Scribd
Upload
122 views7 pages

Goldratt Simulation: Manufacturing Operations Management

This document summarizes a simulation of a production line with three products and shared resources. It finds that the blue resource and demand for product 1 are bottlenecks. A production plan is created that focuses on utilizing the blue resource fully and getting the magenta resource into production early. This plan satisfies all product demands and achieves a 4050 profit with 40.21% ROI. Key aspects of the plan include keeping the blue resource busy to support magenta production and deploying resources to facilitate magenta work.

Uploaded by

Vibhor Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
122 views7 pages

Goldratt Simulation: Manufacturing Operations Management

This document summarizes a simulation of a production line with three products and shared resources. It finds that the blue resource and demand for product 1 are bottlenecks. A production plan is created that focuses on utilizing the blue resource fully and getting the magenta resource into production early. This plan satisfies all product demands and achieves a 4050 profit with 40.21% ROI. Key aspects of the plan include keeping the blue resource busy to support magenta production and deploying resources to facilitate magenta work.

Uploaded by

Vibhor Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Goldratt Simulation

Submitted in partial fulfilment of the requirements of the course


Manufacturing Operations Management

Instructor: Prof. Prahalad Venkateshan


Academic Associate: Ms. Najma Barkat

Net Profit: 4050 (Satisfying Demand Completely)

Submitted on March 12, 2018 by


Group A15
Vatsalya Kumar
Vibhor Verma
Vivekananda Khatua
Yashasvi Ajit Joshi
Yuvraj Singh Thind
Deepti Mohan
Gyanesh Raj
Introduction
Parameter 350 of Goldratt Simulation has an objective of satisfying
demand of three different product using assembly line that to a large extent is shared by all
three products. The simulator tries to replicate real life scenario by randomizing the time
associated with the production and setup moreover there is also a probability of machine
breakdown that has to be taken into account while deciding the production plan. To
successfully devise a production plan we have first calculated utilisation of each machines
without including the setup time and then try to evaluate what is the utilisation of each
resource. After this we also analysed the production process of each product to identify what
other factors will constraint the production

Bottleneck for the Production line


1. Blue Resource
2. Demand for Product 1

Calculating Bottleneck
Utilisation Analysis
From the utilisation calculated we observed that blue is the most utilised resource as
for completion of all the order we have to achieve 94% [Exhibit 1] utilisation of Blue resource.
We also tried to calculate number of setups allowed for the blue resource which turns out to
be 14 [Exhibit 2]. Thus while deciding the production plan we have to ensure that blue resource
doesn’t remain idle.

Assembly line Analysis


After viewing the assembly line, we observed that product 1 does not require any of
the blue resource and hence we can produce a large amount of Product 1 without affecting
the production plan of, thus demand of the Product 1 is also a bottleneck for the profits that
we can achieve.
Other Observation
As per our analysis we also believe that magenta resource also requires a careful
planning. This is not highlighted in the utilisation number calculated for the magenta resource.
However, if we look into the position of magenta resource in the various production problem
is quite clear. In every single production line magenta resource is located way above which
means magenta resource cannot be deployed right from the start. Thus production plan has
to be designed in such a way that magenta resource is deployed as soon as possible.

Calculating Demand
Calculation for material required is shown in [Exhibit 3], After taking into account the
final demand for each of the material are as follows

MATERIAL REQUIRED
A 22
C 22
D 36
F 12
G 0
H 4

Strategy
Key idea in developing the strategy for successful completion of the demand
was as follows
 Ensuring that blue resource never remains idle and setups involved in blue resource
are way less then 14 (As in our calculation we haven’t included any time loss that may
occur due to machine breakdown)
 Blue resource has to be deployed in such a way that it keeps creating work for magenta
resource
 As none of the other resources present any major constraints they are deployed to
support the production of blue and magenta resource.

