Exercises

Ch. 4-7-10-11

OSCM a.a. 2015-2016

 Littles Law
The Cocoa and Coffee Company always has 3 members of staff
serving drinks and snacks. It is open for 10 hours every day and the
average time it takes for any customer to be served is 4 minutes.
a. How many customers can they serve in a day?
b. How many new customers could they serve in a day if they had 5
servers?

N servers=3 TT=10h WC=4 min

a) CT=WC/n servers=4/3=1.33 min
WIP=(10*60)/1.33=451 customers

b) CT=4/5=0.8 min
WIP=(10*60)/0.8= 750 customers

OSCM a.a. 2015-2016
 Littles Law

A call center wants to be able to process 60 000

calls in 8 hours. The average duration of a call is
5 minutes. What is the number of employees to
hire?
TT=8h
WC=5min
WIP=60 000

CT=(8*60)/60 000= 0.008 min
N of employees= 5/0.008= 625

OSCM a.a. 2015-2016

 Balancing Loss & Bottleneck

A Congolese bank has a 5-stage process for new account

applications. Based on the following information,
a. what is the idle time in each process cycle and what is the
percentage balancing loss?
b. what would be the new idle time and balancing loss
percentage if you can combine different stages (consider
the information that the bank works 80 hours per week
and it has to process 170 applications every week)

OSCM a.a. 2015-2016

 Balancing Loss & Bottleneck

An ideal balance where work is But if work is not equally allocated the cycle
allocated equally between the stages .me will increase and balancing losses
will occur
3 Cycle .me = 2.5 mins 3.5 Cycle .me = 3.0 mins
2.5 3
3.0
2.5
2 2.5

Load
Load

2 2.3 2.2
1.5 Work allocated to stage
1.5
1 Idle .me
1
0.5 0.5
0 0
1 2 3 4 1 2 3 4
Stage Stage
Calcula.ng balancing loss:

Idle .me every cycle =(3.0 - 2.3) +
Idle time (3.0 - 2.5) +
Balancing loss = (3.0 - 2.2) = 2.0 mins
Total Working time
Balancing loss = 2.0 / (4 x 3.0)
=0.1667
=16.67%

OSCM a.a. 2015-2016

 Balancing Loss & Bottleneck

a) Balancing loss= (22-10)+(22-16)+(22-22)+(22-8)+(22-12)

5*22

= 42 = 38,2%
110

OSCM a.a. 2015-2016

 Balancing Loss & Bottleneck

a) Required CT= (80 hrs x 60 mins) = 4.800 = 28.2 min

170 170

Stages to be combined:
stage 1 and stage 2= 10 min + 16 min=26 min
stage 4 and stage 5= 8 min + 12 min = 20 min


Balancing loss= (26-26)+(26-22)+(26-20) = 10 = 12,8%
3*26 78

OSCM a.a. 2015-2016

 Throughput EfYiciency

A mail order company in Moscow receives orders; types in the

customer details, checks the information provided from the
customers and that the products are in stock; conYirms payment and
processes the order. During an average 8-hours day, 480 orders are
processed. Generally, 200 orders are waiting to be processed. It
takes 15 minutes for all activities required to process an order. What
is the throughput efYiciency of the process?

CT=(60*8)/480=1min
TT=200*1=200
Throughput EfJiciency=WC/TT=15/200=7.5%

OSCM a.a. 2015-2016

 Sequencing Decisions

Jackie is a trainee reporter. On Monday, she arrives at work,

pleased that she cleared all of her work on Friday. She Yinds
Yive new jobs to be completed and decides to start straight
away:
Job Processing time Due date
A 3 days 7
B 1 day 3
C 9 days 14
D 4 days 4
E 6 days 10

Compare FIFO and Due Date rule based on average time in
process and average lateness.


OSCM a.a. 2015-2016
 Sequencing Decisions
FIFO
Module Process time Start time Finished time Due date Delay
A 3 0 3 7 0
B 1 3 4 3 1
C 9 4 13 14 0
D 4 13 17 4 13
E 6 17 23 10 13
Average Time in Process = 60 days/5= 12days
Average Lateness= 27/5=5,4 days
DUE DATE
Module Process time Start time Finished time Due date Delay
B 1 0 1 3 0
D 4 1 5 4 1
A 3 5 8 7 1
E 6 8 14 10 4
C 9 14 23 14 9

Average Time in Process = 51 days/5= 10,2 days

Average Lateness= 15/5=3 days
OSCM a.a. 2015-2016
 OEE

A painting machine has a loading time of 180 hours per

week. Each week, changeovers for new paints take 22
hours. The machine idles on average 12 hours each week.
Maintenance time is about 8 hours. Moreover, when the
painting machine is running, it works at around the 97%
of its maximum speed and, after painting, 18% of the
painted products are rejected due to some defects. What
is the availability rate, speed rate, quality rate and the
OEE of the machine? ( for calculations, keep 2 digits after
comma)

OSCM a.a. 2015-2016

 OEE

Availability loss= 8h (maintenance) + 22h (changeovers)= 30h

Speed loss= 12h (idling time) + 3% of available time after considering idling time
Quality loss=18%*time after speed and availability losses taken into consideration

LT= 180
TOT=180-20=150
NOT=150-12-0.03*138=138-4.14=133.86
VOT=133.86*0.82=109.77

a=TOT/LT=0.83 p=NOT/TOT=0.89 q=VOT/NOT=0.82

OEE=a*p*q=0.61= 61%

OSCM a.a. 2015-2016

 OEE
A capping machine in a glass bottling plant based in Poland has a loading
time of 152 hours per week. Each week, set-up average 9 hours,
breakdowns 3 hours and unplanned downtime (no work) 2 hours. The
machine lies idle for 4 hours each week whilst waiting for materials to be
delivered. When the machine is running, it averages 89% of its rated
speed and, after production, 4% of the parts processed are found to be
defective. What are the availability, performance, quality rates and the
overall equipment effectiveness?
LT=152h
TOT=152-9-3-2=152-14=138h
NOT=138-4-(138-4)*0.11=138-18.74= 119.21h
VOT=119.21*0.96=114.56h
a=138/152=0.9079=90.79% p=119.21/138=0.8642=86.42%
q=114.56/119.26=0.9606=96.06%
OEE=a*p*q=75.37%

OSCM a.a. 2015-2016

 Design Capacity, Effective
Capacity and Actual Output

A soup can plant has a design capacity of 30.000 cans per week
and the line is operated 18 hours per day, 5 days per week.
Planned lost production accounts for 6 hours while
unplanned, and avoidable, losses account for 22% of the
design capacity. What is the efYiciency of the facility?

DESIGN CAPACITY= 18*5=90hours
EFFECTIVE CAPACITY= 90-6=84hours
ACTUAL OUTPUT= 84-0,22*90=84-19,8= 64.2 hours
EFFICIENCY= AO/EC=0,76=76%

OSCM a.a. 2015-2016

 Design Capacity, Effective
Capacity and Actual Output

The design capacity, effective capacity and efYiciency for a

car licensing operation are shown in the following table:




What are the expected output levels for each process?
What are the utilization rates for each process?



OSCM a.a. 2015-2016
 Design Capacity, Effective
Capacity and Actual Output

a)
AO document checking!x/128 000=.95=>x=121 600
AO licence production! x/900 000=.15=> x=135 000
AO distribution! x/160 000=.75=> x=120 000

b)
Utilization document checking= 121 000/145 000=83.45%
Utilization licence checking= 135 000/1 250 000=10.8%
Utilization distribution=120 000/165 000=72.7%

OSCM a.a. 2015-2016