Single model and stage a is already set up.

Stage A produces 20 cars/hour. Stage B produces 20/cars. Stage C produces 18/hour

 How many cars can be produced by the system in an 8-hour shift? How much idle time is there in this stage during such a shift? Which stage will you add capacity to? And by how much? Why?

Without buffers, downtime at a stage affects the other stages immediately. This affects system output.

Assume a cost of $5,000/unit of storage capacity.

For example, a buffer to hold five semi-finished cars would cost $25,000.

Car A: 20 min. setup down to 10 min. Assume a cost of $10,000

Car B: 30 min. downtime down to 15 min.Assume a cost of $20,000

Would you reduce the setup time? If so which stages would you reduce the setup time? How much would this add to system capacity? Which is a better option and why?

What if we can do both (i.e., add buffers and reduce setups)? What is the increase to system capacity and at what cost?

If you now consider all three options (the first two and the combined option), what is the best solution here?

Part B

Model X Y and Z

Consider an 8-hour shift per day and 6-day per week operation.

Determine the batch sequence for the three models that will be processed through the week.

What happens to Part B analysis if you have a fourth model, Model W, in the mix? How would your solution change to incorporate this additional model?