X Opoly

1260 Words Nov 3rd, 2012 6 Pages
Case Analysis
“X-Opoly, Inc.”

1 Summary
The text deals with the topic of developing and producing a board game, called X-Opoly. The game is similar to the famous game ‘’Monopoly’’. It was the idea of two students. Their business has grown rapidly. This year they are expecting that they will sell 50,000 units. Over next 5 years the sales will grow 25 percent annually.
The order of the game has to be differentiated in ordering a new game and ordering a game, which was already produced. For every new game one employee of the art department and the client have to set the design. The required time can vary because it depends on the customer’s specification. The next step is printing. In the printing department the design of the
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Capacity per year = time available x stations = days x hours per daytotal task time x stations = 200days x 7.5h0.18h x stations = 8,333 units for 1 station = 50,000 units for 6 stations
= 158,333 units for 19 stations

Capacity per day = Capacity p.a. / 200days = 791,67units for 19 persons

Number of theoretical workstations:
NT = ∑task time / cycle time = 650108 = 6.02 select 7 workstations

The line’s maximum capacity amounts to 791.67 units per day assuming that it is operated for 7.5 hours. Assuming that X-Opoly operates 200 days per year, the capacity is 58,333 units per year. Compared with the expected demand the capacity is three times higher than the demand (50,000 units). Therefore there is an overcapacity of more than 100,000. One consequence could be a falling price and the production of waste. A fall in the price would lead to a decline of the return on investment as well as the cash flow. That is why it is necessary to use fewer stations in order to save resources.

In the calculation it can be said that they only 7 stations are needed. With this number of workstations one could achieve the highest efficiency at this moment. But the company will grow rapidly. Therefore they had to add new stations every year.
However, the company expects that its sales will grow 25 percent annually for the next five years. As illustrated in Table 1 the demand after 5 years will be approx.

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