Stonehaven Case Analysis

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Stonehaven, Inc.
Case Analysis

March 19, 2013

Part A
For this part of the analysis, consider each department in the Gdansk factory in isolation. Assume that the rest of the production system has no impact on the department you are considering. Assume that material handling times are negligible and ignore variability in processing times.

1. For the typical 100-pair batch, what is the daily capacity and manufacturing lead time within each of the following departments?

a. Cutting

8 hrs/day x 60 min/hr = 480 min/day

Machine 1 = (0.05 x 4)(100) + (5.25 x 4) = 41 min/batch
Machine 2 = (0.05 x 4)(100) + (5.00 x 4) = 40 min/batch
Machine 3 = (0.04 x 4)(100) + (4.00 x 4) = 32 min/batch

Manufacturing Lead Time (MLT) = Since the machines work simultaneously, the MLT is 41 min/batch.

Capacity = 480 min/day ÷ 41 min/batch = 11.7 batches/day x 100 pairs/batch = 1170 pairs/day

b. Stitching

8 hrs/day x 60 min/hr = 480 min/day

Group 1 = (100/4) x 5.0 = 125 min/batch
Group 2 = (100/3) x 3.0 = 100 min/batch
Group 3 = (100/2) x 2.5 = 125 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 5.0 min + 3.0 min + 125 min = 133 min/batch.

Capacity = 480 min/day ÷ 125 min/batch = 3.84 batches/day x 100 pairs/batch = 384 pairs/day

c. Lasting

8 hrs/day x 60 min/hr = 480 min/day

Station 1 = 100 x 0.7 = 70 min/batch
Station 2 = 100 x 0.6 = 60 min/batch
Station 3 = 100 x 1.0 = 100 min/batch
Station 4 = 100 x 0.9 = 90 min/batch
Station 5 = 100 x 0.3 = 30 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 0.7 min + 0.6 min + 1.0 min + 0.9 min + 30 min = 33.2 min/batch.

Capacity = 480 min/day ÷ 100 min/batch = 4.8 batches/day x 100 pairs/batch = 480 pairs/day

Assumptions: My calculations are based on the assumption that the stamp time in the cutting process is per component. Therefore, the time given is the time it takes to stamp 1 of the 4 components on one machine. Another assumption I have made is the workers performing the stitching are all equally paced. It takes each worker the exact same amount of time to perform their duties and pass the product along to the next group.

2. If the batch size were reduced to 10 pairs, what would be the daily capacity and MLT within each of the following departments? a. Cutting; b. Stitching; c. Lasting

d. Cutting

8 hrs/day x 60 min/hr = 480 min/day

Machine 1 = (0.05 x 4)(10) + (5.25 x 4) = 23 min/batch
Machine 2 = (0.05 x 4)(10) + (5.00 x 4) = 22 min/batch
Machine 3 = (0.04 x 4)(10) + (4.00 x 4) = 17.6 min/batch

Manufacturing Lead Time (MLT) = Since the machines work simultaneously, the MLT is 23 min/batch.

Capacity = 480 min/day ÷ 23 min/batch = 20.9 batches/day x 10 pairs/batch = 209 pairs/day

e. Stitching

8 hrs/day x 60 min/hr = 480 min/day

Group 1 = (10/4) x 5.0 = 12.5 min/batch
Group 2 = (10/3) x 3.0 = 10.0 min/batch
Group 3 = (10/2) x 2.5 = 12.5 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 5.0 min + 3.0 min + 12.5 min = 20.5 min/batch.

Capacity = 480 min/day ÷ 12.5 min/batch = 38.4 batches/day x 10 pairs/batch = 384 pairs/day

f. Lasting

8 hrs/day x 60 min/hr = 480 min/day

Station 1 = 10 x 0.7 = 7 min/batch
Station 2 = 10 x 0.6 = 6 min/batch
Station 3 = 10 x 1.0 = 10 min/batch
Station 4 = 10 x 0.9 = 9 min/batch
Station 5 = 10 x 0.3 = 3 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 0.7 min + 0.6 min + 1.0 min + 0.9 min + 3 min = 6.2 min/batch.

Capacity = 480 min/day ÷ 10 min/batch = 48 batches/day x 10 pairs/batch = 480 pairs/day

Assumptions: (Same as question 1 because all...
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