Prof. Mellie PullmanOnline Registration & Game Overview

ISQA 511

Getting on to the game, come prepared with a credit card, your

team name and password (details on their format in next slides)

http://lab.responsive.net/lt/pdx/start.html

Obtaining Your Access Code

Click here

Create A New Account

Click here

Follow step–by–step instructionsto purchase your access code

Entering Your Course Code

Enter course code

cash

Registering Your Team

Enter team name * All lower case letters or numbers * No punctuation or spaces

example

Registering Your Team

Enter team password * All lower case letters or numbers * No punctuation or spaces

example

Enter student’s names * Caps and spaces are OK * Please NO apostrophes!

Hannah LiskerCharlie WongShane O’Brien

Hannah LiskerCharlie WongShane OBrien

Enter student access codes

akjndk8lslhfg7wkhkjft96l

A Brief Overview

Your Laboratory:Four steps at three stations

1) Sample Preparing– Step 1 blood is transferred

to test tubes in the test kit

2) Testing– Steps 2 & 4 samples are

tested and information is recorded

3) Centrifuging– Step 3 plasma and blood

cells are isolated

Capacity Costs

• Station #1SAMPLE PREPARING MACHINES

– $90,000 each• Station #2

TESTING MACHINES

– $80,000 each• Station #3

CENTRIFUGING MACHINES

– $100,000 each• Resale value for any machine

– $10,000 each

Factory Process

• Every step has its own process time

• Littlefield measures average daily utilization rates at each station

• Queues hold waiting jobs

• The Lab holds a maximum WIP of 100 orders

lead time = process time + wait time

Orders and Kits

• Every arriving customer order is matched with a new test kit– test kits cost $600 each– shipments have a fixed ordering cost = $1,000 – supplier’s lead time is always 4 days

• Three criteria to place an order:1) Inventory on-hand is lower than the reorder

point2) There are no shipments of materials in transit3) Cash on hand is sufficient for the order quantity

Reorder Point

– Stocks are replenished when they reach some pre-determined “low point”.

• A system commonly used by squirrels• Well, also by you, your checkbook vendor, and many

other systems.– You start with 160 kits in stock– Your reorder point ROP is set at 40 kits– The order quantity Q is set at 120– You can change both ROP and Q – See your inventory chapter for helpful ideas.

Contract Pricing

< 24 hours = $1000 > 72 hours = zero

* Factory must still purchase inventory for orders earning zero revenue !

Contract Pricing

Three contracts to choose from1) quoted lead time = 7 days,

max lead time = 14 days, price = $750

2) quoted lead time = 1 day, max lead time = 3 days, price = $1000 (pictured here)

3) quoted lead time = 12 hours, max lead time = 24 hours, price = $1250

An example using Contract 2 ≤ 24 hours = $1000 ≥ 72 hours = zero* Factory must still purchase inventory for orders earning zero revenue !

Logging Into Your Laboratory after the simulator has been initialized

Today

http://lab.responsive.net/lt/pdx/entry.html

example

Enter team name

Logging Into Your Laboratory

Enter team’s password

example

Logging Into Your Laboratory

Explore Your Laboratory

Click Box: Customer Order Queue

Click “Plot Job Arrivals” and Download Data

• Click download button

• Save to desktop

• Open with MS Excel or another spreadsheet application

• Copy > Paste data columns to a master worksheet

• Index by Day

Opening the data in Excel

• You will have 50 days worth of data until it starts running dynamically on Feb. 3

• The demand will increase until around day 150 and then level off

• Figure out the demand point where it levels off

daynumber of jobsarriving each day

1 2

2 2

3 1

4 0

5 2

6 1

7 0

8 2

9 2

10 3

11 1

… …

48 6

49 9

50 6

Forecasting Demand (arrival rate of jobs)

• Overall Linear trend• = SLOPE(known_y's,known_x's)• = INTERCEPT(known_y's,known_x's) • Forecast for the demand at the point where

you think it will level out.

Look at Capacity Problems(station 1 Queue Box)

Click on Station 1 to see Utilization

Might want to see what happened

Click on Materials Buffer Box to see your inventory policy & status

As demand goes up, What could happen here?What can you do?

Completed Job data

Current Job Lead Time through system & contract information

Expected Utilization =

Key Hints

• Forecasts estimate future outcomes• They are not known for precision• A prediction interval should be considered

Arrival Rate * Process Time # of Machines

Key Hints• Balance your work stations, reduce bottleneck• Proactive are better than reactive strategies• Monitor your inventory and change ROP and

Quantity if you need to. It takes 4 days for part orders to arrive from your supplier so make sure not to run out during lead time.

• Watch your completed job lead time/revenue to take most profitable contract when possible

Deliverable• No more than 2 written pages (then appendices)

which cover your teams experience• What did you do (in sequence)?• Why did you make that decision? • How did it work out?• What did you learn during the process?• Include an Appendix with a “journal” and any

relevant calculations.