Batching and Setup Times

OPIM 101 Mentoring

Session 3
 Capacity Revisited

Number of units that can be produced in a

given amount of time

Number of units produced

Capacity
Time to produce those units
 Batches

A batch is a group of items to be produced

e.g. Volvo XC90s, Rolex Watches, Dell Computers

The batch size is the number of items that are

produced in a batch
e.g. 100 Volvo XC90 are produced in one batch

The processing time is how long it takes to

make one of the items in the batch
 Batches

The time to produce a batch is the sum of the

time it takes to set up production and the actual
production time of the batch

Time to produce a batch =

Setup time + Batch size x Processing time
 Capacity & Batches

The capacity of a process, given a batch size

for that process, is:
Batch size
Capacity
Setup time Batch size Processing time
 Capacity & Batches

To determine the batch size that meets a

certain capacity, we use the following
formula, rearranged from the capacity formula:

Capacity Setup time

Batch size
1 - Capacity Processing time
 Utilization

Utilization is the percentage of time actually

producing.

For a process with a setup time:

Utilization = Flow Rate x Processing Time
 Inventory

For a process with a setup time:

Average inventory = (1/2) x Batch Size x (1 - Flow
Rate x Processing Time)
Maximum inventory = Production time x Rate of increase
= B x p x (1 / p R)
= B x (1 R x p)
Inventory

Average inventory = Maximum inventory

= x B x (1 R x p)

Rate of increase = 1/p - R

Time
Production time = B x p
 Batch size tradeoff

Reducing the batch size

reduces inventory and, therefore, inventory holding
costs

But
also may reduce capacity (too much time is spent
on setups) and utilization.
 Question 1 (7.5 in text)

Consider the following batch flow process

consisting of three process steps performed by
three machines:

Work is processed in batches at each step. During setup time,

the machine is unable to process any product. Assume there is
an unlimited inventory buffer between each process step.
 Question 1

a) Assume that the batch is 50 parts.

What is the capacity of the process?
What is the utilization of Step 1?
b) Consider a batch size of 10 parts.
Which step is the bottleneck of the process?
What is the utilization of Step 1?
c) What batch size would you choose to minimize down time?
d) If the batch size is 50. What is the average inventory at step 1?
 Question 1a

Assume that the batch is 50 parts.

What is the capacity of the process?
What is the utilization of Step 1?

Calculate the process capacity at each step :
B / (S + Tb)

B = batch size

S = set-up time

Tb = time to process the entire batch.
Step 1: capacity = 50 units / (20 minutes + (1*50)
minutes) = .714 units/minute = 42.86 units/hour.

Step 1 Step
20 min 2: capacity =5060minmin/hr
setup processing/ 2 min/unit30=min
30forced idle
Step 2
units/hour. 100 min processing
Step 3: capacity = 60 min/hr / 1.5 min/unit = 40
 Question 1b

Consider a batch size of 10 parts.

Which step is the bottleneck of the process?
What is the utilization of Step 1?

The only step dependent on the batch size is
Step 1. With a batch size = 10 units, the
capacity of Step 1 becomes 10 units / (20 mins
+ (1*10) mins) = 10 units / 30 mins = 20
units/hour.

Therefore, Step 1 becomes the bottleneck and
the flow rate is 20 units/hr

Utilization
Step 1
= 20 units/hr * (1/60 hr/unit) =
20 min setup 10 min processing
33.3%
Step 2 20 min processing 10 min forced idle
 Question 1c

What batch size would you choose to minimize down time?

 Question 1c

What batch size would you choose to minimize down time?

To determine an optimal batch size, we set the process

capacity of Step 1 (the only step dependent on batch
Capacity size)
Setup time
Batch size
equal to the capacity of the would-be bottleneck
1 - Capacity (Step 2: 30time
Processing
units/hr).

Solve for B using this formula:

 Question 1d

If the batch size is 50 what is the average inventory at step 1?

 Question 1d

If the batch size is 50 what is the average inventory at step 1?

The flow rate (from Q1a) is 30 units per hr.

Processing time is 1/60 hr per unit.
Average inventory = (1/2) x Batch size x (1 Flow rate x
Processing time)
= (1/2) x 50 x (1 30 units/hr x 1/60 hr/unit)
= 12.5 units
 Question 2
PTest does fluid testing for several local hospitals. Consider their urine testing
process. Each sample requires 12 seconds to test, but after 300 samples, the
equipment must be recalibrated. No samples can be tested during the
recalibration process and that process takes 30 minutes.

a) What is PTests maximum urine test capacity (in samples per hour)?
b) Suppose 2.5 urine samples need to be tested per minute. What is the smallest
batch size (in samples) that ensures that the process is not supply constrained?
(Note: A batch is the number of tests between calibrations.)
c. PTest also tests two types of blood samples: a basic test and a complete
test. Basic tests require 15 seconds per sample, whereas complete tests
require 1.5 minutes per sample. After 100 tests, the equipment needs to be
cleaned and recalibrated, which takes 20 minutes. Suppose PTest runs the
following cyclic schedule: 70 basic tests, 30 complete tests, recalibrate, and
then repeat. With this schedule, how many basic tests can they complete per
minute on average?
 Question 2a

What is PTests maximum urine test capacity (in

samples per hour)?
 Question 2a

What is PTests maximum urine test capacity (in

samples per hour)?

PTest can test 300 samples in:

(12 seconds)*300/(60 seconds/minute) + (30 minutes) = 90
minutes, or 1.5 hours.

