Scribd Logo
Upload

Welcome to Scribd!

  • 22 views

    Session 6: Measuring Capacity in Customized and Variety Driven Processes

    Uploaded by

    Aniket Borse
    This document discusses measuring capacity in customized and variety driven processes. It provides an example of how batch size impacts capacity for a batch process. The key insights are that careful analysis of physical flow is important to understand a system's performance, the bottleneck can shift based on product mix, and capacity is dependent on factors like product mix, batch sizes, and technology choice rather than being an absolute number. Flexibility allows shifting production to high demand products and increases capacity utilization and expected sales compared to a lack of flexibility. Flexibility is most valuable when capacity is close to expected demand.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Session 6: Measuring Capacity in Customized and Variety Driven Processes

    Uploaded by

    Aniket Borse
    22 views30 pages
    This document discusses measuring capacity in customized and variety driven processes. It provides an example of how batch size impacts capacity for a batch process. The key insights are that careful analysis of physical flow is important to understand a system's performance, the bottleneck can shift based on product mix, and capacity is dependent on factors like product mix, batch sizes, and technology choice rather than being an absolute number. Flexibility allows shifting production to high demand products and increases capacity utilization and expected sales compared to a lack of flexibility. Flexibility is most valuable when capacity is close to expected demand.

    Original Description:

    Session1 p

    Original Title

    Session6 p

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses measuring capacity in customized and variety driven processes. It provides an example of how batch size impacts capacity for a batch process. The key insights are that careful analysis of physical flow is important to understand a system's performance, the bottleneck can shift based on product mix, and capacity is dependent on factors like product mix, batch sizes, and technology choice rather than being an absolute number. Flexibility allows shifting production to high demand products and increases capacity utilization and expected sales compared to a lack of flexibility. Flexibility is most valuable when capacity is close to expected demand.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views30 pages

    Session 6: Measuring Capacity in Customized and Variety Driven Processes

    Uploaded by

    Aniket Borse
    This document discusses measuring capacity in customized and variety driven processes. It provides an example of how batch size impacts capacity for a batch process. The key insights are that careful analysis of physical flow is important to understand a system's performance, the bottleneck can shift based on product mix, and capacity is dependent on factors like product mix, batch sizes, and technology choice rather than being an absolute number. Flexibility allows shifting production to high demand products and increases capacity utilization and expected sales compared to a lack of flexibility. Flexibility is most valuable when capacity is close to expected demand.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 30

    Session 6:

    Measuring capacity in customized


    and variety driven processes
    Impact of Batch size on Capacity
    Process Flow Diagram

    Preparation

    Artwork
    Generation
    Manual Drill
    Setup (min) = 29 run: 0/panel (7)

    Inspect & Punch Tooling 15 320/panel Metallize


    Shear Holes
    20 0.5/panel 10 0.5/panel CNC
    Micronic (1) 10 0.75/panel

    240 16/panel

    1 panel = 8 boards
    Image Transfer
    Dry Film Photoresist

    Panel Prep Laminate & Develop Electroplate Strip DFPR Etch & Tin
    Expose Strip

    5 0.2/panel 20 2/panel 20 0.2/panel25 8.5/panel 5 0.2/panel 10 0.2/panel

    Fabrication
    Punch Press

    Soldermask Solder Dip 50 1/board Inspect, Test


    and Pack
    45 1.5/panel 30 0.5/panel CNC Router
    45 1.5/board

    150 0.5/board
    Rework
    Decisions
    • Design

    – Equipment selection- type, degree of


    automation, capacity
    – Flexibility of the process
    – Information flow design
    – Technology choice
    Technology choice
    • Drilling: manual vs CNC
    Breakeven analysis:
    Total time on CNC = Total time on manual
    240 min + (2 min/board)*B = 15 min + (40min/board) * B
    B = 5.9 boards

    • Profile: Punch press vs CNC router


    Total time on CNC router = total time on punch press
    150 min + (0.5 min/board)*b = 50 min + (1 min/board) * B
    B = 200 boards
    Capacity Analysis:
    Dry Film Photoresist
    • Assume order size of 1 panel (8 boards)
    Capacity Analysis:
    Dry Film Photoresist
    • Assume order size of 1 panel (8 boards)
    Panel prep: 5min/order +(0.2min/panel x 1panel/ord) =
    5.2 min/order
    Max orders/day = (480 min/day)/(5.2 min/order) = 92.3 orders/day
    Max boards/day = 92.3 x 8 = 736.5 boards/day

