Stonehaven Case Analysis Essay

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Stonehaven, Inc.
Case Analysis

March 19, 2013

Part A
For this part of the analysis, consider each department in the Gdansk factory in isolation. Assume that the rest of the production system has no impact on the department you are considering. Assume that material handling times are negligible and ignore variability in processing times.

1. For the typical 100-pair batch, what is the daily capacity and manufacturing lead time within each of the following departments?

a. Cutting

8 hrs/day x 60 min/hr = 480 min/day

Machine 1 = (0.05 x 4)(100) + (5.25 x 4) = 41 min/batch
Machine 2 = (0.05 x 4)(100) + (5.00 x 4) = 40 min/batch
Machine 3 = (0.04 x 4)(100) + (4.00 x 4) = 32 min/batch

Manufacturing Lead Time (MLT)
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Therefore, the time given is the time it takes to stamp 1 of the 4 components on one machine. Another assumption I have made is the workers performing the stitching are all equally paced. It takes each worker the exact same amount of time to perform their duties and pass the product along to the next group.

Part B

Now consider the factory as a system, and take into account interactions between the departments.

3. Assuming production is done in 100-pair batches, what is the factory’s daily capacity?

Cutting 41 min/batch
Stitching 133 min/batch
Lasting 33.2 min/batch

Capacity of the Factory = 480 min/day ÷ 133 min/batch = 3.6 batches/day

4. What is the total MLT for a 100-pair batch?

Cutting = 41 min/batch
Kitting = 10 min/batch
Stitching = 133 min/batch
Steaming = 6 hrs x 60 min = 360 min/batch
Lasting = 33.2 min/batch

TOTAL MLT = 577.2 min/batch

Part C

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

6. Focus only on your highest priorities for improving the production process at Stonehaven’s Gdansk factory (be specific). Explain why they are important. What actions do you recommend? How would you implement your recommendations? What do you predict will be the consequences?

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