Juice Production Line

Collect or use the collected data to answer the following questions.

 

You are the management of a juice production line. The production line consists of a number of different operations. Your job is to select the best line configuration based on efficiency, utilization, and profit per bottle produced. Assume that the all you call sell all product produced.

 

The capacity is determined by the number of (6 sided) die available to an operation, as indicated in Table 1 (e.g., if the operation has 2 die, then the maximum capacity is 12 – the highest roll that can be achieved with 2 die). Data should be collected on the production line configurations in Table 1, using 1 year (262 days) of production, and starting with 0 units of inventory.

 

Table 1: Line configurations

 

Process Step Line 1 Capacity Line 2 Capacity Line 3 Capacity Line 4 Capacity Line 5 Capacity Line 6 Capacity Line 7 Capacity
Operation 1 1 1 2 2 2 1 1 (12 sided)
Operation 2 1 2 2 2 2 1 1 (12 sided)
Operation 3 1 2 2 2 2 1 1 (12 sided)
Operation 4 1 2 1 2 2 1 1 (12 sided)
Operation 5 1 2 2 2 2 1 1 (12 sided)
Operation 6 1 2 2 1 2 1 1 (12 sided)
Operation 7           1  
Operation 8           1  
Operation 9           1  

 

Table 2: Basic cost information used to calculate costs and revenue

 

Revenue per bottle sold $5.00
Fixed cost per 6 sided die per year $100.00
Variable production cost per bottle $0.10
Fixed cost per 12 sided die per year $200.00
Variable production cost per bottle $0.05
WIP – Holding cost per day $0.07
RMC – Raw material cost per bottle $0.50

 

Part 1: Complete the following table with data from the simulation

 

Table 3: Values collected from the simulation

 

Line Operation with highest ave. daily inventory (e.g. op#&value) Operation with highest ave. daily production (e.g op#&value) Ave. 15 run line throughput (actual output/day) Ave. 15 run line Inventory Ave. 15 run line fixed costs Ave. 15 run line variable  costs Ave, 15 run line revenues Ave. 15 run line profits (profits/year)
1                
2                
3                
4                
5                
6                
7                

 

Part 2: Calculate or identify the values from the simulation and data in the previous tables

 

Table 4: Values calculated

 

Line Maximum output* Expected output* Utilization Efficiency Calculate the profit per bottle $
(Show Calculation)**
1          
2          
3          
4          
5          
6          
7          

 

* The simulation gives you the actual output. The maximum output and expected output are determined directly from the line configurations in Table 1. Hint find the bottleneck (e.g. if the bottleneck has 1 die then the Maximum output is 6 and the Expected output is 3.5)

** Use Costs in Table 2 and values collected from the simulation in Table 3 to calculate.

 

Part 3: Answer the questions below

 

How close was the actual output to the expected output for each line?

Line Actual output Expected output
1    
2    
3    
4    
5    
6    
7    

Comment on why there might there be a difference?

 

 

 

 

 

We have talked about utilization in class. How would you define utilization for these production lines – Give me a definition using the terminology from this assignment (not a generic definition)?

 

 

 

 

 

 

We have talked about efficiency in class. How would you define efficiency for these production lines – Give me a definition using the terminology from this assignment (not a generic definition)?

 

 

 

 

 

 

How would you increase the efficiency of your manufacturing line?

 

 

 

 

 

Compare lines 2, 3, and 4. Which line would you consider best and what rationale do you have for this conclusion (use data in tables above to support and the blank table below to summarize)?

 

  Metric 1 Metric 2 Metric 3 Metric 4 Metric 5 Metric 6 Metric 7
Line e.g., output            
2              
3              
4              

 

 

 

 

 

 

 

Conclusion from Comparison:

 

Compare lines 1 and 6. Which line would you consider best and what rationale do you have for this conclusion (use data in tables above to support and the blank table below to summarize)?

 

  Metric 1 Metric 2 Metric 3 Metric 4 Metric 5 Metric 6 Metric 7
Line e.g., output            
1              
6              

 

 

 

 

 

 

Conclusion from Comparison:

 

 

Compare lines 1, 5, and 7. Which line would you consider best and what rationale do you have for this conclusion (use data in tables above to support and the blank table below to summarize)?

 

  Metric 1 Metric 2 Metric 3 Metric 4 Metric 5 Metric 6 Metric 7
Line e.g., output            
1              
5              
7              

 

 

 

 

 

 

 

Conclusion from Comparison:

 

From what you have observed (without using the simulation to verify), compare the following line configurations. Which line would you consider best and what rationale do you have for this conclusion?

 

Process Step Line 1 Capacity Line 2 Capacity Line 3 Capacity
Operation 1 3 2 2
Operation 2 3 3 3
Operation 3 3 3 3
Operation 4 2 3 3
Operation 5 3 3 3
Operation 6   3  

Comparison:

 

 

 

 

 

 

 

 

 

 

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