Suppose that demand exceeds available capacity

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Reference no: EM132285304

Consider a process that requires two tasks to produce a widget. The first task is performed by a cutting machine that finishes one unit every 3/8 minutes. The second task is performed by a turning machine that runs continuously. The tuning machine can finish each unit in 0.5 minutes. Work in process inventory (WIP) is allowed to accumulate between the stations. Each day, work starts at 8am and ends at 4pm, with no breaks during the day. At 8am, both stages are ready to start processing and there is no WIP in the system.

Management is concerned about the quality of units that emerge from Task 1. They have observed that the cutting tool wears down throughout the day, which reduces the precision of parts processed at Task 1. To remedy this, management proposes that after every 240 units, the cutting tool on the machine will be replaced. Replacement will take 30 minutes, during which time Task 1 will be unable to process any units. After replacement, Task 1 then immediately begins to process units, and the processing times of both tasks are otherwise unaffected by this change. Assume that at 8 am, the cutting tool in work station 1 has just been replaced (i.e., it doesn’t need to be replaced until 240 units are cut) and the turning machine in station 2 has been off all night.

1. Under this new scheme, what is the average capacity of Task 1 (in units per minute)?

2. Suppose that demand exceeds available capacity and both stations operate at their maximum rate throughout the work day. What is the maximum WIP level between Tasks 1 and 2 (in units)?

3. Continuing the previous question, what is the average WIP level between Tasks 1 and 2 (in units)?

4. Continuing the previous question, what is the throughput time in WIP in minutes, i.e., the average time a unit spends in the WIP? (You do not need to include processing times at the stations.)

Reference no: EM132285304

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