A manager wants to determine the number of containers to use for incoming parts

Question

A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 73 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of 18. Each container holds 43 pieces and it takes an average of 60 minutes to complete a cycle How many containers should be used? (Round up your answer to the next whole number.) Number of containers As the system improves, will more or fewer containers be required? O More Fewer

Explanation / Answer

Process cycle time = 1 hour ( i.e. 60 minutes )

Since , usage rate of the process = 73 pieces / hour

Net numbers to be maintained in the Kanban system = 73 pieces

However , it is given that inefficiency factor = 0.18

Therefore , Gross number of items to be maintained in Kanban system

= 73 / ( 1 – inefficiency factor )

= 73 / ( 1 – 0.18 )

= 73/0.82

= 89.02

Capacity of each container = 43 pieces

Therefore , number of containers to be used = 89.02/43 = 2.07 ( 3 rounded to next higher whole number )

NUMBER OF CONTAINERS = 3

As the system improves, inefficiency factor reduces . With reduction in inefficiency factor , Gross number of items to be maintained in Kanban reduces.

With reduction in number of items, number of containers required will also reduce.

AS THE SYSTEM IMPROVES, FEWER CONTAINERS WILL BE REQUIRED

NUMBER OF CONTAINERS = 3

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