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Case: Designing Toshiba’s Notebook Computer Assembly Line

Production of the subnotebook was scheduled to begin in 10 days, with initial production was at 150
units per day, increasing to 250 units per day, and eventually 300 units per day.

Assumptions:

Assembly lines staffed by 10 operators at a 14.4 meter long. Maximum operator is 12.
Operating hour 7.5 hours.
1 notebook = 2’, 10 operators.
From exhibit 6A.18 we know that there are 10 stations.
Sum of Task Times (T) = 1258”
Cycle Time = 2 minutes = 120”

Station Task Time Opn. # Time (Sec)

1 100
1 110 2 6
3 4
4 50
5 13
6 16
2 114
7 13
8 16
9 6
10 26
11 10
12 13
13 23
3 101
14 6
15 6
16 13
17 4
18 15
19 11
20 8
21 8
22 8
4 107 23 13
24 6
25 13
26 8
27 13
28 4
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29 6
30 13
31 6
32 8
33 11
5 103 34 6
35 11
36 10
37 10
38 16
39 6
40 13
41 6
42 6
43 5
6 107 44 23
45 18
46 18
47 8
48 10
49 18
50 10
51 11
7 108 52 8
53 33
54 22
55 6
56 58
57 8
58 8
8 93
59 8
60 6
61 5
62 31 Assumed that opn. # 63 can produce 3 units
9 310 63 208 at the same time in parallel. But this opn. Still
64 71 have to wait unit from station 8 and so on, so
the bottleneck is in station 2, which is the
65 5
longest station takes 114”
66 75
10 105
67 10
68 15
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a) Daily Capacity
1 day operation = 7.5 hours = 27000”
(T) = 1258”
Bottleneck is in Station 2 = 114”
Daily Capacity = 27000 = 236 units / day
114

b) Efficiency of the line at the maximum capacity

Efficiency = Sum of Task Times (T)

Number of Workstations (Nt) X Cycle Time (C)

= 1258 = 1.103 = 110 %

10 X 114

c) Redesigned to Operate 300 units / day

Cycle Time = 27000 = 90
300
Assumption: In opn.# 63 station 9 the hardware test is performed in parallel on three different units.
But this opn. Can not divide three because the process is not held at the same time. Therefore;

Nt = 1258 = 13.9 or 14 workstations

90
Adding 4 workstations means adding 4 more operators. Therefore need to be added 1 operator each,
except Station 11 because the longest task is loading the software already done by the hardware test. In
other words, operator only add in Station 1, Station 12, and 13 at Station 14. So, without overtime use,
to fulfill 300 units / day need to add 4 workstations and 4 operators.

Efficiency = 1258 = 0.998 = 99.8%

14 X 90
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Make Balance the Line using Cycle Time 90”

Remaining
Number of
Task Sum of Task Unassigned
Operator
Station Opn. # Time Time Time
1 50
2 3
1 80 10 2
3 2
4 25
5 13
6 16
7 13
2 90 - 1
8 16
9 6
10 26
11 10
12 13
13 23
14 6
3 15 6 90 - 1
16 13
17 4
18 15
19 11
20 8
21 8
22 8
23 13
24 6
4 81 9 1
25 13
26 8
27 13
28 4
29 6
30 13
31 6
32 8
33 11
5 75 15 1
34 6
35 11
36 10
37 10
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Remaining
Task Sum of Task Number of
Station Opn. # Unassigned
Time Time Operator
Time
38 16
39 6
40 13
6 41 6 75 15 1
42 6
43 5
44 23
45 18
46 18
47 8
7 82 8 1
48 10
49 18
50 10
51 11
52 8
8 53 33 80 10 1
54 22
55 6
56 58
57 8
9 58 8 88 2 1
59 8
60 6
61 5
10 36 54 1
62 31
11 63 208 208 automatic
64 71
12 76 14 1
65 5
66 75
13 85 5 1
67 10
14 68 15 15 65 1
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Issues to be Considered

If Toshihiro using this new assembly line, issues that need to be consider are:
1. cost for adding 4 workstations
2. Cost for adding 4 operators
3. Assembly line layout

Assuming that the production and sales reach 300/day with selling price for $100 each, then the
company will get revenue $30.000/day. 14 operators are working everyday for 7.5 hours without
overtime use. Assuming each operator salary is $5/hour, and then the company has to pay $37.5 to
each operator per day, or $525 for 14 operators. The company will get $29.475/day. But this is not
including another operating expense, cost of goods sold and another expense.

The comparison between design new assembly line with adding more stations and operators should
be compared with using same assembly line without adding stations and operators but using
overtime. To produce 300 unit/day with old assembly line which consists of 10 stations that can fit
for until 12 operators, it takes for 11 operators and overtime for 2.5 hours. Assuming that overtime
payment is $3/hour, then:

11 operator/day $37.5 x 11 $412.5

Overtime payment $3 x 2.5 x 11 $82.5
$495
It will be cheaper for the company to use overtime with 11 operators than to design new assembly
line, adding more stations and hire more operators.

The assembly line layout also needs to be considered. The assembly line consisted of a 14.4 meter
conveyor belt and separated at 1.2 meter intervals for 10 workstations. If the company design new
assembly line with 14 workstations but still with the same length of conveyor, then the interval is
shorter than before, about 1 meter for 14 workstations. Position of the operators also needs to be
considered, because if the operators don’t feel comfortable then they can’t work well. Especially in
station 1 because there are 2 operators working there.