National Cranberry Cooperative
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?
Refer to the power point presentation. 2. What is the maximum long-term achievable throughput rate of receiving Plant 1? What factors affect this throughput rate?
The Truck arrival rate is at 20 Trucks/Hr. This year based on the numbers there is going to be 70% Wet and 30% Dry Berries.
Dried Berries:
Throughput rate = 30% of 20 Trucks = 6 truck (dried)/hr @ 75 bbls = 450bbls/hr Wet Berries:
Current Throughput rate possible = 600 bbls/hr or 8 Trucks/hr (Bottleneck)
Since 70% of 20 Trucks implies 14 Trucks/hr, we can expect the maximum long-term
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Total waiting hours = 132 Hrs.
The average waiting hours per truck = 132/168 = 0.786hrs/truck=47 minutes/truck.
6) What benefits would you expect if processing time were moved up from 11:00 am to 07:00 am during the peak period? Should this be done for the entire season?
11:00 A.M – Plant Start
Truck waiting costs = 552*$12.00/hr = $6624/day
07:00 A.M – Plant Start Truck waiting costs = 132*$12.00/hr = $1584/day We get, savings for shifting from 11.00am to 7am = $6624 - $1584 = $5040/day As the other costs are the same for both the working times, there is absolutely savings for moving up from 11am to 7am. As the season is from September 20 through October 10 there are 20 days of peak season.
Therefore we get, total savings per season = $5040*20=$100800/season Total savings per season = $100800/season. It should be done for the entire season.
7) NCC is considering the purchase of two new dryers(each costs $10000, the cost includes installation cost) and conversion of up to 10 dry berry holding bins (each costs $2000, that includes labor and material cost) so that they can hold water-harvested or dry berries. What are your recommendations? Assume that drivers are paid $12 per hour.
Addition of two new dryers implies the increased capacity for the drying station. They add an additional capacity of 2*200bbls wet berries per hour.
Total capacity for wet berries = 600+400 bbls=1000bbls = 1000/75 = 13
3. Compare the financial results from Question 1 and 2 and highlight your observation regarding contribution. Based on your calculations, what is the relationship between volume and cost?
In this section we will show with the aid of a sample of our calculations and using the equations presented in the previous section, how the system throughput can be calculated (using the CIA as a reference).
The table above lists the number of acres it takes to produce one cargo container of oranges and one cargo container of bananas in the United States and Costa Rica. Which of the following is true?
System utilization and throughput is more affected by demand arrival time comparatively other three factors. Distance preference also affects throughput and system utilization. For both system utilization and throughput distance preference should be smallest and as the demand arrival time increases both system utilization and throughput of system decreases. Number of AGVs and velocity of AGVs are less
Each additional dryer will increase the amount of water-harvested berries that can be processed by 200 bbls. per hour for berries loaded to bulk trucks,
* Will have to buy new dryers to account for increase in wet berries processed through dechaffing
The capacity of the Dechaffers for the dry berries was also given as 1500 bbl/hr and once again the implied and actual utilization will be 1.0. Switching to the Wet Berries, we see that there are two Dechaffers that can each store up to 1500bbl/hr, which will add up to a capacity of 3000bbl/hr. We can calculate the implied utilization of the wet berry Dechaffer by dividing the input rate (1500bbl/hr) by the capacity (3000bbl/hr) and the actual utilization by dividing the Flow Rate (600bbl/hr) by the capacity (3000bbl/hr). The Dryers set the standard for the wet berries because they are the bottleneck of the operation. There are three dryers that can process 200bbl/hr, giving us a total capacity of 600bbl/hr. The implied utilization is not very realistic because it takes the 1500bbl/hr input rate and divides it by the 600bbl/hr capacity. The actual utilization of a bottleneck is always 1.0 because it is operating at maximum capacity. Lastly, there are three separators that have a capacity of 400bbl/hr each, giving us a total of 1200bbl/hr. The implied utilization will be discovered as 1.25 because you are taking the 1500bbl/hr input rate and dividing it by 1200bbl/hr capacity. The actual utilization can be found by 600bbl/hr (wet berries) plus 375bbl/hr (dry berries) and using them as your input rate. So you will divide the 975bbl/hr by 1200bbl/hr capacity and get .8125.
2. Alpha company has 4 departments. A & B are support departments, 1 & 2 are
The assignment method was used in determining ways that the schedule can be change to maximize production while reducing idle time, completion time, and potentially labor costs. Using the information that was provided, Operator A will cost $10.00 for the first job, $11.00 for the second, $9.00 for the third, and $10.00 for the fourth. Operator B will cost $12.00 for the first job, $9.00 for the second job, $8.00 for the third, and $8.00 for the fourth. Operator C similarly will cost $11.00 for the first, $11.00 for the second, $11.00 for the third, and $9.00 for the fourth. Last, Operator D will cost $11.00 for the first, $11.00 for the second, $9.00 for the third, and $10.00 for the fourth. While
Secondly, purchasing one additional dryer would cost $60,000. Then, the process capacity would increase to 800 bbls/hr. The dry berries (375bbls/hr) and the wet berries (800bbls/hr) would now sum up to 1175 bbls/hr, which will increase the utilization rate of separators to 97.91%. The resulting increase in flow rate could reduce the overtime labor as much as $78,000 (assuming 12,000 over time hours of all workers * $6.5/hr) and the return on the investment would be 0.3 (18,000/60,000).
2. At a steady state we'd be able to produce 6 (process capacity) x 4 (hours) = 24 dozen per night. At a starting state, assuming that 1st dozen takes 26 minutes, and we move into a steady state of production, we
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