Assignment #$3$

Complete the following questions found below either in WORD or in a WRITTEN format. Show all your calculations and use the format used to solve the In Class Examples.

Format matters in the calculations, deviation from the format highlighted in the class examples will result in a reduction of marks.

Determine the bottleneck $($Define it in the comment column$)$ and calculate the Hourly Capacity and Balance Delay at each of the operations. Put your answers in the following chart. Assume that the Net Available Time is equal to $400$ min $.$

Operation Manpower

Cycle Time $($Seconds$)$

Hourly Capacity

Balance Delay Time

Comments $101520163017401105018$

Based on the information on the above chart and assuming each operation is tied together with the other one, what would be the Direct Labour cost of the process based on the standard hour? Assume the labour cost is $$18$ per hour. $($Hint: Use the theory of "Bottleneck" operations and "Standard Hours"$)$ If you were to decouple this process at$,$ what location would you do it$?$ Why?

Page $1$

Assignment #$3$

Magna International has the following process flow for the manufacturing of one of

their products. The plant runs $3,8$ hours shifts, $5$ days per week, $240$ days per year.

The annual demand is $400,000$ units with a $20\%$ cushion required and a $2\%$ scrap

expected $(98\%$ yield$).$ The available time consists of total losses of $80$ minutes per

shift $($includes contractual and downtime$)$ with the predicable downtime being $60$

minutes per shift $($just breaks and lunches$)$ of the total losses.

Answer the following questions:

a$.$ Calculate the modified volume requirements which include the production

losses and customer requirements.

b$.$ What is the TAKT Time $($based on the modified volume$)$

c$.$ What is the effective hourly capacity based on the Takt Time?

d$.$ What is the bottleneck operation of this process?

e$.$ What is the HOURLY effective capacity of this process?

f$.$ What is the weekly capacity if Magna works $3,8-$hour shifts, $5$ days er week,

based on the effective capacity? How does this compare to the contract

requirements?

g$.$ If the output of the line averages $6,200$ assemblies per week, calculate the

production efficiency.

h$.$ If the bottleneck is broken with the addition of an identical piece of

equipment, what is the new bottleneck operation?

i$.$ What is the new Effective Capacity of this process? Will it meet the

contractual demand requirements? Explain?

j$.$ What is the standard hour for this process using the new process rate if $5$

operators are directly assigned to this process.

k$.$ Using the new rate of the process, what is the Direct Labour cost if all are

being paid at $$25$ per hour.