CLASS ASSIGNMENT –OPERATIONS MANAGEMENT
TOSHIBA OME WORKS
Objective : Increase Productivity and lower Costs in conjunction to introduction of
new subnotebook computer model.
Aim : Initial Production of new model to be 150 units per day and later to be increased
to 300 units per day in the following week.
Key Points to Note :
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Total Workforce- 2600 employees out of which 440 direct factory workers &
1050 were design engineers.
Category of Factory worker- Full time, Part time, Temporary & Affiliates.
Wages- Full time worker (X1) and overtime (X1+30% of X2) after 7.5 hrs of
daily worktime. Part Time worker (X2) for 6 hrs daily
Total Models as per existing line- 8 different model with 6 different variations i.e
48 model types
Daily lots – 20
Total units – 300 units per line (3 working lines + 1 idle line)
Average time taken for assembly- 2minutes per 10 worker in a line
Existing Assembly Line process
IDLE LINE,
which
could be
utilised
Solution
Individual Burn racks for 24 hrs + preinstalled software test and
Time of production
notebook
foreach
300 line
units in a day per line for a total of 7.5 working
pallet forper
finished
goods for
hours per day. Therefore per unit production in minutes comes to 1.5 Min (90 secs)
(=300/ 450 min) , which is our cycle time.
So total time among 10 workers in existing line is = 10*90 secs = 900 secs
Current Note book line assuming all workers are experienced
Station
No.
1
2
3
4
5
6
7
8
9
Total
Time
taken in secs
110
114
101
107
103
107
108
93
310
10
Total
105
1258 secs
Actual
Remark
110
114
101
107
103
107
108
93
103.33 rounded Three operations are
to 104
performed in parallel
105
1052 secs
being
Total Time from station 1 to 10 = 1052 secs
Therefore total stations required = 1052 secs/ 90 secs= 11.68 i.e rounded off to 12
stations
Hence the no. of stations need to be increased by 02 and will need to hire
additional 04 temporary workers.
Analysis
For increase in cost – 10* 7.5* (X1) + 4*6*(X2) or 10* 7.5* (X1) + 4*6*(X1), where X1
being salary of Permanent workers and X2 being salary of Temporary workers. Correct
decision on hiring between permanent or temporary workers on the basis of salary of
both for cost effectiveness.
By increasing the total stations efficiency will be = 1052/(12*90)= 97%
Further to improve the assembly line the following measures can be undertaken:a)
b)
c)
d)
Kits of the screw drivers can be pre-assembled which can reduce 30
(4+6+4+4+6+6) secs from the process.
Total time saved is 30*300units/line* 3 lines=27000 secs of the assembly line
time.
Total time required to produce one unit is 1228 secs(1258-30).
Total additional units produced =27000/1258=22 unit.
Hence it will be optimal for additional station and workers to be introduced. This
will increase productivity and quality and also decrease dependability on
working skills