group ab2 naturalblends
TRANSCRIPT
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Group AB2
Aj it h S Nat h 13503
Komal Jalan 13523
Payal Singh 13533
Simran Malani 13545
Varun Chhabra - 13557
NATURAL BLENDS
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CASE OVERVIEW
Capacity
Extraction: 20,000 pounds/hour
Filtration: 20,000 pounds/hour
Concentration: 18,000 pounds/hour
Cycle time
Extraction: 20,000 pounds/hour + 10,000 pounds/30 minutes
Filtration: 20,000 pounds/hour + 10,000 pounds/30 minutes
Concentration: 18,000 pounds/hour + 9,000 pounds/30 minutes
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Q1(A) HOW MUCH ORANGE JUICE CONCENTRATE CAN BEPRODUCEDINONE 8-HOUR WORKDAY?
Cycle time: 2 hours
Bottleneck at concentration:
Extraction: 30,000 pounds/2 hours
Filtration: 30,000 pounds/2 hoursConcentration: 27,000 pounds/2 hours
13,500 pounds/hour
So, 13500 pounds/ hours * 8 hours= 1,08,000 pounds
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Q1(B) ASSUME EXTRACTION HAD PREVIOUSLY BEENSETUP FOR THE SIZE ORANGES BEING PROCESSED.
HOW MUCH IDLE TIME WILL THERE BE IN THEEXTRACTION OPERATION DURING ONE 8-HOURWORKDAY?
Process 2 (extraction) should wait and follow the operation time of Process 3since it should be shutting down for 30min for filter change after operate 90min.
Then during 8hr, process 2 have 4 idle times
(=8hrs/2hrs)
Idle time =4 x 30min = 120min / 2hrs
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Q2(A) IF YOU COULD ADD STORAGE CAPACITYSOMEWHERE BETWEEN STEPS TWO AND FOUR INTHIS PRODUCTION LINE IN ORDER TO INCREASEDAILY OUTPUT, WHERE WOULD YOU PLACE IT? HOWMUCH STORAGE WOULD YOU ADD?
We will put 1 storage between process 3
(filtration) and process 4 (concentration) with capacity 3000lbs toaccommodate the output from process 3 since the production timeand speed is not the same between process 3 and 4
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Q2(B) WHY ?
Process 3 after operate for 90min, it can produce 30,000 lbs oforange juice (20,000 lbs/hr)
But, the process 4 only have production capacity 18,000 lbs/hr andfor 90min operation it only can proceed 27,000 lbs
Meanwhile the total output fromprocess 3 are 30,000 lbs
So, in order to produce more output we can add storage capacitybetween process 3 & 4.
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Q3 A IF THE COST OF ADDING STORAGE WAS 30$/POUND ANDTHE COST OF REDUCING SETUP TIME BY 50% USING
ADDITIONAL FIXTURES WAS $20000 FOR THE FILTER PROCESS
AND $ 10000 FOR THE EXTRACTION PROCESS , WHAT ACTIONWOULD YOU RECOMMEND IN ORDER TO MAXIMISE THISOUTPUT OF THE PRODUCTION LINE?
Step 2: Extraction
Operation: 6 hours
Setup: 2 hours
Total production: 20,000*6=1,20,000 pounds in 8 hours
Average= 15,000 pounds/hour
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Step 3: Filtration
Operation: 6 hours
Setup: 2 hours
Total production: 20,000*6=1,20,000 pounds in 8 hours
Average= 15,000 pounds/hour
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Step 4: ConcentrationOperation: 8 hours
Production: 8*18,000 pounds= 1,44,000 pounds
Average: 18,000 pounds/hour
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Add storage capacity in step 2 & step 3 because they arebottleneck,
So, we can add storage capacity of 1,44,000-1,20,000=24,000
pounds
Q3(B)
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Reducing setup time means additional hour can be used for production.
(50% of setup time (2 hours)= 1 hour)
So, Increased production capacity for filtration and extraction: 20,000 pounds
Cost of additional capacity (step 2): 20,000*30 + 10,000=6,10,000 $
Cost of additional capacity (step 3): 20,000*30 + 20,000=6,20,000 $
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So, 20,000 pounds more can be produced if setup time isdecreased by 50%
If we dont consider bottleneck, reducing setup time for step 2should be recommended, because it processes same pounds at
step 3 does but It costs less.
Else we have to carry out both step 2 and step 3.
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Q4(A) HOW OFTEN DURING 8-HOUR WORKDAY WOULD YOUHAVEASETUPCHANGE IN THE EXTRACTION PROCESS ?
Minimum: 2 times of switch
Maximum: 6 times1,20,000/20,000= 6 times
8-6=2 hours
2 hours/ 20 minutes setup time= 6 times
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AVERAGE CAPACITY FOR FILTRATION
Action Time Production
Filtering 90mins 20000 x 1.5
Shut down time 30 0
Total 120mins 30000
Capacity 15000/hr
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AVERAGE CAPACITY FOR JUICE CONCENTRATION ANDEXTRACTION
Average capacity for juice concentration is 18000 pounds per hour.
Average capacity of extraction is a direct function of the number of setups per day done.
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SETTING UP EXTRACTION
To extract all three types of oranges, the minimum number of setup needed is two times a
day.
The maximum number of setups possible is 6 times a day.
The maximum number of setups is arrived with the assumption that theextraction process can run in cycles of one hour each.
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SETTING UP SIX TIMES A DAY
Particulars Per day Per weekNumber of extraction
runs per orange 2 12
Production per orange
40,000 pounds 240000 pounds
Total extraction runs 6 36
Total production 120,000 pounds 720,000 pounds
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PROFIT CALCULATIONS PER CONTRACT
Contract Number of
orders
Quantity
of orders
Contributi
on per
pound
Time per
order
Total time
for
contract
Total
volume in
pounds
Total
profit
A 24 8000 0.03 61.6 1478.4 192000 5760
B 18 16000 0.028 83.8 1508.4 288000 8064
C 15 24000 0.026 105.4 1581 360000 9360
D 10 18000 0.024 89.2 892 180000 4320
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PROFIT PER TIME FOR EACH CONTRACT
Contract Total time inmins Total profit Profit per time
A 1478.4 5760 3.896104
B 1508.4 8064 5.346062
C 1581 9360 5.920304
D 892 4320 4.843049
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WHAT TO MANUFACTURE?
Why cant B and C be produced together.
Time required in minutes Total time in hours
Total setup time
required(18+15)x 40 22
Total quantity16000 x 18 + 24000
x 15 = 38880030
Total hours per
week required52
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WHAT TO MANUFACTURE ?
Contracts C and D should be manufactured.
The total profit from the two contracts will be 13680.
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TIME TAKEN FOR BLENDING CONTRACT A
Time consumed in blending operation is a function of set up time and production time.
Rate Total time
Set up 40 mins / set up 40 mins
Production 22000pounds/ hr 21.6 mins
Total 61.6 mins
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