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P1 has a production rate of 20 units/hour, P2=30 units/hour, P3=10 units per hour, P4=4 units/hour, P5=1 unit(s) per hour for each P5 and P6=5
P1 has a production rate of 20 units/hour, P2=30 units/hour, P3=10 units per hour, P4=4 units/hour, P5=1 unit(s) per hour for each P5 and P6=5 units per hour. Operation P4 occurs seperately from and simultaneously with operations P1-P3. Operation P5 has three parallel and identical lines; therefore, each part only needs to go through one of the three lines. Consider the following two independent improvements: Improvement 1: Change station P4 into two connected stations (P4-1 and P4-2, connected in series) that have process times of 4min/ unit and 6min/ unit respectively. Improvement 2: Add two additional P5 stations to give you 5 parallel and identical lines. a) Which of the two improvements will provide the largest increase in capacity? What is the yearly capacity of the system with the improvement you suggested? Assume the process runs 40 hours per weeks and 48 weeks per year. a) Which of the two improvements will provide the largest increase in capacity? What is the yearly capacity of the system with the improvement you suggested? Assume the process runs 40 hours per weeks and 48 weeks per year. Improvement increases capacity because it improves the bottleneck. The new bottleneck is station P since the original bottleneck has a process time of minutes per unit now. The new yearly capacity would be units per year. b) Which of the two improvements will provide the biggest decrease in throughput time? What is the new throughput with the improvement you suggested? Improvement decreases throughput time to minutes per unit. c) Which of the two would you recommend implementing? Why? I recommend Improvement because it improves our (bottleneck/throughput time) and increases our capacity. Therefore, we also increase the number of potential sales, and thus revenue
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