Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 16, Problem 12DQ
Summary Introduction

To identify: The type of lean technique which works in both the manufacturing and service sectors.

Introduction: Lean production is a popular philosophy which follows Just-in-time approach. It is a technique which aims to reduce wastage in the production line and achieve continuous improvement.

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Question 13 The Kanban calculations do not factor in an allowance for safety stock. True False
QUESTION 2 (LEAN OPERATIONS AND JUST-IN-TIME(JIT) - DETERMINING THE NUMBER OF KANBAN CONTAINER) Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?
QUESTION 1 (LEAN OPERATIONS AND JUST-IN-TIME(JIT) - DETERMINING OPTIMAL SET UP TIME) A product has annual demand of 22,000 units. The plant manager wants production to follow a two-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? Daily demand, d=88 per day (250 days per year), daily production, p=250 units per day, H=$50 per unit per year, and desired lot size, Q-63 (demand for two hours). a. What is the setup cost, based on the desired lot size? b. What is the setup time, based on $40 per hour setup labor? c. The plant manager is informed that the set up time for the desired lot will take 5.0 minutes. Can he use the lot size, Q=63? Show calculation of your answer. Hints calculate set up cost for per set up(set time 5 minutes) and then calculate EOQ using the calculated set up per set up.
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