Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 3.1Q
Summary Introduction
To find:The number of railcars to be placed in two-unit trains so that a thin but sufficientsupply of coal between the mine and plant can be maintained.
Introduction:The production system of every company or organization must ensure that an adequate flow of inventory is maintained. The flow of inventory is managed by reorder point systems where the inventory levels are monitored so that when the stock drops to a certain minimum point, said as reorder point, the next stock can be made ready.
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Gestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system?
Gestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system? (Hint: Recall that r is the average processing time per container, not per individual part.)
Usage at a work center is 300 parts per day, and a standard container holds 25 parts. It takesan average of .12 day for a container to complete a circuit from the time a kanban card isreceived until the container is returned empty. Compute the number of kanban cards (containers) needed if X = .20.
Chapter 12 Solutions
Practical Operations Management
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- A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 98 parts per hour while running. The manager has assigned an inefficiency factor of .28 to the center. Standard containers are designed to hold 6 dozen parts each. The cycle time for parts containers is about 105 minutes.arrow_forwardCletus and Spike Company is implementing a Kanban system for a heated water bowl manufacturing line that produces 1,500 units in an eight-hour day. The heating element has a waiting time of 30 minutes and a processing time of one hour. The container size is 40 heating elements, and the safety factor is 15 percent. What is the maximum inventory of heating elements in the system?arrow_forwardDiscuss the advantages and disadvantages of each of the following features ofjust-in-time:c. Kanban information system.arrow_forward
- Hartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry. The owner, Janet Hartley, has asked you to reduce inventory by introducing a kanban system. After several hours ofanalysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you needfor this connector?arrow_forwardHartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry.The owner, Janet Hartley, has asked you to reduce inventory byintroducing a kanban system. After several hours of analysis, youdevelop the following data for scanner connectors used in onework cell. How many kanbans do you need for this connector?arrow_forwardYou are asked to analyze the kanban system of LeWin, a French manufacturer of gaming devices. One of the workstations feeding the assembly line produces part M670N. The daily demand for M670N is 1,800 units. The average processing time per unit is 0.003day. LeWin's records show that the average container spends 1.05 days waiting at the feeder workstation. The container for M670N can hold 300 units. Twele containers are authroized for the part. Recall that p is the average processing time per container, not per individual part. Find the value of the policy variable, a, that expresses the amount of implied safety stock in this system.arrow_forward
- Suppose a lean work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 180 minutes for a container to circulate.a. How many containers are required to operate this system?b. What is the maximum inventory that can accumulate?c. How many kanban cards are needed?arrow_forwardKrupp Refrigeration, Inc., is trying to reduce inventory and wants you to install a kanban system for compressors on one of itsassembly lines. Determine the size of the kanban and the number of kanbans (containers) needed.Setup cost = $10Annual holding cost per compressor = $100Daily production = 200 compressorsAnnual usage = 25,000 (50 weeks * 5 days each * daily usage of 100 compressors)Lead time = 3 daysSafety stock = 1 2 day’s production of compressorsarrow_forwardThe following formula is used to calculate the number of bins for a given part needed for a single Kanban loop between two cells in a production system: N = D * (Tw + Tp) * (1+r) / c Where: N = Total number of bins for a given part D = Planned usage rate for the part (parts per day) Tw = Average waiting time for replenishment of parts (fraction of a day) Tp = Average production time for a container of parts (fraction of a day) c = Capacity of the standard container (number of parts) r = Risk factor set by management (expressed as a decimal fraction) At Company A, the boxing station at the end of an electric switch production line has a planned daily usage rate of 150,000 switches per day and receives the switches to be boxed from the preceding station in containers which hold 3% of the day’s demand. It takes 90 minutes for the preceding station to fill a bin and 9 minutes for the filled bin to be delivered to the boxing station. How many such bins are needed for the Kanban loop to work…arrow_forward
- Markland First National Bank of Rolla utilizes kanban techniques in its check processing facility. The following information is known about the process. Each kanban container can hold 50 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.25.a. If there are 20 kanban containers in use, what is the current daily demand of the check processing facility?b. If the muda or the waste in the system were eliminated completely, how many containers would then be needed?arrow_forwardSuppose a lean work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 180 minutes for a container to circulate.a. How many containers are required to operate thissystem?b. What is the maximum inventory that can accumulate?c. How many kanban cards are needed?arrow_forwardDiscuss the advantages and disadvantages of each of the following features of just-in-time:a. Small lot sizes.b. Integrated purchasing and inventory control.c. Kanban information system.arrow_forward
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