The document analyzes two production lines, Line A and Line B, that are currently producing below desired levels. For Line A, hiring two additional workers and running two hours of overtime daily is recommended to increase production from 315 to 420 units per day. For Line B, hiring one additional worker and running one hour of overtime is recommended to increase production from 140 to 210 units per day. Both solutions maintain over 85% efficiency while meeting production goals with minimal additional costs.
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1. Case Study – “Don’t bother me, I can’t cope it”
Case Study Don’t Bother Me, I can’t Cope
Submission Date 3-Nov-2009
Class EPGP– 09-10
Subject SOM
Instructor Prof. N. Ravichandran
Prof. Rohit Kapoor
Submitted by
Rajendra Inani
Table of contents
Summary of Analysis and Results...................................................................................................2
Line A – Existing Production 315 Units / Day................................................................................4
Line A –Desired Production 420 Units/ Day...................................................................................5
Line B –Existing Production 140 Units/ Day..................................................................................6
Line B –Desired Production 210 Units/ Day...................................................................................6
Page 1 of 6
2. Case Study – “Don’t bother me, I can’t cope it”
Summary of Analysis and Results
On analysis of the given case, as described in subsequent sections following is the
recommendations.
Line A: Solution 1 is suitable, if this order has to be continued for more than 91 working
days.
# Units Per Unit Per Day Regular # of Regular Over Wages / Contribution
Produced Contribution Contribution wages worker hours Time Day + / Day /
/ Day (Rs) (Rs) (Rs) s Hours OverTime Worker
420 30 12600 18 9 8 0 1296 1256
(Desired)
420 30 12600 18 7 8 2 1428 1596
(Desired)
315 (Old) 30 9450 18 7 8 0 1008 1206
Solution 1: This recommendation requires hiring two additional resources, which involves Rs.
12000 training cost and per day wages is Rs. 1296.
Solution 2: This solution has continuing with 7 workers with 2 hours of overtime each day. The
differential wage per day including overtime is Rs. 132 in this case. (12000 / 132 = 90.90)
Line B: Solution 1 is suitable
# Units Per Unit Per Day Regular # of Regular Over Wages / Contribution
Produced Contribution Contribution wages worker hours Time Day + OT / Day /
/ Day (Rs) (Rs) (Rs) s Hours +Rejection Worker
Expenses
210 30 6300 18 3 8 1 529.2 1923.6
(Desired)
210 30 6300 18 4 8 0 576 1431
(Desired)
140 (Old) 30 4200 18 2 8 0 288 1956
Solution 1: This recommendation requires hiring one additional resource, which involves Rs.
6000 training cost. In this case, the Efficiency of operation is maintained at 100%, but involved
overtime for 1 worker for 1 hour. (Actually making 16 extra unit consuming 36 minutes on 3rd
workbench), considering wages of Overtime and 1% rejection due to fatigue.
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3. Case Study – “Don’t bother me, I can’t cope it”
Solution 2: This recommendation requires hiring two additional resource, which involves Rs.
12000 training cost. But wages exceeds to Rs. 576, more than solution 1.
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4. Case Study – “Don’t bother me, I can’t cope it”
Line A – Existing Production 315 Units / Day
Activity Activity Time (Sec) Immediate Predecessor
1 30 None
2 50 None
3 40 1
4 50 1
5 20 2
6 10 3
7 10 4,5
8 20 2
9 10 6
10 40 9
11 20 7
12 30 7
13 50 9
14 50 10
15 10 11
16 40 8,12
Total Lead Time 480
Cycle Time for 315 Units / Day = 420 Mins / 315 Units = 1.33 Minutes/ Unit = 80 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 6 Work Stations
Presently, Mr. Sane is using 7 workstations against the needed 6 work Stations as following.
W/S Activities Time (Seconds) Time (Minutes) Idle Time (Minutes)
1 1,3 70 1.166667 0.163333
2 2,5 70 1.166667 0.163333
3 4,8 70 1.166667 0.163333
4 6,9,13 70 1.166667 0.163333
5 7,10,11 70 1.166667 0.163333
6 14,15 60 1 0.33
7 12,16 70 1.166667 0.163333
Available Time (Minutes) = 7 W/S x Cycle Time 1.33 Mins = 9.31
Idle time 1.31
Efficiency % = 8 Mins / 9.31 Mins = 85.93
Page 4 of 6
5. Case Study – “Don’t bother me, I can’t cope it”
Line A –Desired Production 420 Units/ Day
Cycle Time for 420 Units / Day = 420 Mins / 420 Units = 1 Minutes/ Unit = 60 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 8 Work Stations
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 2 50 504
2 1,5 50 504
3 3,8 60 420
4 4,6,7 70 360
5 9,13 60 420
6 10,11 60 420
7 14,15 60 420
8 12,16 70 360
With the given nature of certain tasks, we cannot group them in a way that each Work Station can have
less or equal to 60 Seconds (Cycle Time) of tasks. Thus, Work Stations 4 and 8 would have Bottleneck
capacity of 360 Units / Day, which is less then desired 420 Units/ Day.
With Work Stations = 9, following organization would be suitable.
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 1 30 504
2 2 50 504
3 3,5 60 420
4 4,6 60 360
5 10 40 420
6 7,11,12 60 420
7 9,13 60 420
8 14,15 60 360
9 8,16 60
Available Time (Minutes) = 9 W/S x 420 Mins each day 3780
Utilized time = Lead time 8 Mins x Units Producted 420 Units 3360
Efficiency % = Utilized Time / Available Time 88.89
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6. Case Study – “Don’t bother me, I can’t cope it”
Line B –Existing Production 140 Units/ Day
Activity Activity Time (Sec) Immediate Predecessor
a 40 None
b 50 None
c 70 a
d 20 a
e 50 a
f 40 b,c
g 60 e
h 30 d,f,g
Lead Time 360 6 Minutes
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 a,b,c,d 180 140
2 e,f,g,h 180 140
Available Time (Minutes) = 2 W/S x 420 Mins each day 840
Utilized time = Lead time 6 Mins x Units Producted 140 Units 840
Efficiency % = Utilized Time / Available Time 100.00
Line B –Desired Production 210 Units/ Day
Cycle Time for 210 Units / Day = 420 Mins / 210 Units = 2 Minutes/ Unit = 120 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 3 Work Stations
W/S Activities Time (Seconds) Maximum Production Production Capacity with 1 Hour Overtime
Capacity (# of Units / day)
1 a,b, d 110 229 262 (Not used)
2 c,e 120 210 240 (Not used)
3 f,g,h 130 194 222 (Used for extra 16 Units only – 36 Minutes)
Available Time (Minutes) = 3 W/S x 420 Mins each day 1260
Utilized time = Lead time 6 Mins x Units Producted 210 Units 1260
Efficiency % = Utilized Time / Available Time 100.00
************End of assignment *****************
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