Question:

1. Explain learned concepts (in clear jotted point form) and how it would apply in a business context. from the case study below

Acme Biomed Case Study

Introduction

Acme BioPed is a manufacturer of custom orthotics, partnering with Chiropractors and Podiatrists to provide custom orthotics for a range of medical issues related to foot care. Located just north of a major urban center. The manufacturing plant is open from 8:00 to 4:30 - 5 days per week.

Process Overview

The manufacturing plant (lab) consists of 4 production lines with 10 staff per line.The first part of the process involves applying the logo to the top cover. Approximately 60% of orders require a personal top cover. The next step involves picking material for all orders, then the technicians' machine the base of the orthotic. From the technicians, the order is scanned into 1 of the production cells which produce the orthotic. Quality control inspects the product before shipping picks it up and processes the order for shipping.

Customer Information

The organization receives orders from over 2000 health care practitioners on a yearly basis. Each practitioner can have between 1 order to 100 per year. Approximately 500 to 600 orders are received daily through the customer service department. However, during peak orders can reach 1000 per day. Assumer there are 20 working days per month.

Since custom orthotics are covered via health plans, customers tend to order towards the end of their coverage year. So, the peak demand months are June and July, with the main push towards the end of the year. See the demand table below.

Month	Demand
January	9,820
February	9,980
March	10,100
April	10,235
May	10, 654
June	12, 894
July	11, 465
August	8,263
September	14, 682
October	16, 234
November	18, 756
December	17,549

Orders for custom orthotics are received via the Gaitscan system with an electronic scan of the customers foot, or via the mail with a box containing the foam imprint of the customer's foot. The customer service department processes the paper work and ensures that the order includes the necessary information need for the manufacturing processes. Acme BioPed ships daily to customers, health practitioners as the order is completed.

Supplier Information

Raw materials are shipped from two suppliers on a weekly basis based upon the forecasted demand. Once processed by receiving, the material handlers provides the inventory to the Material Picker in production.

Manufacturing Lab

The production steps are outlined below in the next sections.

Personal Top Cover

There are two production staff in this area that run 2 machines. The big machine can process 10 topcovers (5 human feet) at a time and takes 3 minutes to run while the small machine can process 6 topcovers (3 human feet) at a time and takes 2 minutes to run. The operators also performs the following tasks:

• Walks outside the printing room to pick up orders
• Puts orders on trolley inside the room
• Sorts the orders by date
• Carries the order in batches based upon the machine size e.g. large, small
• Preps the files on the computer
• Takes the completed top covers off the machine
• "marries the top covers to the baskets containing the orders
• Preps the machine for the new orders
• Presses button to run the machine
• Carries finished orders to cart

Materials Picker

Pulls cart from behind station picking area

Picks materials needed for each order and places in basket

The materials picker is interrupted often, with production staff asking questions about which material is in the basket or getting the correct material or getting additional material

Cycle time = 2 minutes 37 seconds

Scanner

The scanner scans the order into the technician area and sorts and organizes the orders for each technician. She places the orders (baskets) in roughly batches of 10 each per technician. Inventory at this point can be high as the orders wait for the technicians to machine.

Cycle time = 35 seconds

Technicians

There are 6 technicians that machine the base of the orthotic, 1 is male and 5 are female. 3 of the technicians are experienced and 2 are have moderate experience and 1 technician is brand new. Each technician walks to the trolley to pick up a batch of 10 to 12 baskets and then walks back to their work station. At each work station there are 3 types of machines (flat grinder used 20% of the time, grinder, finishing grinder) that are required to machine the base of the orthotic. The technicians, while they do the same thing don't follow the same process to complete their work. Some produce up to 100 per day while others are only producing 70 per day.

This operation has been deemed a bottleneck and used to be in the production line.It was moved to in front of production to achieve a smoother flow, however, the technicians are still producing approximately only 500 to 580 per day.

Key Tasks

• Walk to rack to pick up batch of 10
• Walk back to work station
• Sort baskets by type (diabetic,
• If diabetic or complex, uses the flat grinder to shape the shell
• For all shells, uses the grinder to shape the shell
• Fine tunes the edges of the shell on the finishing grinder
• Traces the shell on the production card, signs the card
• Put everything in the basket and sets aside
• Completes between 6 to 15 baskets
• Walks stack of baskets to scanner
• Scans the baskets into a particular cell. Each technician scans to a particular production cell. Some technician look to see which production cell is getting backed up and distributes accordingly.

Cycle time:

Production Cells

There are 9 operators per line and 4 production lines. The table below outlines the # of operators, batch size and observed cycle times.

Position	# of operators	Batch Size	Observed Cycle Time
Corrections	1	1	30 to 45 seconds per basket
Posting	1	10 to 15	3 to 4 minutes
Gluing	1		1 minutes 40 seconds
Adds & Mods	2	6	3 to 5 minutes
Finishing	3	1
Quality Control	1	1	2 minutes 37 seconds

Corrections

This position is typically performed by a male because of the upper body strength required to apply the shell to the flat grinder. Taking only 30 to 45 seconds per basket, this position gets trays from the Finishing when he runs out and also helps gluing. He sorts the baskets as they are received from the technicians by extrinsic and intrinsic.

Posting

This position requires applying a rear-foot post on extrinsic shells. Roughly the split between extrinsic and intrinsic is 60%/40%. The poster prepares materials in batches of 30 to 50, by applying glue to the black posting material. Once dry this material is stacked in piles. Posting Operator takes approximately 10 to 15 baskets, reads the production card and applies glue to the shell, and once dry enough applies the black posting material, puts in a toaster oven, waits for it to complete, presses the shell on a pneumonic press, then cuts around the excess posing material by cutting around the shell.

Gluing

Reads the production card. Applies glue to all of the materials in preparation for Adds and Mods.

Adds & Mods

Reads the production card. Glues and applies the different adds and mods that are required. Sometimes depending upon the complexity, must wait for glue to dry, so starts processing the next basket. Works in batches of 5 to 6. Once complete pushes the shells on the tray through the large oven on a automatic conveyor.Time through the oven is just over 1 minute

Finishing

The 1^st operator "catches" the tray, takes the pieces off the tray and applies the material to the shell by pressing and smoothing. Measures the shell against a template and the trace on the production card that was done by the technician. She cuts around the shell using scissors and puts everything into the basket for the next operator.Inventory can sometimes back up here with trays staying in the oven as the "catcher" is not working to the speed of the oven.

The next 2 operators read the production card and finish the shells by using a fine grinder along the edges to smooth out the edges. They put the basket on the QC trolley next to them. Cycle time is approximately 2 minutes 10 seconds.

Quality Control

QC operator takes the basket and scans the code to print the UPC label. She cleans the orthotic from all the production dust using a cleaner and a rubber to remove left over/excess glue. She applies the UPC label, puts the orthotics in a plastic bag, along with promotional material and scans the label into shipping. The basket is placed on the shipping trolley for the shipper to come and pick up.