1. DISTQIBUTION TRANSFORMER COMPANY LIMIETED (DTCL)
PRODUCTION OPERATION
MANAGEMENT
NewGate India
Hyderabad, Andhra Pradesh- 500038
Website: www.newgate.in
Email: contact@newgate.in
Slideshare URL :
http://www.slideshare.net/newgateindia

2. Introduction
DTCL(Distribution Transformer Company Limited)is a
Company manufacturing Transformers for Power Sectors.
Owing to Financial Crisis,channelised their efforts to tap the
Export Market.
Previously manufactured only Single Phase Transformers but
later expanded to Distribution Transformers.

3. Issues Faced by Engineering
Department
Customer Specifications varying widely owing
to Company going Global.
Longer Lead times to meet new Specifications.
Rejection at the last moment due to Quality
Issues.

4. List of Activities Given
Activity no. Description
1 Processing and circulation of customer order
2 Preparation of customer drawings
3 Customer drawings to marketing
4 Checking and forwarding to customer
5 Getting approval from customer
6 Preparation of manufacturing drawings
7 Issuing manufacturing drawings to planning
8 Issue from planning to other departments
9 Material procurement-prototype
10 Processing tools required for manufacturing
11 Manufacturing- prototype
12 Material processing-final order execution
13 Manufacturing-final order execution
14 Organizing customer inspection through marketing
16 Dispatch

5. Activities Includes
Activity no. Description
1 Processing and circulation of customer order
2 Preparation of customer drawings
3 Customer drawings to marketing
4 Checking and forwarding to customer
5 Getting approval from customer
5’ Customer comments
6 Preparation of manufacturing drawings
7 Issuing manufacturing drawings to planning
8 Issue from planning to other departments
8’ Revision
9 Material procurement-prototype
10 Processing tools required for manufacturing
11 Manufacturing- prototype
12 Material processing-final order execution
13 Manufacturing-final order execution
14 Organizing customer inspection through marketing
16 Dispatch

6. Time of activities
Domestic Export
Activity no. Description Order-1 Order-2 Order-1 Order-2
1 Processing and circulation of customer order 2 2 3 3
2 Preparation of customer drawings 30 18 13 16
3 Customer drawings to marketing 2 3 1 1
4 Checking and forwarding to customer 2 1 3 3
5 Getting approval from customer 447 98 396 93
05’ Customer comments
6 Preparation of manufacturing drawings 400 120 400 23
7 Issuing manufacturing drawings to planning 2 3 17 1
8 Issue from planning to other departments 1 2 2 1
08’ Revision
9 Material procurement-prototype
10 Processing tools required for manufacturing 603 228 486 167
11 Manufacturing- prototype
12 Material processing-final order execution 341 160 36 5
13 Manufacturing-final order execution
Organizing customer inspection through
14
marketing
16 Dispatch 8 130 18 15
Time in days

7. Assumptions
Domestic Export
Activity no. Description Order-1 Order-2 Order-1 Order-2
1 Processing and circulation of customer order 2 2 3 3
2 Preparation of customer drawings 30 18 13 16
3 Customer drawings to marketing 2 3 1 1
4 Checking and forwarding to customer 2 1 3 3
5 Getting approval from customer 447 98 396 93
05’ Customer comments
6 Preparation of manufacturing drawings 400 120 400 23
7 Issuing manufacturing drawings to planning 2 3 17 1
8 Issue from planning to other departments 1 2 2 1
08’ Revision
9 Material procurement-prototype
10 Processing tools required for manufacturing 603 228 486 167
11 Manufacturing- prototype
12 Material processing-final order execution 341 160 36 5
13 Manufacturing-final order execution
Organizing customer inspection through
14
marketing
16 Dispatch 8 130 18 15
Time in days

