AIC NETBOOKS

Assembly Line

Work Work Work

station 1 station 2 station 3

A, B C D
0.3 0.4 0.3
minute minute minute
Assembly Line Performance

•  Line Balancing

–  Assignment of tasks which need to be

done to produce/assemble one unit of a
product to individual workstations
without exceeding the set cycle time
limit to minimize the number of
workstations
•  Workstation: A physical stage in
production/assembly where a number of
tasks are done by one worker

•  Cycle Time : Maximum workload (in time

units) allowed at a workstation
•  Maximum throughput:1/CT
•  Theoretically minimum # of workstations
 Line Balancing
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3
•  Operating time: 40 hrs per week
•  Demand per week: 6000 units
 Line Balancing
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

0.2
B
40 hours x 60 minutes / hour 2400
CT = = = 0.4 minute
6,000 units 6000
0.1 A D 0.3
0.1 + 0.2 + 0.3 + 0.4 1.0
N= = = 2.5 workstations
0.4 0.4
C
0.4
 Line Balancing
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

0.2
B
40 hours x 60 minutes / hour 2400
CT = = = 0.4 minute
6,000 units 6000
0.1 A D 0.3
0.1 + 0.2 + 0.3 + 0.4 1.0
N= = = 2.5 workstations
0.4 0.4
C 3 workstations
0.4
 Line Balancing
WORK ELEMENT PRECEDENCE TIME (MIN)
A Press out sheet of fruit — 0.1
B Cut into strips A 0.2
C Outline fun shapes A 0.4
D Roll up and package B, C 0.3

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS
1 A 0.3 B, C

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS
1 A 0.3 B, C
B 0.1 C, D

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS
1 A 0.3 B, C
B 0.1 C, D
2 C 0.0 D

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION ELEMENT TIME ELEMENTS
1 A 0.3 B, C
B 0.1 C, D
2 C 0.0 D
3 D 0.1 none

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION Work
ELEMENT Work
TIME Work
ELEMENTS
station 1 station 2 station 3
1 A 0.3 B, C
B A, B C
0.1 D C, D
2 C 0.0 D
0.3 0.4 0.3
3 D minute 0.1
minute
none
minute

CT = 0.4
0.2
B N=3

0.1 A D 0.3

C
0.4
 Line Balancing
REMAINING REMAINING
WORKSTATION Work
ELEMENT Work
TIME Work
ELEMENTS
station 1 station 2 station 3
1 A 0.3 B, C
B A, B C
0.1 D C, D
2 C 0.0 D
0.3 0.4 0.3
3 D minute 0.1
minute
none
minute

CT = 0.4
0.2
B N=3

0.1 + 0.2 + 0.3 + 0.4 1.0

E= 0.1 A = D 0.3 = 83.3%
= 0.833
3(0.4) 1.2

C
0.4
KRISTEN’S COOKIES
Process Flowchart
Date: 9-30-02 Location: Graves Mountain
Analyst: TLR Process: Apple Sauce

Distance
Operation
Transport
Description

Storage
Inspect

(feet)
(min)
Time
Delay
Step
of
process

1 Unload apples from truck 20

2 Move to inspection station 100 ft
3 Weigh, inspect, sort 30
4 Move to storage 50 ft
5 Wait until needed 360
6 Move to peeler 20 ft
7 Apples peeled and cored 15
8 Soak in water until needed 20
9 Place in conveyor 5
10 Move to mixing area 20 ft
11 Weigh, inspect, sort 30
Page 1 0f 3 Total 480 190 ft
 Process Map
Customer Waiter Salad Chef Dinner Chef

N
Is order
Place order complete?

Y
Give soup or salad order to chef Prepare soup or
salad order

Give dinner order to chef Prepare dinner

order

Drink Get drinks for customer

Eat salad or Give order

soup Deliver salad or soup order to customer to waiter

Deliver dinner to customer Give order

Eat dinner to waiter

Receives check Deliver check to customer

Gives payment
to waiter Receive payment for meal

Credit
Cash or
Credit?

