Hosuki, a small car maker, competes with larger manufacturers by building cars t

Question

Hosuki, a small car maker, competes with larger manufacturers by building cars to order. The company has invested heavily in technology and close partnerships with suppliers. Customers enter their orders and choose their options on the company website. Hosuki's ERP system responds with an estimated cost and completion date. After the customer approves the order, Hosuki sets to work.

Quick response for Hosuki is dependent on collaborative manufacturing with its trading partners. A virtual bill of material for a typical car appears below. Notice each item is color-coded to its supplier and indented beneath its parent assembly. Hosuki has full visibility into its suppliers' ERP systems to check on-hand quantities and order progress. These data are essential in quoting accurate due dates. Most of the car's components are purchased. Hosuki makes the car body, assembles major subassemblies, and completes final assembly and testing. The body stamping machine operates eight hours a day; setup times per item and run times per unit are given in the next column.

Since the suppliers produce in high volume, the lead time for an order is the same regardless of the quantity of the order. In contrast, with limited sales volume and limited space, Hosuki assembles its cars in batches of 10. Each assembly process takes half a day.

Hosuki has just received its first corporate order—for 10 midsized vehicles. The customer would like delivery as soon as possible.

1.  

Create a time-phased assembly chart to determine when the 10 cars can be delivered.

2.  

What adjustments are needed in inventory levels, lead times, and batch sizes to fill an additional customer order for five custom cars in five days?

Virtual Bill of Material

Item

Qty

Midsize car

1

Chassis Assembly

1

Frame

1

Power Train Subassembly

1

Engine

1

Transmission

1

Radiator

1

Battery

1

Suspension Subassembly

1

Shocks

2

Brakes

1

Body Assembly

1

Windshield

1

Seats

4

Tire Assembly

4

Wheels

1

Rims

1

Tires

1

Supplier

A

B

C

D

E

F

Hosuki

Supplier lead time is given in days

Supplier A

OH

LT

Shocks

20

1

Barkes

2

4

Supplier B

OH

LT

Seats

6

2

Supplier C

OH

LT

Wheels

20

1

Rims

2

2

Tires

10

5

Supplier D

OH

LT

Frame

10

2

Windshield

5

4

Supplier E

OH

LT

Engine

5

5

Transmission

10

6

Supplier F

OH

LT

Radiator

10

1

Battery

5

3

Hosuki's Body Stamping Machine

Qty

Setup (hrs)

Runtime (hrs/unit)

Qtr Panel

4

2

0.5

Hood

1

1

0.2

Fender

2

2

0.3

Roof

1

2

0.2

Doors (LH, RH)

4

2

0.2

Key:

OH= on hand quantity

LT= lead time

Qty= quantity per next level of assembly

1.  

Create a time-phased assembly chart to determine when the 10 cars can be delivered.

2.  

What adjustments are needed in inventory levels, lead times, and batch sizes to fill an additional customer order for five custom cars in five days?

Virtual Bill of Material

Item

Qty

Midsize car

1

Chassis Assembly

1

Frame

1

Power Train Subassembly

1

Engine

1

Transmission

1

Radiator

1

Battery

1

Suspension Subassembly

1

Shocks

2

Brakes

1

Body Assembly

1

Windshield

1

Seats

4

Tire Assembly

4

Wheels

1

Rims

1

Tires

1

Supplier

A

B

C

D

E

F

Hosuki

Supplier lead time is given in days

Supplier A

OH

LT

Shocks

20

1

Barkes

2

4

Supplier B

OH

LT

Seats

6

2

Supplier C

OH

LT

Wheels

20

1

Rims

2

2

Tires

10

5

Supplier D

OH

LT

Frame

10

2

Windshield

5

4

Supplier E

OH

LT

Engine

5

5

Transmission

10

6

Supplier F

OH

LT

Radiator

10

1

Battery

5

3

Hosuki's Body Stamping Machine

Qty

Setup (hrs)

Runtime (hrs/unit)

Qtr Panel

4

2

0.5

Hood

1

1

0.2

Fender

2

2

0.3

Roof

1

2

0.2

Doors (LH, RH)

4

2

0.2

Key:

OH= on hand quantity

LT= lead time

Qty= quantity per next level of assembly

Explanation / Answer

Supplier maximum lead time is = 6 days

Number of cars has to produced =10

working hours per day is =8 hour

Hosuki assembles its cars in batches of 10.

Each assembly process takes half a day

Time-phased assembly chart

Hosuki's Body Stamping Machine

Particulras                     Qty           Setup (hrs)     Runtime    Total run time    Total Time

Qtr Panel                          4                 2                     0.5            4*0.5=2          2+2=4

Hood                                 1                1                  0.2           1*0.2=0.2    1+0.2= 1.2

Fender                             2                 2                     0.3           2*0.3=0.6         2+ 0.6=2.6

Roof                                 1                 2 0.2    1*0.2=0.2    1+0.2=2.2

Doors (LH, RH)                4                  2                    0.2            4*0.2=0.8         2+ 0.8=2.8

Total parts time per car= 4 hours + 1.2 hours + 2.6 hours+ 2.2 hours + 2.8hours

=12 .8 hours

for 10 cars = 12.8 * 10 =128 hours

working hours per day is =8 hour= 128 hours / 8 hour=16 days

Hosuki assembles its cars in batches of 10, Each assembly process takes half a day

=10 cars / half day per car = 5 days

Total time for making 10 cars   is = 16 days +5 days +3 days adding for subassemblies = 24 days is delivery time

Notes:

Total run time = quantity * Run time

Total time = set up hours + Total run time

_____________________________________________________________________________________

2) Delivery the 5 cars within five days is not possible assembly itself taken 2.5 days

10 cars =128 hours

for five cars = 128 hours /5 cars =64 hours

per days working hours is 8 hours =64 hours / 8 hours per day=8 days

so 8 days +2.5 days = 10.5 days atleast need to delivery the 5 cars.

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