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PRESENTED BY• SOMNATH CHATTERJEE• SHUBRA DAS • RINKU SAHA• PUJJYA GARGEE• SUJOY SENAPATI• SUBIR GHOSH• DEBJIT CHATTERJEE
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Process layouts are found primarily in job shops, or firms that produce customized, low-volume products.
This type of layout is highly flexible in terms of handling changes in product design and being able to customize products.
This type of layout is suitable for customized products produced in very small batches.
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Processing an insurance claim for an accident.
Admitting a patient to a hospital.
Performing the 30,000-mile maintenance on a car.
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Before answering specific questions, it is useful to make a diagram of the overall process:
Order Entry
Wash Bowl, Mix Ingredients Resource: Self
Capacity: 3 Cycle Time: 6 minutes
Fill Tray Resource: Roommate
Capacity: 1 Cycle Time: 2 minutes
Bake Resource: Oven
Capacity: 1 Cycle Time: 9 minutes
Start Oven Resource: Roommate, Oven
Capacity: 1 Cycle Time: 1 minute
Remove Resource: Roommate
Capacity: 1 Cycle Time: 0 minutes
Cool Resource: none
Capacity: 1 Cycle Time: 5 minutes
Pack, Collect Money Resource: Roommate
Capacity: 1 Cycle Time: 3 minutes
Activity Resource Cycle Time
Order Entry E-mail 0 minutes
Wash Bowl, Mix Self 6 minutes
Fill Tray Self 2 minutes
Prepare Oven Roommate 1 minute
Bake Oven 9 minutes
Remove Roommate 0 minutes
Cool None 5 minutes
Pack, Collect Money Roommate 3 minutes
1. How long will it take for you to fill a rush order?
Assuming this order is for one dozen cookies, we will need to do the following:Therefore, the minimum time to fill an order is 26
minutes
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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled
each night?
The process’s bottleneck is to put the cookies in the oven and set the thermostat and Timer.
Which activity is the process’s bottleneck?
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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled
each night?
4 hours per each night = 4 hours * 60 minutes= 240 minutes
Cycle Time = The Duration of the bottleneck= (Setting thermostat and Timer) + (Baking Cookies)= 1 minute + 9 minute= 10 minutes
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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled
each night?
Maximum no of orders we can fill in a night = (No of minutes per night-Duration of First Setup) Cycle Time + 1
= (240 – 26) + 1 10= 22.4 orders~ 22 orders
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Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled
each night?
Explanation: This is because the first order takes 26 minutes for the first batch of cookies to finish and each subsequent batch takes 10 minutes because it has reached steady state. Thus, we take 4 hours worth of time, minus off 26 minutes for the first batch and then divide
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How much of your own and your roommate’s valuable time will it take to fill each order?
Own Time:• Mixing Ingredients 6 minutes• Dishing out cookies onto tray 2 minutes
• Total Time 8 minutes
Roommate’s Time:• Setting thermostat and timer 1 minutes• Packing the cookies 2 minutes• Collecting payment 1 minutes
• Total Time 4 minutes
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Should you give any discount for people who order two dozen cookies? If so, how much? Will it take any longer to fill a two-dozen cookie order than a one-dozen cookie order?
• First, let's consider costs. • The cost of ingredients and the box are the same, no matter how many dozen you bake. • So the only resource that might differ with the size of the batch is labor.
It looks like we can afford to give a discount for two-dozen orders. A two-dozen order doesn't cost twice as much as a one-dozen order.
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Question 4 (continued)Activity Resource Cycle Time
Order Entry E-mail 0 minutes
Wash Bowl, Mix Self 6 minutes
Fill Tray 1 Self 2 minutes
Fill Tray 2 Self 2 minutes
Prepare Oven 1 Roommate 1 minute
Bake 1 Oven 9 minutes
Remove 1 Roommate 0 minutes
Cool 1 None 5 minutes
Prepare Oven 2 Roommate 1 minute
Bake 2 Oven 9 minutes
Remove 2 Roommate 0 minutes
Cool 2 None 5 minutes
Pack 1 Roommate 2 minutes
Pack 2 Roommate 2 minutes
Collect Money Roommate 1 minute
TWO DOZEN
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Question 4 (continued)
Self 8
Roommate 4
Total Labor Minutes 12
Self 10
Roommate 7
Total Labor Minutes 17
ONE DOZEN TWO DOZEN
# Cookies in
Batch
Minutes Cost Cost per Dozen
1 dozen 12 $2.40 $2.40
2 dozen 17 $3.40 $1.70
Let's assume your time is worth $12 per hour. Your labor costs would be:
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How many food processors and baking trays will Kristen need?
• The food processor is only used in the mixing stage.• we ought to be able to see that the processor is idle for long periods of time, and that the real bottleneck is the oven. • Buying another food processor won't improve the productivity of the system at all.• There are only three kinds of activities that require a tray: filling the tray, baking (including preparing the oven), and cooling. On the other hand, trays are cheap, and it would be a shame if we ever had to keep the oven (the bottleneck) waiting for lack of a tray. It is reasonable to have "plenty" of trays on hand, whether that means five, or ten, or whatever.
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The bottleneck is the oven, which means there is no point in looking at expanding the capacity of any other resource unless the operation's baking capacity is expanded first. If we had two ovens, we could make cookies faster. Even with the second oven, the oven stage will still be the bottleneck.
Question 6Is there a bottleneck operation in your production process that you can expand cheaply? What is the effect of adding another oven? How much would you be willing to pay for an additional oven?
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