8. Assumptions
Domestic Export
Activity no. Description Order-1 Order-2 Order-1 Order-2
1 Processing and circulation of customer order 2 2 3 3
2 Preparation of customer drawings 30 18 13 16
3 Customer drawings to marketing 2 3 1 1
4 Checking and forwarding to customer 2 1 3 3
5 Getting approval from customer 447 98 396 93
05’ Customer comments 3 3 3 3
6 Preparation of manufacturing drawings 400 120 400 23
7 Issuing manufacturing drawings to planning 2 3 17 1
8 Issue from planning to other departments 1 2 2 1
08’ Revision 2 2 2 2
9 Material procurement-prototype
10 Processing tools required for manufacturing 603 228 486 167
11 Manufacturing- prototype
12 Material processing-final order execution 341 160 36 5
13 Manufacturing-final order execution
Organizing customer inspection through
14
marketing
3 3 3 3
16 Dispatch 8 130 18 15

9. Flow Chart Sequence
Processing and Customer Drawing to Customer
Checking
circulation Drawing marketing Approval
01 02 03 04 05
Manufacturing
Drawing
06
05’
Material Customer
Requirement
09 comments
Details of
10
material
16
07
11
Dispatch Issuing
Tools and dies
Drawing
14 13 12 08’ 08
Material Distributing to
Inspection Manufacturing Revision
Processing Departments

10. Calculating Average
Domestic Export
Activity no. Description Order-1 Order-2 Order-1 Order-2
1 Processing and circulation of customer order 2 2 3 3
2 Preparation of customer drawings 30 18 13 16
3 Customer drawings to marketing 2 3 1 1
4 Checking and forwarding to customer 2 1 3 3
5 Getting approval from customer 447 98 396 93
05’ Customer comments 3 3 3 3
6 Preparation of manufacturing drawings 400 120 400 23
7 Issuing manufacturing drawings to planning 2 3 17 1
8 Issue from planning to other departments 1 2 2 1
08’ Revision 2 2 2 2
9 Material procurement-prototype
10 Processing tools required for manufacturing 603 228 486 167
11 Manufacturing- prototype
12 Material processing-final order execution 341 160 36 5
13 Manufacturing-final order execution
Organizing customer inspection through
14
marketing
3 3 3 3
16 Dispatch 8 130 18 15
Time in days
Calculating Average of order 1 & 2

11. Average Time in days
Domestic Export
Activity no. Description
Average Average
1 Processing and circulation of customer order 2 3
2 Preparation of customer drawings 24 14.5
3 Customer drawings to marketing 2.5 1
4 Checking and forwarding to customer 1.5 3
5 Getting approval from customer 272.5 244.5
05’ Customer comments 3 3
6 Preparation of manufacturing drawings 260 211.5
7 Issuing manufacturing drawings to planning 2.5 9
8 Issue from planning to other departments 1.5 1.5
08’ Revision 2 2
9 Material procurement-prototype
10 Processing tools required for manufacturing 415.5 326.5
11 Manufacturing- prototype
12 Material processing-final order execution 250.5 20.5
13 Manufacturing-final order execution
14 Organizing customer inspection through marketing 3 3
16 Dispatch 69 16.5

12. Question1:
Develop a network representation of the execution
Of an order for distribution transformers at DTCL.

13. Question1:
Develop a network representation of the execution
of an order for distribution transformers at DTCL.
Answer 1:
Nodal Network
PERT AON

14. PERT CHART
02 03 04 05 05’
01 06
D1
D1
09
10 11 07
08
08’
12
16 14 13

15. AON CHART
02 03 04 05 05’
01 06
09 10 11 07
08
08’
16 14 13 12

16. Question 2:
1. Use the network and develop time estimates for
execution of the order.
2. What are the key activities that require better
managerial control.

17. Question 2:
1. Use the network and develop time estimates for
execution of the order.
2. What are the key activities that require better
managerial control.
Answer 2:
• Calculate critical path time ( Domestic & Export)
• Identify the critical activities ( Domestic & Export)

18. For
Domestic Order

19. PERT CHART: Domestic Order
3
02 03 04 05 05’
24 2.5 1.5
01 272.5 D1
2 06 05 0
D1
260 0
09 2.5
10 11 07
415.5 08
1.5
2 08’
250.5
69 3 12
16 14 13

20. PERT CHART: Domestic Order
02 03 04 05 05’
24 2.5 1.5 272.5 3
01 0
06 D1
2 D1
260 0
09 2.5
10 11 07
Critical Path: 415.5 08
1.5
01-> 02-> 03->04->06
->10->07->08->08’->12-
>-13->14->16 2 08’
250.5
69 3 12
16 14 13

