Question: Oasis Pty . Ltd . just got a new contract to produce 2 8 0 units per week of each of three items A ,

Oasis Pty. Ltd. just got a new contract to produce 280 units per week of each of three items A,B and C. Oasis has five machining centres (milling, turning, bending, drawing and painting centres). The batch set-uptime (in hours) and unit processing time (in minutes) for each of the new items to be produced at each of the centres is given in Table 1. The current utilisation of the work centres before the new contract was secured is shown in Table 2.This utilisation is calculated based on the effective (available)capacity and not the design(installed) capacity. Each machine centre works 24 hours a day, 6 days a week. Assembly is done manually. Each worker works 8 hours each day. Assembly workers work 5 days a week. The unit assembly time (in minutes) for each of the items is also given on Table1. Labour efficiency is 0.85. Oasis has to hire new assembly workers for the new order they just got. Labour is very scalable and hence, is hardly considered as a constraint. If Oasis runs short of capacity, they will choose to continue producing all the old orders and seek to maximise the total number of items(A, B and C) produced from the new order because they make the same profit from every unit of A,B or C produced and any unit of A, B or C not produced in house can be subcontracted to vendors if necessary. Based on principles of the Theory of Constraints: (a)Determine the design and effective capacities for the machines.
(b) Using the pre-contract utilisation, determine the load that exists on each machine centre before the new contract was secured. (c) Determine the load from the new order and the total load on the work centres, including the load from the new order. d) Identify the most critical machining centre. e) Given management policy when constrained by capacity, which of the items would be subcontracted and what quantity would it be? f) How many new assembly workers would Oasis need to hire, given that the workers cannot be cross-trained?
Table 1: Set Up and Processing Times for Products A, B, and C
Table 2: Existing Load on Work Centers
Oasis Pty . Ltd . just got a new contract to

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