II. Process Analysis (25 points): Answer ANY 25 points of questions, preferably all either from II.A or II.B.

II.A. Leather Bags Production Line: There are three steps to making a leather bag: cutting, sewing, and packaging. A cutting station is automatic and one worker can take care of the job. On average, the cutting machine cuts five layers of leathers in 3 minutes (this includes setup times). Each layer of leather makes parts for 1 bag. At 7:00 a.m., the machine starts cutting. The sewing station is a labor-intensive step - there are 8 workers. On average, it takes 12 minutes for one worker to sew one bag. However, sewing will not start until 10:00 a.m. For the packaging step there are two workers. Each worker can pack a bag in 1.5 minutes. Since this is the last step of the process, the worker wont start the work until 12:00 p.m. Each worker can only work a maximum of 8 hours in a day (there is only one shift at each step, ignore break times). The current demand for bags is 400 bags/day. They start the day with no inventory, and must finish the days work with no remaining inventory.

1. (5 points) Draw a process flow diagram indicating process steps and permissible inventory buffers.

2. (5 points) What is the bottleneck for the current setup? What is the factory capacity? Bottleneck: ___________________ Factory Capacity: ___________________ bags/day

3. (*10 points) What is the maximum WIP between cutting and sewing? What is the maximum WIP between sewing and packaging? (WIP=Work In Process Inventory) Maximum WIP between cutting and sewing: ____________________ bags Maximum WIP between sewing and packaging: _______________________ bags

4. (10 points) What time does cutting finish (AM/PM)? What time does sewing finish? What time does packaging finish? Finish Time: Cutting _______________ Sewing ________________ Packaging ________________

5. (5 points) Would you change (increase / decrease) the batch-size at the cutting step? Why or why not? 6. (*10 points) After some consultants examine the current process they think that if all workers start at 7:00 a.m. the WIP can be reduced and all workers need to working for fewer hours. What will be the change in total WIP? (If you prefer, you can stipulate the change in labor hours instead of WIP.) Circle one: INCREASE DECREASE NO CHANGE

Reason: __________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________