21. Answer 2: Domestic Order
Total Lead time = Time taken by critical path
= Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)
Total Lead time = 1034 days
The key activities that require better managerial control are:
01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16
• This activities can be crashed
• Time associated with each of this critical activity can be optimized.
Slacks
• 05:Real Float = 403 days,
• 05 & 05’ :Real Float = 400

22. For
Export Order

23. PERT CHART: Export Order
3
02 03 04 05 05’
14.5 1 3
01 244.5 D1
3 06 05 0
D1
211.5 0
09 9
10 11 07
326.5 08
1.5
2 08’
20.5
16.5 3 12
16 14 13

24. PERT CHART: Export Order
3
02 03 04 05 05’
14.5 1 3
01 244.5 D1
3 06 05 0
D1
211.5 0
09 9
10 11 07
Critical Path: 326.5 08
1.5
01-> 02-> 03->04->06
->10->07->08->08’->12-
>-13->14->16 2 08’
20.5
16.5 3 12
16 14 13

25. Answer 2: Export Order
Total Lead time = Time taken by critical path
= Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)
Total Lead time = 612 days
The key activities that require better managerial control are:
01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16
• This activities can be crashed
• Time associated with each of this critical activity can be optimized.
Slacks
• 05: Real float = 294 days,
• 05 & 05’: Real Float = 290 days,

26. Question 3:
1. Can you identify activities that require immediate
attention. In order to reduce execution time.
2. How can DTCL organize the manufacture of
transformers so that there will be a significant
reduction in execution lead time.

27. Question 3:
1. Can you identify activities that require immediate
attention in order to reduce execution time.
2. How can DTCL organize the manufacture of
transformers so that there will be a significant
reduction in execution lead time.
Answer 3:
1. Draw AON chart. Group activities to work stations. The works station
having the most balanced delay ( very high or very low time) compared
to other work station needs to be given first attention.
2. Then reararnge the activities and group them to work stations and try
reducing the balanced delay.

28. Flow Chart Sequence
Processing and Customer Drawing to Customer
Checking
circulation Drawing marketing Approval
01 02 03 04 05
Manufacturing
Drawing
06
W1 Engineer Drawing 05’
W2 Marketing Dept Material
09
Customer
Requirement comments
W3 Production Dept
Details of
10
material
16
07
11
Dispatch Issuing
Tools and dies
Drawing
14 13 12 08’ 08
Material Distributing to
Inspection Manufacturing Revision
Processing Departments

29. For
Domestic Order

30. AON: Domestic Order
24 2.5 1.5 272.5 3
02 03 04 05 05’
2 260
01 06
2.5
W1 Engineer Drawing 09 10 11 07
W2 Marketing Dept 415.5
1.5 08
W3 Production Dept
2
3 08’
69 250.5
16 14 13 12

31. AON: Domestic Order
W1 W2 W3
04,05,05', 08,08',09,10,11
Activities 01,02,03,06,07
14,16 ,12,13
2+24+2.5 1.5+272.5+3 1.5+2+415.5
Time +260+2.5 +3+69 +250.5
Total Time 291 days 349 days 669.5 days
Total Processing Time
Tp = 291 + 349 + 669.5
Tp = 1309.5 days
Cycle time
CL= Max ( T1,T2,T3) = Max( 291,249,669.5)
CL = 669.5 days
Balance Delay
Bd = ( n CL - Tp ) X 100 = (3 X 669.5 – 1309 ) X 100
n CL 3 X 669.5
Bd = 34.82%

32. Rearranging Flow Chart Sequence
Processing and Customer Drawing to Customer
Checking
circulation Drawing marketing Approval
01 02 03 04 05
Manufacturing
W1 Engineer Drawing
Drawing
06
05’
W2 Marketing Dept Material Customer
Requirement
09 comments
W3 Production Dept
Procurement
W4 Dept Details of
10
material
16
07
11
Dispatch Issuing
Tools and dies
Drawing
14 13 12 08’ 08
Material Distributing to
Inspection Manufacturing Revision
Processing Departments

