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




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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.



                                               Page 2 of 6
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.




                                        Page 3 of 6
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
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



                                              Page 5 of 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 *****************


                                                          Page 6 of 6

Som case study - dont bother me i cant cope

  • 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. Page 2 of 6
  • 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. Page 3 of 6
  • 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 Page 5 of 6
  • 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 ***************** Page 6 of 6