Cash
Collect change,
leave tip Bring change to customer

Run credit card through

Fill in tip
amount Return credit slip to customer

Collect tip
 Capacity

•  Capacity is the upper limit or

ceiling on the load that an
operating unit can handle.
 Capacity Types
•  Design capacity
–  maximum obtainable output
•  Effective capacity
–  Maximum capacity given product mix,
procedures and policies, scheduling
difficulties, human considerations,
operations, external forces and other doses
of reality.
•  Actual output
–  rate of output actually achieved--cannot
exceed effective capacity.
Efficiency and Utilization
Actual output
Efficiency =
Effective capacity

Actual output
Utilization =
Design capacity
Processing Time
Requirements &
Capacity Determination
 Capacity Planning?
•  Size and number of facilities
•  Size and number of equipment/
machines
•  Size of labor (personnel and shifts)
•  Subcontract
•  (Scheduling)
•  (Impact on Quality)
Example

Item X
Annual demand forecast (units) 2000.00
Standard processing time (hour/unit) 0.40
 Item X
Annual demand forecast (units) 2000.00
Standard processing time (hour/unit) 0.40

Operating time: 250 days per year; 8 hrs per day

How many machines (lines) needed
to make the product to satisfy all
demand?
Total Processing Time needed to
satisfy all demand:
2000 * 0.4 = 800 hours per year
Total Processing Time needed to
satisfy all demand:
2000 * 0.4 = 800 hours per year

Total Available Operating Time:

250*1*8 = 2000 hours per year
Total Processing Time needed to
satisfy all demand:
2000 * 0.4 = 800 hours per year

Total Available Operating Time:

250*1*8 = 2000 hours per year

A single machine (line) is sufficient.

 Item X
Annual demand forecast (units) 2000.00
Standard processing time (hour/unit) 0.40

[Dp]product
M=
N
 Item X
Annual demand forecast (units) 2000.00
Standard processing time (hour/unit) 0.40

[2000(0.4)] X
M= (250 days/year)(1 shift/day)(8 hours/shift)
 Item X
Annual demand forecast (units) 2000.00
Standard processing time (hour/unit) 0.40

800
M= = 0.4 ≈ 1 machine
2000
Effective Capacity ?
- Impact of Managerial Decisions
Multiple Products

Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70

Operating time: 250 days per year; 8 hrs per day

 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70

[Dp]product 1 + ... + [Dp]product n

M=
N
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70

[2000(0.4)]X + [6000(0.7)]Y
M= (250 days/year)(1 shift/day)(8 hours/shift)
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70

5000
M= = 2. 5 ≈ 3 machines
2000
Effective Capacity ?
- Impact of Operational Decisions
Capacity Cushion

Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Non-operating time % (C) = 15
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Non-operating time % (C) = 15

[Dp]product 1 + ... + [Dp]product n

M=
N[1 – (C/100)]
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Non-operating time % = 15

[2000(0.4)]X + [6000(0.7)]Y
M= (250 days/year)(1 shift/day)(8 hours/shift)(1.0 – 15/100)
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70

5000
M= = 2. 94 ≈ 3 machines
1700
Effective Capacity ?
- Impact of Operational Decisions
Lot sizing\Batching

Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Average lot size (units per run) 20.00 30.00
Standard setup time (hours) 1.00 1.20
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Average lot size (units per run) 20.00 30.00
Standard setup time (hours) 1.00 1.20

[Dp + (D/Q)s]product 1 + ... + [Dp + (D/Q)s]product n

M=
N[1 – (C/100)]
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Average lot size (units per run) 20.00 30.00
Standard setup time (hours) 1.00 1.20

[2000(0.4) + (2000/20)(1.00)]X + [6000(0.7) + (6000/30)(1.2)]Y

M= (250 days/year)(1 shift/day)(8 hours/shift)(1.0 – 15/100)
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Average lot size (units per run) 20.00 30.00
Standard setup time (hours) 1.00 1.20

[2000(0.4) + (2000/20)(1.00)]X + [6000(0.7) + (6000/30)(1.2)]Y

M= (250 days/year)(1 shift/day)(8 hours/shift)(1.0 – 15/100)
 Item X Y
Annual demand forecast (units) 2000.00 6000.00
Standard processing time (hour/unit) 0.40 0.70
Average lot size (units per run) 20.00 30.00
Standard setup time (hours) 1.00 1.20