33. Rerranging AON: Domestic Order
24 2.5 1.5 272.5 3
02 03 04 05 05’
2 260
01 06
2.5
W1 Engineer Drawing
09 10 11 07
W2 Marketing Dept
415.5
1.5 08
W3 Production Dept
Procurement
W4 Dept
2
08’
69 3 250.5
16 14 13 12

34. Rearranging AON: Domestic Order
W1 W2 W3 W4
04,05,05',
Activities 01,02,03,06,07 14,16
08,08',12,13 09,10,11
2+24+2.5 1.5+272.5+3 1.5+2
Time +260+2.5 +3+69 +250.5
415.5
Total
291 days 349 days 254 days 415.5 days
Time
Total Processing Time
Tp = 291 + 349 + 254 + 415.5
Tp = 1309.5 days Balanced Delay
Cycle time reduced by
CL= Max ( T1,T2,T3,T4) = Max( 291,249,254,415.5) 39%
CL = 415.5 days
Balance Delay
Bd = ( n CL - Tp ) X 100 = (3 X 415.5 – 1309 ) X 100
n CL 3 X 415.5
Bd = 21.23%

35. Answer 3: Domestic Order
1. The activities that require immediate attention is the
procurement as it takes 415.5 days.
2. It can be done by proper vendor management
• By ensuring delivery on time
• Properly forecasting the expected demand
• Adopting practices to reduce time on logistics
• Better inventory management of raw materials with proper
defined reorder level.
Keep 4 works stations
W1 W2 W3 W4
01,02,03,06 04,05,05',
Activities ,07 14,16
08,08',12,13 09,10,11

36. For
Export Order

37. AON: Export Order
14.5 1 3 244.5 3
02 03 04 05 05’
3 211.5
01 06
9
W1 Engineer Drawing 09 10 11 07
W2 Marketing Dept 326.5
1.5 08
W3 Production Dept
2
3 08’
16.5 20.5
16 14 13 12

38. AON: Export Order
W1 W2 W3
04,05,05', 08,08',09,10,11
Activities 01,02,03,06,07
14,16 ,12,13
Time 3+14.5+1+211.5+9 3+244.5+3+3+16.5 1.5+2+326.5+20.5
Total Time 239 days 270 days 350.5 days
Total Processing Time
Tp = 239 + 270 + 350.5
Tp = 859.5 days
Cycle time
CL= Max ( T1,T2,T3) = Max(239,270.350.5)
CL = 350.5 days
Balance Delay
Bd = ( n CL - Tp ) X 100 = (3 X 350.5 – 859.5 ) X 100
n CL 3 X 350.5
Bd = 18.26%

39. Rearranging AON: Export Order
14.5 1 3 244.5 3
02 03 04 05 05’
3 211.5
01 06
9
Engineer
W1 Drawing
09 10 11 07
W2 Marketing Dept
326.5
1.5 08
W3 Production Dept
Procurement 2
W4 Dept 16.5 3 20.5
08’
16 14 13 12

40. Rearranging AON: Export Order
W1 W2 W3 W4
04,05,05',
Activities 01,02,03,06,07 14,16
08,08',12,13 09,10,11
3+14.5+1+211.5 3+244.5+3+3+1
Time +9 6.5
1.5+2+326.5 20.5
Total
Time 239 days 270 days 330 days 20.5 days
Total Processing Time
Tp = 239 + 270 + 330 + 20.5
Tp = 859.5 days Balanced Delay
Cycle time increased by
CL= Max ( T1,T2,T3,T4) = Max(239,270,330,20.5) 91%
CL = 330 days
Balance Delay
Bd = ( n CL - Tp ) X 100 = (3 X 330 – 859.5 ) X 100
n CL 3 X 330.5
Bd = 34.88 %

41. Answer 3: Export Order
1. The activities that require immediate attention is the
production as it takes 350.5 days.
2. It can be done by proper optimizing the process
• By avoiding abnormal wastage
• Reducing the error or failure rates
• Finding optimal product mix stratigies
• Maintaining a constant lead time and safety stock
Keep 3 works stations
W1 W2 W3
04,05,05', 08,08',09,10,11
Activities 01,02,03,06,07
14,16 ,12,13

42. Thank You
Questions Please????