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Acme Machining company produces several components for vehicle assembly plants.
With operating costs of 50 00p per hour. This case concerns one product family, a
vehicle disc brake in two types: one each for the off side (RH) and one for the near side
(LH) for a custom built vehicle. These components are sent to the ChrisCar Custom
Vehicle assembly plant (the customer).
The ChrisCar company have suggested that due to market demand, they will be
looking to increase the monthly order to 1,600 per month (double current output).
Would the Acme Machining Company be in a position to respond.
Production Processes
Acmes processes for this product involve drilling, turning, grinding and painting
forged brake disks. The components are then packed and shipped to the customer on
a daily basis at a selling price of 100 00p each.
Forgings are supplied by British Forgings Ltd. and deliveries to Acme arrive on
Tuesdays and at a cost of 20 - 00p per forging.
Customer Requirements
800 pieces per month
400 per month of Type LH
400 per month of Type RH
Customer plant operates on three shifts
Palletized returnable tray packaging with 4 forgings in a tray and up to 5 trays on a
pallet. The customer orders in multiples of trays.
One daily shipment to the vehicle assembly plant by truck.
Work Time
20 days in a month
three shift continuous operation in all production departments
the working week is from 6am Monday to 10pm Friday
Eight (8) hours every shift, with overtime if necessary
Two 10-minute breaks during each shift as well as a 1 hour Lunch.
Processes stop during breaks and lunch.
Process Information
All processes occur in the following order and each piece goes through all processes.
Mask (Manual)
Manual process with one operator
Cycle Time: 15 minutes
Set Time: 0 minutes
Non-conformance: 3%
Observed Inventory after mask prior to visual inspect:
30 pieces of Type LH
42 pieces of Type RH
Distance to Inspect 2 = 4m
Non- conformance 3%
(part transition / waiting time 6.7 hrs)
Inspect 2 (Visual)
Manual process with one operator
Cycle Time: 3 minutes
Set Time: 0 minutes
Non-conformance: 0%
Observed Inventory After visual inspect prior to paint :
18 pieces of Type LH
22 pieces of Type RH
Distance to Paint = 6m
Non- conformance 0%
(part transition / waiting time 3.6 hrs)
Shipping Department - Removes parts from finished goods warehouse and stages
them on pallets for truck shipment to customer.
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