OPERATIONS MANAGEMENT
2012/2013
1. Introduction to BAYONNE PACKAGING, Inc
BAYONNE PACKAGING, Inc is a $43 million printer and paper converter company that produces customized paper-based packaging, for industrial customers, for promotional materials software, luxury beverages, gift good and gift candy. Presently, the business is leaded by Dave Rand and the board of the company is constituted by family members, a local banker and outside counsel.
This company is implemented in the paper packaging industry that was featured by the quickly growth between 1980´s and early 1990´s. Due to organizations that chase the desire to make a greater impact with their promotional materials or moved their promotional budget from print media
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Considering that the bottleneck is the resource with the lowest capacity and that the flow rate of the resources is identical, the bottleneck is the resource with the highest capacity utilization.
After computing these values above, we conclude that only one work center operates at full capacity which is the two machines of Heidelberg press (bottleneck). Here are the main reasons that could justify why the other work centers didn’t reach 100% of capacity utilization:
* If demand is less than supply, the process will not run at full capacity, but only produce at the rate of demand. * If there is insufficient supply of the input of the process, the process will not be able to operate that capacity. * If there is one or several processes that only have a limited availability (e.g. maintenance and breakdowns) , the process might operate at full capacity while it is running, but then go into periods of not producing any output while it is not running. This is the case in the Die-Cut work center where production is stopped in order to change dies.
3. Capacity in pieces per day for the Die-Cut center
Taking into consideration the present question, we were asked to find the capacity in pieces per day for the Die-Cut work center, specifically the Bobst Die-Cut. We also have to assume that one order is 30000 pieces.
a) None of the orders can be ganged
When none of the orders can be ganged, meaning that each time
Support the system constraint by placing everything else in the process in subordination to it.
• A situation where a reduction in production will result in less overhead allocated to the respective product
Alex with great success utilizes the theory of constraints to come across Bottlenecks in the manufacturing plant. Jonah explained to Alex that bottlenecks are any resources whose capacity is equal to or less then the demand placed upon it. Alex has to identify the bottlenecks in the system and try to eliminate them, which will allow the control of the flow of materials in the system. This will lead to the decrease inventories, decrease operational expenses, and increase the throughput of the whole plant.
In an actual real-world corporate problem, say, if production in a plant were being analyzed, any instances in which the process goes out of control would have to be studied and necessary measures implemented to ensure the process is within its control limits at all times (Chase, Jacobs, & Aquilano, 2006).
The company is currently using a CNC machine for orders for equal or greater than 140 boards due to capacity of a CNC machine; however, they would be able to process all orders with CNC machines if they add one more machine.
with no work stoppage · · Increase capacity by 44,800 wafers Have control of wafer manufactured
Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?
5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)
3. How does demand variability impact capacity issues at LAA? What can the company do to control variability in demand?
So, to reach your expected target you really need a capacity much larger than your expected output
Capacity is a factories ability to produce items explained as follows, consider a factory that has a capacity of 10,000 " machine hours" in each 40 hour week. This factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week. The actual volume of product that the factory can produce will depend on:
It takes a day out with the Boy Scots for Alex to discover one of his biggest problems at the plant – bottlenecks. A bottleneck is any resource whose capacity is less than the demand placed upon it and thus limiting the throughput. A nonbottleneck is a resource whose capacity is greater than the demand paced upon it and thus will contain idle time. A capacity constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if not scheduled carefully.
Bayonne Packaging, Inc is in the paper packaging industry. In the 1980s and early 1990s companies in the consumer goods industry start to look for a greater impact with their promotional materials and star to implement their promotional budget to the package itself instead of print media and broadcast forms. This led to a rapidly growth on the paper packaging industry.
It is a common desire to have a balanced plant, but this cannot be reached if there are problems with the levels of capacity in the plant. If there is not enough capacity in the plant, it almost seems as if the possibility of having throughput is being lost and if there is an excessive amount of capacity there is money that is being wasted, which would be a problem when trying to reduce the operating expenses. However, in reality the closer that a plant comes to being balanced, the closer they get to losing money. “ Look at this obsession with trimming capacity in terms of the goal,
product matures, however, its price drops and demand is stabilized for a period of time,