Question: Problem 3 An average of 20 new orders are started through a certain factory each month. On average, an order consists of 50 parts to

 Problem 3 An average of 20 new orders are started through

Problem 3 An average of 20 new orders are started through a certain factory each month. On average, an order consists of 50 parts to be processed through 10 machines in the factory. The operation time per machine for each part =15min. The non-operation time per order at each machine averages 8hr, and the required setup time per order =4hr. There are 25 machines in the factory, 80% of which are operational at any time (the other 20% are in repair or maintenance). The plant operates 160 hr/ month. However, the plant manager complains that a total of 100 overtime machine-hours must be authorised each month to keep up with the production schedule. (a) What is the manufacturing lead time for an average order? (b) What is the plant capacity (monthly) and why must the overtime be authorised? (c) What is the utilization of the plant according to the definition in the text? (d) Determine the average level of work-in-process (number of parts-in-process) in the plant

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