Ravi Kumar (201518BT657)

Capacity Management at Littlefield Technologies

Group Name- team121

Team Members- Ravi Kumar (201518BT657)

Mukesh Kumar (201518BT606)

Vivek Sharma (201518BT652)

Jeevarathinam T V (200818ts761)

Introduction
Littlefield Technologies is a job shop which assembles Digital Satellite System receivers.
These receivers are assembled from kits of electronic components procured from a single
supplier. The assembly process consists of four steps carried out at 3 stations called board
stuffing, testing and tuning. The first step consists of mounting the components onto PC
Boards and soldering them. This is done at the board stuffing station. The digital components
are then briefly tested at the testing station in step 2. In the third step, key components
are tuned at the tuning station. Finally, the boards are exhaustively final tested in
step 4 at the testing station before delivery to the customer. Every receiver passes final
test.

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The virtual factory seems simple enough with 3 workstations viz. Stuffing, testing and tuning.
Buffers are placed before every workstation. The number of machines in each workstation is
different and carries a different cost.

Workstation Cost (In $)

1-Stuffing 90000
2-Testing 80000
3-Tuning 100000

Areas which would play a role in maximizing cash balance-

Major Decision Areas

According to us the major decision areas in the simulation will be-

Reorder Quantity
Reorder point
Safety Stock
Lot size
Maximum Inventory
Key Variables

The key variables that would affect the final decision areas include-
Supplier Lead time
Supplier lot size
Customer Demand
Inventory before each of the workstations
Utilization of each workstation
Cycle time
Takt time

Objectives-
To make money
To be efficient

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Actions we took to accomplish our objectives-

Reduce queues
Make sure there were always raw materials available
Get the best contract (Number 1) with the maximum revenues
Reduce lead times in order to fulfill contract number 1

Job arrivals-

The job arrivals kept constant during all simulation

So, at the moment we found the perfect number of machines for each station, we did not
have to change it for the rest of simulation

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 Ravi Kumar (201518BT657)

Station 1

The utilization was very high in station 1 in the beginning of the simulation
The big utilization generated big queues
So we decided to buy more machines to reduce the utilization.

The station was having big queues in the beginning of the simulation.
So we decided to buy more machines to reduce the queues but later on we decided to sell
that machine, which was not a correct decision.

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 Ravi Kumar (201518BT657)

Inventory (Raw materials)

Lead times-

As we can see that the lead times has increased due to the decision we made in
buying the machines and reorder point was not good.

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 Ravi Kumar (201518BT657)

Cash-

As we can see, the growth rate has decreased after we bought more machines and
decreased our capacity.

Description Amount($)
Starting Cash 1,000,000
Cash Sources .
Revenue 185,140
Interest 43,050
machine retirement 10,000
Cash Uses .
machine purchases 430,000
Inventory 657,000
Cash Balance 151,191

Conclusion-

Due to the wrong decision which we made in buying the machines and
reorder point, our factoryss growth rate and capacity was decreased, thereby
resulting in less Cash balance of 151,191$.

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