OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Chapter 6, Problem 11P
a.
Summary Introduction
Interpretation:If there are 20 Kanban containers in use, the current daily demand of the check processing is to be determined.
Concept Introduction:Kanban system is a concept implemented under the Lean concepts and Just in time management system. It is useful in achieving the manufacturing efficiency of any organization.
b.
Summary Introduction
Interpretation:The number of containers required by the facility in order to avoid the wastage completely is to be computed.
Concept Introduction:Kanban system is a concept implemented under the Lean concepts and Just in time management system.It is useful in achieving the manufacturing efficiency of any organization.
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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?
Krupp 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 compressors
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?
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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? (Hint: Recall that r is the average processing time per container, not per individual part.)arrow_forwardA fabrication cell at Spradley’s Sprockets uses the pull method to supply gears to an assembly line. George Jitson is in charge of the assembly line, which requires 500 gears per day. Containers typically wait 0.20 day in the fabrication cell. Each container holds 20 gears, and one container requires 1.8 days in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 5 percent, how many containers should Jitson authorize for the gear replenishment system?arrow_forwardDETERMINING THE NUMBER OF KANBAN CONTAINERS Hobbs Bakery produces short runs of cakes that are shipped to grocery stores. The owner, Ken Hobbs,wants to try to reduce inventory by changing to a kanban system. He has developed the following dataand asked you to finish the project.Production lead time = Wait time + Material handling time + Processing time = 2 daysDaily demand = 500 cakesSafety stock = 12 dayContainer size (determined on a production order size EOQ basis) = 250 cakesarrow_forward
- Tej Dhakar’s company wants to establish kanbans tofeed a newly established work cell. The following data have beenprovided. How many kanbans are needed?Daily demand 250 unitsLead time 12 daySafety stock 14 dayKanban size 50 unitsarrow_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_forwardAssume that a plant operates 2,000 hours per year and the demand rate for parts is 100,000 units per year. The circulation time for each kanban container is 24 hours. How many kanban containers are needed for a container size of 100 parts? What would be the effect of reducing the container size to 60 parts What is the takt time for this process? What takt time is needed for 80,000 units per year?arrow_forward
- A fabrication cell at Spradley's Sprockets uses the pull method to supply gears to an assembly line. George Jitson is in charge of the assembly line, which requires 624 gears per day. Containers typically wait 1.6 day in the fabrication cell. Each container holds 80 gears, and one container requires 1.1 day in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 0.06, how many containers should Jitson authorize for the replenishment system? Jitson should authorize ___ containersarrow_forwardA supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication center produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many kanban card sets are needed?arrow_forwardBhojraj Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 30 parts. A part requires 7 minutes in milling and 9 minutes in finishing. The move time between the two operations for a complete batch is 4 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 2 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Line Item Description Traditional Philosophy Lean Manufacturing Philosophy Value-added time Non-value-added time Total lead time Value-added ratio (as a percent)arrow_forward
- A supplier of instrument gauge clusters uses a Kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication centre produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many Kanban card sets are neededarrow_forwardUsage 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.arrow_forwardIn the "push" system, products are manufactured and stored as buffers in anticipation of demand.Select one:a. Falseb. Truearrow_forward
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