number of operations (n) = 7
Average setup time (s) = 83 minutes
Nonoperation time (t) = 4.5 hours = 270 min
Average operation time (o) = 2.2 seconds/pc = 0.0367 min
Manufacturing lead time (MLT) = n*(s+ (b*o) + t) = 7*(83 + (900*0.0367) + 270) = 2702 min = 45.03 hours
B)
Work in Progress = Utilization * Production rate * MLT
Production rate = b / (n*(s + (b*o))) = 900 / (7*(83 + (900*0.0367))) = 1.108 pc / min
Work in Progress = 1 * 1.108 * 2702 = 2994.8 units