1. Case Study – “Don’t bother me, I can’t cope it”
Case Study Don’t Bother Me, I can’t Cope
Submission Date 3-Nov-2009
Class EPGP– 09-10
Subject SOM
Instructor Prof. N. Ravichandran
Prof. Rohit Kapoor
Submitted by
Rajendra Inani
Table of contents
Summary of Analysis and Results...................................................................................................2
Line A – Existing Production 315 Units / Day................................................................................4
Line A –Desired Production 420 Units/ Day...................................................................................5
Line B –Existing Production 140 Units/ Day..................................................................................6
Line B –Desired Production 210 Units/ Day...................................................................................6
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2. Case Study – “Don’t bother me, I can’t cope it”
Summary of Analysis and Results
On analysis of the given case, as described in subsequent sections following is the
recommendations.
Line A: Solution 1 is suitable, if this order has to be continued for more than 91 working
days.
# Units Per Unit Per Day Regular # of Regular Over Wages / Contribution
Produced Contribution Contribution wages worker hours Time Day + / Day /
/ Day (Rs) (Rs) (Rs) s Hours OverTime Worker
420 30 12600 18 9 8 0 1296 1256
(Desired)
420 30 12600 18 7 8 2 1428 1596
(Desired)
315 (Old) 30 9450 18 7 8 0 1008 1206
Solution 1: This recommendation requires hiring two additional resources, which involves Rs.
12000 training cost and per day wages is Rs. 1296.
Solution 2: This solution has continuing with 7 workers with 2 hours of overtime each day. The
differential wage per day including overtime is Rs. 132 in this case. (12000 / 132 = 90.90)
Line B: Solution 1 is suitable
# Units Per Unit Per Day Regular # of Regular Over Wages / Contribution
Produced Contribution Contribution wages worker hours Time Day + OT / Day /
/ Day (Rs) (Rs) (Rs) s Hours +Rejection Worker
Expenses
210 30 6300 18 3 8 1 529.2 1923.6
(Desired)
210 30 6300 18 4 8 0 576 1431
(Desired)
140 (Old) 30 4200 18 2 8 0 288 1956
Solution 1: This recommendation requires hiring one additional resource, which involves Rs.
6000 training cost. In this case, the Efficiency of operation is maintained at 100%, but involved
overtime for 1 worker for 1 hour. (Actually making 16 extra unit consuming 36 minutes on 3rd
workbench), considering wages of Overtime and 1% rejection due to fatigue.
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3. Case Study – “Don’t bother me, I can’t cope it”
Solution 2: This recommendation requires hiring two additional resource, which involves Rs.
12000 training cost. But wages exceeds to Rs. 576, more than solution 1.
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4. Case Study – “Don’t bother me, I can’t cope it”
Line A – Existing Production 315 Units / Day
Activity Activity Time (Sec) Immediate Predecessor
1 30 None
2 50 None
3 40 1
4 50 1
5 20 2
6 10 3
7 10 4,5
8 20 2
9 10 6
10 40 9
11 20 7
12 30 7
13 50 9
14 50 10
15 10 11
16 40 8,12
Total Lead Time 480
Cycle Time for 315 Units / Day = 420 Mins / 315 Units = 1.33 Minutes/ Unit = 80 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 6 Work Stations
Presently, Mr. Sane is using 7 workstations against the needed 6 work Stations as following.
W/S Activities Time (Seconds) Time (Minutes) Idle Time (Minutes)
1 1,3 70 1.166667 0.163333
2 2,5 70 1.166667 0.163333
3 4,8 70 1.166667 0.163333
4 6,9,13 70 1.166667 0.163333
5 7,10,11 70 1.166667 0.163333
6 14,15 60 1 0.33
7 12,16 70 1.166667 0.163333
Available Time (Minutes) = 7 W/S x Cycle Time 1.33 Mins = 9.31
Idle time 1.31
Efficiency % = 8 Mins / 9.31 Mins = 85.93
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5. Case Study – “Don’t bother me, I can’t cope it”
Line A –Desired Production 420 Units/ Day
Cycle Time for 420 Units / Day = 420 Mins / 420 Units = 1 Minutes/ Unit = 60 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 8 Work Stations
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 2 50 504
2 1,5 50 504
3 3,8 60 420
4 4,6,7 70 360
5 9,13 60 420
6 10,11 60 420
7 14,15 60 420
8 12,16 70 360
With the given nature of certain tasks, we cannot group them in a way that each Work Station can have
less or equal to 60 Seconds (Cycle Time) of tasks. Thus, Work Stations 4 and 8 would have Bottleneck
capacity of 360 Units / Day, which is less then desired 420 Units/ Day.
With Work Stations = 9, following organization would be suitable.
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 1 30 504
2 2 50 504
3 3,5 60 420
4 4,6 60 360
5 10 40 420
6 7,11,12 60 420
7 9,13 60 420
8 14,15 60 360
9 8,16 60
Available Time (Minutes) = 9 W/S x 420 Mins each day 3780
Utilized time = Lead time 8 Mins x Units Producted 420 Units 3360
Efficiency % = Utilized Time / Available Time 88.89
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6. Case Study – “Don’t bother me, I can’t cope it”
Line B –Existing Production 140 Units/ Day
Activity Activity Time (Sec) Immediate Predecessor
a 40 None
b 50 None
c 70 a
d 20 a
e 50 a
f 40 b,c
g 60 e
h 30 d,f,g
Lead Time 360 6 Minutes
W/S Activities Time (Seconds) Maximum Production Capacity
(# of Units / day)
1 a,b,c,d 180 140
2 e,f,g,h 180 140
Available Time (Minutes) = 2 W/S x 420 Mins each day 840
Utilized time = Lead time 6 Mins x Units Producted 140 Units 840
Efficiency % = Utilized Time / Available Time 100.00
Line B –Desired Production 210 Units/ Day
Cycle Time for 210 Units / Day = 420 Mins / 210 Units = 2 Minutes/ Unit = 120 Seconds / Unit
Nos of Work Station required = Lead Time x Prod Units / Available Time = 3 Work Stations
W/S Activities Time (Seconds) Maximum Production Production Capacity with 1 Hour Overtime
Capacity (# of Units / day)
1 a,b, d 110 229 262 (Not used)
2 c,e 120 210 240 (Not used)
3 f,g,h 130 194 222 (Used for extra 16 Units only – 36 Minutes)
Available Time (Minutes) = 3 W/S x 420 Mins each day 1260
Utilized time = Lead time 6 Mins x Units Producted 210 Units 1260
Efficiency % = Utilized Time / Available Time 100.00
************End of assignment *****************
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