Question
MetalCraft Works makes sheet metal products. They started with one line making pick-up tailgates. Because demand increased, they added a second line with better machines.
MetalCraft Works makes sheet metal products. They started with one line making pick-up tailgates. Because demand increased, they added a second line with better machines. The new line keeps the same four processes as the old one. The table below shows the processes, machine rates, machines per station, and average times for a job in each station. In the last three months, the old line made 315 parts a day with a WIP of 400 parts. The new line did 680 parts a day with a WIP of 350 parts. The managers aren't happy with the old line because it has less output and a higher WIP.
Your job is to check how well both lines are doing using the given information. Answer these questions:
a) Which line needs more critical Work-in-Process (WIP)? Show your calculations. [10]
b) Check how well both lines are doing compared to their practical worst-case scenarios. What can you say about their efficiency and processing capabilities? Is it fair for managers to say the old line is inefficient? [10]
c) As the manager, what would you do first to make the old line work better? And what about the new line? [5]
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