jones manufacturing company
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Jones Manufacturing Company. Aicha Thiam, Daniel Pugh, Nathan Palmer, Jamie Munger, and Douglas Ashburn MBA 513. Current Process Map. Solution A. Reduce lot size…. Changes the cycle time but not enough - PowerPoint PPT PresentationTRANSCRIPT
Jones Manufacturing Company
Aicha Thiam, Daniel Pugh, Nathan Palmer, Jamie Munger, and Douglas Ashburn
MBA 513
Table 1: Hours to complete 20,000 unit order Lot size =
2000
Moving Time Working Time Total Target
Lead Time272 hrs(16hrs * 17process)
283 hrs 20mns(16 hrs 40mns * 17 process)
555 hrs 20mns
Cycle Time(balanced line)
16hrs 40mns150 hrs(16 hrs 40mns * 9 lots)
Complete Order 705 hrs 20mns 200 hours
Solution A
Table 2: Hours to complete 20,000 unit orderProblem: Lead Time
Solution A: Reduce lot size to 200
Moving Time Working Time Total Target
Lead Time221 hours(13hrs * 17process)
28 hrs 20mns(1hr 40mns * 17 process)
249 hrs 20mns
Cycle Time (balanced line)
1hr 40mns165 hours(1hr 40mns * 99 lots)
Complete Order 414hrs 20mns 200 hours
• Reduce lot size…. Changes the cycle time but not enough• The problem is with the “informational downtime” involved
with moving the parts: work orders, scheduling, etc…
• Introduce a “load- and go-” system
Table 3: Hours to complete 20,000 unit orderProblem: Lead Time and Moving Time
Solution B: Reduce lot size to 200 & Switch- and go- system
Moving Time Working Time Total Target
Lead Time5 hrs 40mns(20mns * 17process)
28 hrs 20mns(1hr 40mns * 17 process)
34 hrs
Cycle Time(balanced line)
1hr 40mns 165 hrs(1hr 40mns * 99 lots)
Complete Order 199 hrs 200 hours
Solution B
• Same chaotic movement of the forklifts around the factory• Solution:
– Create an “assembly-line” setup in the unused space
Table 4: Cost/Savings of Revised Factory Layout from Forklifts to Conveyors
Capital Investment Savings/ month Payback Period
Move 48 Machines $144,000
Install Gravity Conveyor $19,040
Eliminate Forklifts and Drivers $26,720
Totals: $163,040 $26,720 6 months
Assume: 33.33% increase of factory capacity
• Pros:– Increase to capacity does not require more forklifts/drivers
– Cost per bracket would be reduced
• Cons:– Time to establish new system may exceed time allotted
– Reduced flexibility for the Small Parts Manufacturing Facility
• Final decision is strategic.