You manage the production process in the high-tech facility of Dale Computers In
ID: 2580623 • Letter: Y
Question
You manage the production process in the high-tech facility of Dale Computers Inc. The facility consists of three different assembly lines (1, 2, 3) making two different products, X and Y. Assembly Line 2 is dedicated to the assembly of product X, and assembly line 3 is dedicated to product Y. Assembly Line 1 can assemble both the products. The production process begins with the procurement of raw materials from suppliers. Next, the raw materials are processed into six independent subassemblies, A–F, in separate work areas within the facility. Each product is then assembled from these subassemblies in one of the assembly lines. Product X involves the assembly of subassemblies A, B, C, and E. Product Y requires that subassemblies B, C, D, E, and F be assembled. Subsequent to assembly, each product is finished, customized (painted and other options added), packaged and shipped. Current trends indicate that 20% of product X and 50% of product Y are customized.
Following are the capacities of the work areas producing the subassemblies:
Subassembly Type
Capacity (Units/Week)
A
2500
B
2400
C
2400
D
2250
E
3400
F
1200
The annual demands for the products are as shown below:
Product
Sub-assemblies required for one unit of product
Annual Unit Sales
X
2 of A; 1 of B, C, E
52,000
Y
1 of B, C, F; 2 of D, E
52,000
The capacities of the assembly lines and the finishing, packaging and customizing areas are as given below:
Assembly line 1 1200 units/week Finishing 2500 units/week
Assembly line 2 500 units/week Customizing 850 units/week
Assembly line 3 600 units/week Packaging 3000 units/week
Notes: (1) Assume 52 operating weeks/year.
(2) Plan production to meet the demand (do not overproduce).
What is the current bottleneck in the system? Identify the top three areas that are candidates for becoming a bottleneck area of this system as demand increases (assume proportionately). Show your calculations.
Subassembly Type
Capacity (Units/Week)
A
2500
B
2400
C
2400
D
2250
E
3400
F
1200
Explanation / Answer
Solution:-
With the current demand there may not be any bottleneck but there is certainly areas that willbecome one quickly. The first area of concern would be sub assembly D with 89% of the capacity being used. If demand increased equally by 13% sub assembly D would be at full capacity. If Subassembly D capacity can be improved the next three areas of concern, in order would be subassembly E, following very closely to D, then the Assembly lines, followed by the rest of the subassembly areas (B,C, F) and then customization.
If demand does not grow evenly the bottleneck and constraints may change and need to be re-evaluated for optimization of the system as a whole.
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