At the start of the simulation, we focused on two objectives completing the demand of
Product 1 and Deploying magenta resource as soon as possible. To achieve this, we deployed
blue resource at F2, along with cyan resource to support the production. Production is
continued till 20 and then blue resource is deployed to D3 and later on to D4 till 20 units are
produced. After production of 20 units in both the lines is complete we move blue resource to
F3 to facilitate production of remaining raw material and introduce a magenta resource at E6
to complete the production of raw material we have just produced. As soon as blue resource
is finished with the production at line F it is moved to line D to use rest of the blue resource at
line D. For a detailed production plan of blue resource please refer to Exhibit 5

Mean while red and brown resource are deployed at A2, A3 and C2. Logic for this
decision as well is to deploy magenta resource in production. As soon as we move blue from
F2, cyan resources are shifted to line A and C. As soon as brown and red resource are finished
with the production they are moved to D and H line thus finishing the task of these resources.

Magenta resources is bought into production in line B as soon as cyan resource start
producing. Thus completing our objective of getting magenta resource into production as soon
as possible. When cyan resource are finished with the production in line A and C, they are
moved to line H. This is in align with our strategy of deploying resources such that production
of magenta resource is supported. We also move one of the magenta resource from line B to
line H to further allow the production of product 3. It is important here to note that taking
magenta resource out of a line in the middle of production won’t affect our utilisation as
magenta resource has zero setup time.

As soon as magenta resource is done with the task at line H and line E, they are
moved to line F and B to facilitate the rest of production. Followed by the deployment of
magenta resource at line D to complete the production.

All the decision and time at which these decisions were taken are
mentioned in [Exhibit 4]. Please note that actual time of decision may vary significantly as the
decision sheet does not include factor of machine breakdown or variability in the setup time
and production time.

Result
Using this production plan we were able to meet the demands completely for all the
product and reported a profit of 4050 with ROI of 40.21%
Exhibits

Product Blue Green Cyan Red Magenta Brown


1 0 2 25 2 25 4
2 41 4 41 8 52 6
3 31 4 32 7 50 11

Product Blue Green Cyan Red Magenta Brown


1 0 20 250 20 250 40
2 1640 160 1640 320 2080 240
3 620 80 640 140 1000 220

Total 2260 260 2530 480 3330 500

Utilisation 94% 11% 53% 20% 69% 10%


Exhibit 1: Utilisation Calculation for various resource

Setups Allowed
Blue 14
Green 71
Cyan 113
Red 16
Magenta Inf
Brown 17
Exhibit 2: Setups Allowed

Resource Demand WIP Required


A 50 28 22
C 50 28 22
D 60 24 36
F 60 48 12
G 20 24 0
H 20 16 4
Exhibit 3: Raw Material Calculation
Day Hour Minute Blue Green Cyan Red Magenta Brown
0 0 0 F2 A9 F3 F4 A1 X X C1 A2
0 2 44 F2 X F3 F4 H1 X X C1 A2
0 4 22 F2 X F3 F4 H1 X X C1 H2
0 4 30 D3 X A3 C2 H1 X X C1 H2
0 5 6 D3 X A3 C2 F1 X X D1 H2
0 5 56 D3 X A3 C3 - B5 B5 - -
1 0 30 D3 X H8 C3 B5 B5
1 1 26 D4 X H8 C3 B5 E6
1 2 36 G6 X D2 D2 G5 E6
1 2 56 F2 F9 D2 D2 F8 E6
1 4 44 F2 X F3 F4 F8 E6
1 7 6 F2 X B5 F8
2 1 41 F2 X B5 E6
2 2 41 F2 D9 D8 E6
2 3 46 D3 X - -
3 2 36 D4 X
3 4 46 C6 X

Exhibit 4: Decision Sheet

Blue Resource
Position Logic
F2 Pushing Forward Production of product 3,
thus creating work for Magenta resource
D3 Same logic as above allowing Production
D4 of Product 3, to create work for Magenta
resource
F2 Using Blue Resource till 20 Production are
ready for production at G6
G6 Pushing 20 resource to create more work
for Magenta resource
F2 Finishing, what is left at F2
D3 Finishing remaining Production at D3 and
D4 D4
C5 Completing the Demand for Product 2
Exhibit 5: Detailed Production Plan for Blue Resource
Screenshot of “End of the Week Financial Statement

You might also like