Jones Manufacturing Company
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Transcript of Jones Manufacturing Company
Jones Manufacturing Company
Aicha Thiam, Daniel Pugh, Nathan Palmer, Jamie Munger, and Douglas Ashburn
MBA 513
Table 1: Hours to complete 20,000 unit order Lot size =
2000
Moving Time Working Time Total Target
Lead Time272 hrs(16hrs * 17process)
283 hrs 20mns(16 hrs 40mns * 17 process)
555 hrs 20mns
Cycle Time(balanced line)
16hrs 40mns150 hrs(16 hrs 40mns * 9 lots)
Complete Order 705 hrs 20mns 200 hours
Solution A
Table 2: Hours to complete 20,000 unit orderProblem: Lead Time
Solution A: Reduce lot size to 200
Moving Time Working Time Total Target
Lead Time221 hours(13hrs * 17process)
28 hrs 20mns(1hr 40mns * 17 process)
249 hrs 20mns
Cycle Time (balanced line)
1hr 40mns165 hours(1hr 40mns * 99 lots)
Complete Order 414hrs 20mns 200 hours
• Reduce lot size…. Changes the cycle time but not enough• The problem is with the “informational downtime” involved
with moving the parts: work orders, scheduling, etc…
• Introduce a “load- and go-” system
Table 3: Hours to complete 20,000 unit orderProblem: Lead Time and Moving Time
Solution B: Reduce lot size to 200 & Switch- and go- system
Moving Time Working Time Total Target
Lead Time5 hrs 40mns(20mns * 17process)
28 hrs 20mns(1hr 40mns * 17 process)
34 hrs
Cycle Time(balanced line)
1hr 40mns 165 hrs(1hr 40mns * 99 lots)
Complete Order 199 hrs 200 hours
Solution B
• Same chaotic movement of the forklifts around the factory• Solution:
– Create an “assembly-line” setup in the unused space
Table 4: Cost/Savings of Revised Factory Layout from Forklifts to Conveyors
Capital Investment Savings/ month Payback Period
Move 48 Machines $144,000
Install Gravity Conveyor $19,040
Eliminate Forklifts and Drivers $26,720
Totals: $163,040 $26,720 6 months
Assume: 33.33% increase of factory capacity
• Pros:– Increase to capacity does not require more forklifts/drivers
– Cost per bracket would be reduced
• Cons:– Time to establish new system may exceed time allotted
– Reduced flexibility for the Small Parts Manufacturing Facility
• Final decision is strategic.