The capacity is (300 samples)/(1.5 hours) = 200 samples/hour.

 Question 2b
Suppose 2.5 urine samples need to be tested per minute. What is the
smallest batch size (in samples) that ensures that the process is not supply
constrained? (Note: A batch is the number of tests between calibrations.)
 Question 2b
Suppose 2.5 urine samples need to be tested per minute. What is the
smallest batch size (in samples) that ensures that the process is not supply
constrained? (Note: A batch is the number of tests between calibrations.)

Capacity Setup time

Batch size
1 - Capacity Processing time

Capacity: 2.5 samples/minute

Setup time: 30 minutes

Processing time: 12 seconds/60 seconds/minute = 0.2 minutes

The smallest batch size that achieves a flow rate of 2.5 samples
per minute is:
 Question 2c
PTest also tests two types of blood samples: a basic test and a complete test.
Basic tests require 15 seconds per sample, whereas complete tests require 1.5
minutes per sample. After 100 tests, the equipment needs to be cleaned and
recalibrated, which takes 20 minutes. Suppose PTest runs the following cyclic
schedule: 70 basic tests, 30 complete tests, recalibrate, and then repeat. With this
schedule, how many basic tests can they complete per minute on average?
 Question 2c
PTest also tests two types of blood samples: a basic test and a complete test.
Basic tests require 15 seconds per sample, whereas complete tests require 1.5
minutes per sample. After 100 tests, the equipment needs to be cleaned and
recalibrated, which takes 20 minutes. Suppose PTest runs the following cyclic
schedule: 70 basic tests, 30 complete tests, recalibrate, and then repeat. With this
schedule, how many basic tests can they complete per minute on average?
Number of units produced
Capacity
Time to produce those units

Number of units produced: 70 basic tests

Time to produce units: Basic test production time + Complete test production time +
Setup time
Basic test production time: (15 seconds per test)/(60 seconds per minute)*(70 tests) = 17.5 minutes

Complete test production time: (1.5 minutes per test)*(30 tests) = 45 minutes

Setup time = 20 minutes

The number of basic tests per minute =

 Question 3
Bruno Fruscalzo decided to set up a small production facility in Sydney to sell
to local restaurants that want to offer gelato on their dessert menu. To start, he
would offer only three flavors of gelato: fragola (strawberry), chocolato
(chocolate), and bacio (chocolate with hazelnut). After a short time he found
his demand and setup times to be

Fragola Chocolato Bacio

Demand (kg/hr) 10 15 5
Setup Time (hr) 3/4 1/2 1/6

Bruno first produces a batch of fragola, then a batch of chocolato, then a batch
of bacio, and then he repeats that sequence. For example, after producing
bacio and before producing fragola, he needs 45 minutes to set up the ice
cream machine, but he needs only 10 minutes to switch from chocolato to
bacio. When running, his ice cream machine produces one flavor at a time at
the rate of 50 kg per hour no matter which flavor it is producing (and, of
course, it can produce only one flavor at a time).
 Question 3
Fragola Chocolato Bacio

Demand (kg/hr) 10 15 5
Setup Time (hr) 3/4 1/2 1/6

a) Suppose Bruno wants to minimize the amount of each flavor produced at

one time while still satisfying the demand for each of the flavors. (He can
choose a different quantity for each flavor.) If we define a batch to be the
quantity produced in a single run of each flavor, how many kilograms should
he produce in each batch?
b) Given your answer in part (a), how many kilograms of fragola should he
make with each batch?
c) Given your answer in part (a), what is the average inventory of chocolato?
 Question 3a
Suppose Bruno wants to minimize the amount of each flavor produced at
one time while still satisfying the demand for each of the flavors. (He can
choose a different quantity for each flavor.) If we define a batch to be the
quantity produced in a single run of each flavor, how many kilograms
should he produce in each batch?
 Question 3a
Suppose Bruno wants to minimize the amount of each flavor produced at
one time while still satisfying the demand for each of the flavors. (He can
choose a different quantity for each flavor.) If we define a batch to be the
quantity produced in a single run of each flavor, how many kilograms
should he produce in each batch?
Capacity Setup time
Batch size
1 - Capacity Processing time

Each batch consists of three flavors, so:

Setup time = 3/4 hours + 1/2 hours + 1/6 hours = 17/12 hours

Desired Capacity = 10 kg + 15 kg + 5 kg = 30 kg

Processing time = 1/50 hr/kg

The desired batch size is (30 x 17/12)/(1 - (30 x 1/50)) = 106 kg

 Question 3b
Given your answer in part (a), which is 106 kg, how many
kilograms of fragola should he make with each batch?
 Question 3b
Given your answer in part (a), which is 106 kg, how many
kilograms of fragola should he make with each batch?

Fragola is 10/30 of the total demand, so produce:

(10 kg/30 kg)/(106 kg) = 35.33 kg

 Question 3c
Given your answer in part (a), which is 106 kg, what is the
average inventory of chocolato?
 Question 3c
Given your answer in part (a), which is 106 kg, what is the
average inventory of chocolato?

The Flow Rate of chocolato is 15 kgs/hr

The processing time of chocolato is 1/50 hr / kg

Chocolato is of total demand (15 kgs per hr / 30 kgs per hr), so the batch
size for chocolato is x 106 = 53 kgs.

Average inventory = (1/2) x Batch size x (1- Flow rate x Processing

time)
= x 53 kgs x (1 15 kgs/hr x 1/50 hr / kg)
= 18.6 kgs.