    Set Up Run Total Daily Capacity Daily Capacity


    Time/Order Time/Order Time/Order in Orders in Boards
    Panel & 5 0.2 min 5.2 min 92.3 ord/day 736.5 boards/day
    Prep
    Lam & Exp 20 2.0 min 22.0 min 21.8 174.4
    Develop 20 0.2 min 20.2 min 23.8 190.4
    Capacity as a function of order size
    Order Size Order Size Lam & Exp Daily Daily
    (boards) (Panels) Process Capacity Capacity
    Time (min) (Orders) (Boards)

    8 1 22 21.8 174.4
    80 10 40 12 =(480/40) 960

    800 100 220 2.18 1745

    • Maximum capacity assuming no set-up=


    480/(2 min/panel) = 240 panels = 1920 boards/day
    Batch process example

    Set-up C1 Produce C1 Set-up C2 Produce C2


    60 min 1 min/unit 60 min 1 min/unit

    Capacity = ?
    Batch process example

    Set-up C1 Produce C1 Set-up C2 Produce C2


    60 min 1 min/unit 60 min 1 min/unit

    )"&$ℎ +%,-
    !"#"$%&' =
    /0&"1 +-&2# &%3- + (670$-++%89 /%3- : )"&$ℎ +%,-)
    Batch size vs. Capacity
    Batch size vs. Capacity
    0.45
    0.4
    0.35
    0.3
    0.25
    0.2
    0.15
    0.1
    0.05
    0
    0 50 100 150 200

    Capacity without set-up for a batch size = 90/(180) = 0.5units/min


    Capacity with set-ups = 90/(120+180) = 0.3 units/min
    Set-ups are causing loss of production capacity of (0.5-0.3 = 0.2 units/min)
    Insights: Job shops/Batch Process
    • Careful analysis of physical flow is important to
    analyze the performance of a system
    • Bottleneck shifts according to product mix
    • Product mix is a management choice
    – Driven by business strategy
    – Capacity is not an absolute number
    • Product mix, batch sizes, technology choice etc. determine
    the capacity
    How much variety is good?
    Batch Process
    • Process interruptions
    • Set-up times and variety trade-offs
    • Managing processes with set-up times
    – Contrast Ford and Toyota
    – External and internal set-ups
    Complexity of variety
    • 3000 different types of elements in 50
    different colors
    • Each element has a unique mold and incurs
    set-up time
    • 55 billion elements per year [~1 lac elements
    per minute]
    • @3000 element types ~ 18 million units of
    each type of element
    Capacity Type: Dedicated vs.
    Flexibility
    Capacity pooling with flexible
    manufacturing
    • Consider the following stylized situation faced by Maruti Suzuki
    – They have 10 production facilities
    – They have 10 vehicles to produce (Swift, Dzire, Versa, SX4…..).
    – Each plant is capable of producing 100 units.
    – Demand for each product is Normally distributed with mean 100 and standard
    deviation 40.
    – If demand exceeds capacity, sales are lost.
    No flexibility to total flexibility

    Cachon 2008
    Benefits of flexibility
    • Flexibility allows production shifts to high selling products to avoid lost sales.
    • Consider a two plant, two product example and two configurations, no flexibility and
    total flexibility:
    Correlation of demand
    {
    cov ( x, y) = E ( x − µ x ) ( y − µ y )}
    cov ( x, y)
    ρ xy =
    σ xσ y

    −1 ≤ ρ xy ≤ +1

    σ pool = σ x2 + σ y2 + 2 ρ xyσ xσ y ≤ σ x + σ y
    Benefits of flexibility
    • Adding flexibility increases capacity utilization and expected sales:

    1000
    Total flexibility

    20 links
    950
    These data are
    collected via simulation
    Expected sales, units

    900 12 links

    11 links

    850

    No flexibility

    800
    80 85 90 95 100
    Expected capacity utilization, %

    • Note: 20 links can provide nearly the same performance as total flexibility!
    Cachon 2008
    When is flexibility valuable?
    • Observations:
    1000 20 links, 1
    C=1500 chain – Flexibility is most valuable when
    C=1250
    C=1130 capacity approximately equals
    900
    C=1000 expected demand.
    – Flexibility is least valuable when
    800 C=880
    capacity is very high or very low.
    Expected sales, units

    No flexibility

    700 C=750

    600

    500
    C=500

    400
    60 70 80 90 100
    Expected capacity utilization, %

    C = total capacity of all ten plants

    You might also like