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1. Positively Rivet Inc. is a small machine shop that produces sheet metal products. It had one line dedicated to the making of light-duty vent hood shells, but because of strong demand it recently added a second line. The new line makes use of higher-capacity automated equipment and is all single-machine workstations, but consists of the same basic four processes as the old line. See table below: Old Line New Line Process # of machines Process time (minutes) # of machines Process time (minutes) Punching 4 4.0 1 0.50 Braking 4 5.0 1 0.50 Assembly 2 3.0 1 0.48 Finishing 1 1.2 1 0.48 Over the past three months, the old line has averaged 315 parts per 8 hour shift with an average WIP level of 400 parts. The new line has averaged 680 parts per 8 hour shift with an average WIP level of 350 parts. Management is dissatisfied with the old line because it is achieving a lower throughput rate with a higher WIP level compared to the new line. Is this thinking correct? Your job is to evaluate both lines relative to their potential. a) Find rb, To, and Wo for both lines. Why do you think the old line has larger Critical WIP? rb= To= Wo= Old Line: Why? rb= To= Wo= b) Compare the performance of each line to its respective MEP performance. Is management correct in criticizing the old line for its inefficiency? New Line: c) If you were the manager and needed more throughput, what would you consider first to get more throughput (answer the question separately for each line). Lean line: Fat line:

1. Positively Rivet Inc. is a small machine shop that produces sheet metal products. It had one line dedicated to the making of light-duty vent hood shells, but because of strong demand it recently added a second line. The new line makes use of higher-capacity automated equipment and is all single-machine workstations, but consists of the same basic four processes as the old line. See table below: Old Line New Line Process # of machines Process time (minutes) # of machines Process time (minutes) Punching 4 4.0 1 0.50 Braking 4 5.0 1 0.50 Assembly 2 3.0 1 0.48 Finishing 1 1.2 1 0.48 Over the past three months, the old line has averaged 315 parts per 8 hour shift with an average WIP level of 400 parts. The new line has averaged 680 parts per 8 hour shift with an average WIP level of 350 parts. Management is dissatisfied with the old line because it is achieving a lower throughput rate with a higher WIP level compared to the new line. Is this thinking correct? Your job is to evaluate both lines relative to their potential. a) Find rb, To, and Wo for both lines. Why do you think the old line has larger Critical WIP? rb= To= Wo= Old Line: Why? rb= To= Wo= b) Compare the performance of each line to its respective MEP performance. Is management correct in criticizing the old line for its inefficiency? New Line: c) If you were the manager and needed more throughput, what would you consider first to get more throughput (answer the question separately for each line). Lean line: Fat line:

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Positively Rivet Inc. is a small machine shop that produces sheet metal products. It had one line dedicated to the making of light-duty vent hood shells, but because of strong demand it recently added a second line. The new line makes use of higher-capacity automated equipment and is all single-machine workstations, but consists of the same basic four processes as the old line. See table below: Old Line New Line Process # of machines Process time (minutes) # of machines Process time (minutes) Punching 4 4.0 1 0.50 Braking 4 5.0 1 0.50 Assembly 2 3.0 1 0.48 Finishing 1 1.2 1 0.48 Over the past three months, the old line has averaged 315 parts per 8 hour shift with an average WIP level of 400 parts. The new line has averaged 680 parts per 8 hour shift with an average WIP level of 350 parts. Management is dissatisfied with the old line because it is achieving a lower throughput rate with a higher WIP level compared to the new line. Is this thinking correct? Your job is to evaluate both lines relative to their potential. a) Find rb, To, and Wo for both lines. Why do you think the old line has larger Critical WIP? rb= To= Wo= Old Line:
Transcribed Image Text:1. Positively Rivet Inc. is a small machine shop that produces sheet metal products. It had one line dedicated to the making of light-duty vent hood shells, but because of strong demand it recently added a second line. The new line makes use of higher-capacity automated equipment and is all single-machine workstations, but consists of the same basic four processes as the old line. See table below: Old Line New Line Process # of machines Process time (minutes) # of machines Process time (minutes) Punching 4 4.0 1 0.50 Braking 4 5.0 1 0.50 Assembly 2 3.0 1 0.48 Finishing 1 1.2 1 0.48 Over the past three months, the old line has averaged 315 parts per 8 hour shift with an average WIP level of 400 parts. The new line has averaged 680 parts per 8 hour shift with an average WIP level of 350 parts. Management is dissatisfied with the old line because it is achieving a lower throughput rate with a higher WIP level compared to the new line. Is this thinking correct? Your job is to evaluate both lines relative to their potential. a) Find rb, To, and Wo for both lines. Why do you think the old line has larger Critical WIP? rb= To= Wo= Old Line:
Why? rb= To= Wo= b) Compare the performance of each line to its respective MEP performance. Is management correct in criticizing the old line for its inefficiency? New Line: c) If you were the manager and needed more throughput, what would you consider first to get more throughput (answer the question separately for each line). Lean line: Fat line:
Transcribed Image Text:Why? rb= To= Wo= b) Compare the performance of each line to its respective MEP performance. Is management correct in criticizing the old line for its inefficiency? New Line: c) If you were the manager and needed more throughput, what would you consider first to get more throughput (answer the question separately for each line). Lean line: Fat line:
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