GSC 3600 MODULE 03 Study Packet

Module 03: Make It

(Manufacturing Strategy, Facilities Location, Mfr Layout, Line Balancing & Capacity, and MRP) While many people have a reasonable grasp on purchasing and logistics concepts, they tend to overlook issues that fall into the category of manufacturing. Everything we buy is produced, manufactured, and/or assembled in its own unique way and thus each item requires its own manufacturing strategy. Each item must be manufactured or assembled somewhere, and much to the surprise of most people, choosing a facilitys location based only on where low cost labor is available is simply ridiculous. As far as the inner workings of production facilities are concerned, most business students need to have at least a rudimentary grasp of typical layout strategies as well as an understanding of manufacturing constraints. What is a MRP system? What does a MRP system do? How a MRP system adds value to a company? Following completion of this module, students should understand enough about manufacturing/assembly that they can at least ask the appropriate purchasing and logistics questions. Supplementary readings: Cultural influences on service design: Do you want pickled beets with that?, Stevensons 11e, pg. 141 Cultural influences in location decisions: Innovative MCI units finds culture shock in Colorado Springs, Stevensons 11e, pg. 341 Service facility location decisions: Vying for patients, hospitals think location, location, Stevensons 11e, pg. 349

Additional Practice problems (Not Required) 1. Use trial and error to balance the assembly line described in the following table and Figure 1 so that it will produce 40 units per hour. a. What is the cycle time? b. What is the theoretical minimum number of workstations? c. Which work elements are assigned to each workstation? d. What are the resulting efficiency and balance delay percentage? e. Work Element A B C D E F G H I J K Total Time (sec) 40 80 30 25 20 15 60 45 10 75 15 415 Immediate Predecessor(s) None A A B C B B D E,G F H,I,J

GSC 3600 MODULE 03 Study Packet

Answer: a. b. c. d. 2.

90 sec/unit 4.611 5 Five workstations - ACE---B---GD---HFI---JK Efficiency = 92.2% Johnson Cogs wants to set up a line to serve 60 customers per hour. The work elements and their precedence relationships are shown in the following table. a. What is the theoretical minimum number of stations? b. How many stations are required using trial and error to find a solution? c. Suppose that a solution requiring five stations is obtained. What is its efficiency? Work Element A B C D E F G H I J Total Time (sec) 40 30 50 40 6 25 15 20 18 30 Immediate Predecessor(s) None A A B B C C D,E F,G H,I

Answer: a. 60 sec/unit and 4.556 5 b. Six workstations - A---C---BF---DG---IEH---J c. Efficiency = 91.33%

GSC 3600 MODULE 03 Study Packet

New Product Development

What are the primary differences between strategic, design, and operating decisions? What does the company need to consider when designing new products? Why? How do design decisions impact the management and the effectiveness of the supply chain? Be able to recall the examples discussed in lecture.

Facilities Location Considerations

What are some of the key issues companies must consider in choosing a location for manufacturing? Why is each of those considerations important? What are some of the more complex considerations related to labor? What does it mean to have established channels of distribution and an established supplier base? What are hypercompetitive markets? Give some very common examples of this.

Manufacturing and Layout Strategies

Divide as much information as possible into three lists: A. Line Flow - Assembly Line, Continuous Flow, Fast, Standardized, Make-to-Stock, etc. B. Flexible Flow - Job shop, High Performance, Slower, Customized, Make-to-Order, etc. C. Hybrid Systems - Batch, GT(Cellular), Moderate speed, Moderate Customization Things to include in your lists - What is a Flex Flow or Line Flow system? Strengths and weaknesses of each system? When should each be utilized? Any special characteristics associated with each? Other names for these systems? How can you grade whether or not your layout is effective, efficient, and adaptable?

Line Balancing and Capacity Issues

How do create an efficient assembly line to help you achieve your organizational goals. What is a bottleneck? What are the trade-offs that must be considered in developing a balanced line? Be able to complete line balancing problems: A. What is Cycle Time? What does it dictate? What is effective CT? Why is each important? How does it relate to capacity? B. Understand all required calculations. C. What is Line Balancing? What are the goals? How do you balance a line? D. Be able to tell whether or not a line is balanced. E. What are the CT rule and the Precedence rule? Be able to tell whether or not a line solution is adhering to precedence rules and/or cycle time rules.

MRP
What is dependent demand? How is it different from independent demand? What is MRP? What are the purposes of using MRP? What are the main inputs to MRP? What does MRP tell you? Are you able to give examples of MRP in services? What are the main benefits of using MRP?

Understanding Module 03
These questions are intended to help you see if you understand how this modules topics all tie together. 1. Look around the room, what was manufactured? What was assembled? What type of facility do you think was used to make that item? Where do you think that item produced? Where were the components produced? 2. Think of a major item. How would you produce that item on an assembly line? What value could you add to the item by utilizing a Flexible Flow or Hybrid system? 3. Choose 4 US cities. What would be the key considerations associated with locating a factory in each city? Do the same for 4 different international cities/countries. 4. While you are unlikely to ever balance an assembly line on your own, what are some lessons that you can take away from line balancing that might be useful to you in starting your own business? 5. Why arent we recommended to continuously hold dependent demand items? 6. What information do you need for running a MRP system and what information could a MRP system provide you?

Practice Questions:

GSC 3600 MODULE 03 Study Packet

Are you understanding Module 03? This may help answer that question. While this may be useful for some students, please understand that some exam questions are very likely going to be much more difficult. 1. Which of the following is a type of manufacturing layout? a. Project layout b. Flexible Flow layout c. Patient layout d. All of the above Which of the following determines product design? a. Customers needs b. Technology requirements and availability c. Service possibilities and requirements d. Material costs and production complexity e. All of the above Which of the following affects manufacturing facility location decisions? a. Competitive priorities b. Product characteristics c. Resource availability d. Labor cost e. All of the above What is the minimum number of workstations given the following: the sum of all task times is 360 seconds, the cycle time is 60 seconds, and the output per day is 480. a. 8 stations b. 6 stations c. .16666 stations d. 2 stations Which of the following might be made on an assembly line? a. Customized birthday cake b. Childrens toys c. Hand Crafted wood carvings d. All of the above

2.

3.

4.

5.

5 A

15 B 25 15 D 10 C 20 G E 10 F

6.

If the cycle time is 30 seconds, which of the following would NOT be acceptable as the first workstation? Use the above precedence diagram. A. AC B. ADC C. DB

GSC 3600 MODULE 03 Study Packet

D. CD
7. If the cycle time is 40 seconds, what would be the theoretical minimum number of workstations? Use the above precedence diagram. a. 2 Workstations b. 3 Workstations c. 4 Workstations d. 5 Workstations

Answer Key: 1.B 2.E 3.E 4.B 5.B 6.C 7.B