5340
M = 1700 = 3. 14 ≈ 4 machines (versus 3 w/o lotsizing
considerations)
 Impact of Lean Production
Practices
•  Setup time reduction efforts

–  GM versus Toyota
 Impact of Lean Production
Practices
•  Setup time reduction efforts

–  GM versus Toyota

•  Reduction in capacity (machine +

labor) needs
•  Opportunity to increase variety
(mass customization)
 Process Capabilities

•  So far, we have looked at Cost-

Volume and Process Time
Requirements

•  Equally important is the Quality

Capabilities of the Processes
Impact of Poor Quality

•  Lower yields=>More capacity needed

•  Cost of low quality

 Process Capability
•  Yields (% of good output)
•  Typically acceptable: 0.26% loss of
output
•  Target: 0.0000034% loss of output
 Process Capability
•  Yields (% of good output)
•  Typically acceptable: 0.26% loss of
output
•  Target: 0.0000034% loss of output

•  Capability ‘ratios’ against

benchmark
Capacity
Strategies Forecast of
Planned unused
capacity capacity required
Capacity

Capacity
increment
Time between
increments

Time

(a) Expansionist strategy

Capacity
Strategies Forecast of
Planned use of
short-term options capacity required
Capacity

Capacity
increment
Time between
increments

Time

(b) Wait-and-see strategy

 Sequencing

Determining the order in which jobs

at a work center will be processed

Typically, (priority rules) simple

heuristics are used to select the
order in which jobs will be processed
 Quick experience

Five jobs (in the order that they have arrived) are waiting at the moment to be assigned to the
shopfloor.

How do you recommend to sequence the jobs? Why?

JOB Processing Time(days) Due Date (days from now)
A 2 7
B 8 16
C 4 4
D 10 17
E 5 15
F 12 18

Performance Measures
•  Job flow time : actual processing time +
waits
•  Job lateness : difference between actual job
completion time and the due date
•  Makespan : total time needed to complete a
group of jobs
•  Average number of jobs : WIP inventory
 Priority Rules
•  FCFS – first come first served
•  SPT – shortest processing time
•  EDD – earliest due date
•  CR – critical ratio
 FCFS

Job Sequence Processing Time Flow Time Due Date Lateness

A 2 2 7 0
B 8 10 16 0
C 4 14 4 10
D 10 24 17 7
E 5 29 15 14
F 12 41 18 23
Total 41 120 54

 SPT

Job Sequence Processing Time Flow Time Due Date Lateness
A 2 2 7 0
C 4 6 4 2
E 5 11 15 0
B 8 19 16 3
D 10 29 17 12
F 12 41 18 23
Total 41 108 40

 EDD

Job Sequence Processing Time Flow Time Due Date Lateness
C 4 4 4 0
A 2 6 7 0
E 5 11 15 0
B 8 19 16 3
D 10 29 17 12
F 12 41 18 23
Total 41 110 38

 CR

Jobsequence (t=0) Process time Due date CR
A 2 7 (7-0)/2 = 3.5
B 8 16 (16-0)/8 = 2.0
C 4 4 (4-0)/4 = 1.0 ****
D 10 17 (17-0)/10 = 1.7
E 5 15 (15-0)/5 = 3.0
F 12 18 (18-0)/12 = 1.5

Job seq (t=4) Process time Due date CR
A 2 7 (7-4)/2 = 1.5
B 8 16 (16-4)/8 = 1.5
C [ 1 ]
D 10 17 (17-4)/10 = 1.3
E 5 15 (15-4)/5 = 2.2
F 12 18 (18-4)/12 = 1.17 ****

 CR

Job Sequence Processing Time Flow Time Due Date Lateness

C 4 4 4 0
F 12 16 18 0
A 2 18 7 11
E 5 23 15 8
D 10 33 17 16
B 8 41 16 23
Total 41 133 58

Which rule to choose?
•  In general, they depend on the
specifics.
•  SPT always gives minimum flow time
and WIP.
•  In general, FCFS ve CR are perform
worst
•  EDD always minimizes lateness.
•  CR is useful in reducing lateness.