Operation Management

A heat-treatment operation takes 6 hours to process a batch of parts with a standard deviation of 3 hours. The maximum that the oven can hold is 125 parts. Currently there is demand for 160 parts per day (16-hour day). These arrive to the heat-treatment operation one at a time according to a Poisson stream (i.e., with Ca = 1).
a) What is the maximum capacity (parts per day) of the heat-treatment operation?
b) If we were to use the maximum batch size, what would be the average cycle time through the operation?
c) What is minimum batch size that will meet demand?
d) If we were to use the minimum feasible batch size, what would be the average cycle time through the operation?
e) Find the batch size that minimize cycle time. What is the resulting average cycle time?

Consider a workstation with 11 machines (in parallel), each requiring one hour process time per job with Ce2 = 5. Each machine costs $10,000. Orders for job arrive at a rate of 10 per hour with Ca2 =1 and must be filled. Management has specified a maximum allowable average response time (i.e., time a job spends at the station) of 2 hours. Currently it is just over 3 hours. Analyze the following options for reducing average response time.
a) Perform more preventive maintenance so that mr and mf are reduced, but mr/mf remains the same. This costs $8,000 and does not improve the average process time but does reduce Ce2 to one.
b) Add another machine to the workstation at a cost of $10,000. The new machine is identical to existing machines, so te = 1 and Ce2 = 5.
c) Modify the existing machines to make them faster without changing the SCV, at a cost of $8,500. The modified machines would have te = 0.96 and Ce2 = 5. What is the best option?

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Posted on May 23, 2016Author TutorCategories Question, Questions