Littlefield Technologies Simulation(1)

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School

Brigham Young University, Idaho *

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Course

361

Subject

Industrial Engineering

Date

Dec 6, 2023

Type

docx

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2

Uploaded by logancrooks2011

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Littlefield Technologies Simulation Team 5; lehi05 Logan Crooks Kevin Murray As a group we wanted to make sure that we were able to meet to make the most effective decisions. However, we had some difficulty making this happen and you can see this in our decision making. On day 73.05 we bought an additional machine at station 1 and on day 73.08 we bought an additional machine at station 2. Before buying these machines, our lead times were 3.28 days and approaching 3.72 at the highest point on day 74, because we bought the additional machines, we were able to bring our lead times down to 0.47 by day 82 before they began to rise again. Between the period of day 54 (when we went over 1 day of lead time) and day 81 (when we were able to fall below 1 day of lead time), we estimate that Littlefield Technologies lost about $60.487.50 to rebates. Plot of Number of Jobs Accepted Each Day Plot of Utilization of Station 1
Moving on in the simulation, as demand continued to increase, we again faced the same issues where our lead grew to 4.1 days at its height on day 137, between days 122 (where it rose above 1 day of lead time) and day 146 (where it fell back below 1 day of lead time). We estimate that we lost about $117,412.50 due to the failures to address the shop floor’s needs. As noted in the figure above, we also purchased additional machines on day 135 for Station 3 and for Station 1 to help reduce our lead times and realize better utilization of our capital. After the height of our demand began to slow down and our product began to be phased out, we saw that our Utilization of our various stations weren’t as high, and we began to consider the possibility of retired some machines so we could invest it for Interest Revenues alternatively. Utilization of Station 1 Utilization of Station 2 Utilization of Station 3 Based on what we saw up to day 214, and the downward trend of demand and order, we opted to sell 1 machine in each station. We believe we made the correct decision as none of the Utilization for any stations reached full capacity for the rest of the simulation and we were able to make Interest Gains towards our Bash Balance. In conclusion we were not able to give the sim the full attention it needed and as such we lost out on $400,000 worth of revenue that had to be paid back out as rebates due to our long lead times at the height of our demand. We believe we made the correct decisions regarding our machine purchases and retiring those machines, although, we realize if had been able to give the sim the attention it needed, we would have been to make those correct decisions when they needed to occur to minimize our losses through rebates or to maximize our gains through interest gains alternatively to the loss we could incur by purchasing additional machines. This was a great learning experience on realizing the analysis needed to maintain a stable production of orders and on how to minimize loss (or maximize gain) in production.
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