group ab2 naturalblends

8/13/2019 Group AB2 NaturalBlends

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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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group ab2 naturalblends

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