According to the layout of the production line, it is clear there are 8 different stations where employees specifically complete tasks like, the rugged wear work boot (RWWC).for purposes of efficiency and xosts minimization, it is recommendable for the company to reduce the number of workstations from 8 to say 5. Since project A, D and H have longer time span. It is important for the company to focus on project g which has less time allocation. Therefore, reducing workstation from 8 to 5 will make the operation efficient and cost effective.
Slide 5
The network diagram above provides a blueprint of how tasks are executed and the time taken to complete the tasks. For instance, task A takes 10 minutes while B and c take 9 minutes to complete. The diagram also shows which stations performing the tasks.
The sum of the time needed for each task before the tasks were combined at workstations 2 and 4. By combining tasks so that (a) the product does not need to pass from workstation to workstation Ten Minutes have been saved . Therefore 36 minutes is equal to the new cycle time. 46 minutes originally minus 10 minutes combing tasks = total cycle time of 36 minutes
Workstations 2 and 4 have multiple production processes and hence the production time will be reduced. This arrangement provides the most efficient operation plan leading cuts in production line costs.
Slide 7
Slide 8
The optimum expected solution would be to for the production mix of tassel loafers and penny loafers that would maximize profits
Slide 11
The company must select Beijing over Delhi because it is leading over its competitor in key areas of the business such as productivity and attitude. The Chinese will ensure that they provide their partners with high quality products and supplies in order to preserve FDI
Slide 12
In order to optimize costs (efficiency) and meet the demand efficiently POM fro Windows was used. The linear programming and cost optimization tools in POM were used. Resource allocation is aided by the linear programming tool.
The constraints: The company needs to meet a production goal of at least 25 batches of loafers with tassels and 10 batches of penny loafers as a starting to point. (See column RHS) Loafers with tassels are more expensive to produce at $2000 and the penny loafers are produced at a cost of $1500 per batch.
The results are that 25 batches of both types of shoes should be produced.
The cost would be $87,500.
The tasselled loafers are assembled (in the Assembly department) for 2 hours and then move to the finishing department for 8 hours to be finished. The total profit = $800
The penny loafers need 6 hours in the assembly department and 4 hours in the finishing department. The total profit $1,200
Minimum hours of capacity for tasselled loafers = 1,200 hours & minimum production level for tasselled loafers = 50 tasselled loafers
Minimum hours of capacity for penny loafers = 1,600 hours & minimum production levle for penny loafers = 100 pairs penny loafers
The POM for Windows was used. The result was that if 120 batches of tasselled loafers and 160 batches of penny loafers are produced, profits will be maximized to $288,000
Slide 13
A decision tree can be used to make money or to save money. $20,000 was invested in a survey to determine the expected monetary value EMV of the following scenarios dependent on favorable or unfavorable marketing conditions.
- T o build a standalone
Trade-offs need to be made but which ones are the best to choose? The market research team that provided the survey recommended that the best scenario was to build a stand-alone building to house a new store. The highest profits are predicted by the results of the survey to be made using the stand alone scenario. The predicted profits of carrying out the plan are $210,000.
Excel and POM for Windows were used to input the data and better understand a favorable probability of success. The use of the two tools was helpful because the decision is a difficult one to make. The Stand-alone store has a possibility of adding profits of $700,000 if the market is favorable. With unfavorable markets no profits were predicted, but instead a loss of $400,000. With the renting of a commercial space (in a mall) the profits are expected to be 43 percent less than with a stand alone store, at the same time, during unfavorable markets the losses would also be less; approximately 14 percent less losses. [($50,000/$400,000) * 100]
The $20,000 for the market research is an investment because the uncertainty in which scenario to chose is minimized. The market research tells me that the best scenario is to build a stand alone store. The odds are that a 70% increase in profits is possible. The favorable outcome will depend on other factors that were considered in the decision tree, but the uncertainties of proceeding with the project are less.
T
Slide 14
- Preparing a Gnatt chart (red) at the beginning stages of the project, that is during the planning stages, is time-consuming. But the pay-off comes during the project when time is being saved and stress is relieved because a basis for the long-term planning has been laid. Gnatt allows enough flexibility to make necessary changes in the chart as the situation on the ground changes. The Critical Path (blue) is automatically generated and aids in the carrying out the project to its end. On the one hand the Gnatt chart aids in deciding how soon the project can be started, whereas the Critical Path predicts the longest amount of time it will take to finish the project. By using the Gantt chart and Critical Path simultaneously the project manager can determine which components along the critical path can be ‘crashed’ or not used because they are unnecessary. In that way, the project can be shortened in the most realistic manner.
CPM adds some flexibility in choosing components in the timeline to crash, thereby shortening the project duration. But to make CPM more flexible, using CPM with PERT is a better choice. Project Evaluation and Review Technique (PERT). The reason is because with PERT a project director has the option of evaluating three different project end times. Plus, in order to help the project manager judge uncertainty, PERT calculates standard value and standard deviation.
Slide 15
Critical path sets one length of duration of the project giving one end time but the option to shorten the project using critical path is the opportunity to crash portions of the project that have been deemed unnecessary. The slide depicts the critical path form making up-grades at the Bellevue store. The length of duration is 108 2 days (about 3.5 days). By looking at the chart only, without even knowing what D component is about, we know that D does not have an effect on the length of the project because it runs in parallel to the critical path, not on the critical path.
The project manager must determine the 95 percent probability of completing the plan on time. The equation needed is Due Date = Expected Completion Time + (appropriate area under the normal curve * the project standard deviation) Z-values can be looked up on Appendix 1. Z is equal to the area under the normal curve. In this case the 95 percent level correlates with 1.64 (without going above the 95 percent level of probability) . 108.2 + (1.64 * 8.46) = 122.07 days, therefore 123 days are needed to finish the project.
The project manager also must determine what component of the project can be crashed if unavoidable delays occur. In this case if 5 days are needed, then Activity one is the best choice for meeting the 5 days time table and will only cost of $500 per day (Total $2500)
Slide 16
The Schuzworld Project Expansion Option needs to meet target dates.
A simple calculation can be used to find a target day and the equation includes the standard deviation (Where Z = 95% and
σp = standard deviation for the project)
Z = (Target Time – Expected Time) \ σp, so rearranging the equation gives
Expected Time = Project Completion Time + (Z * σp)
Target Time = (Z * σp) + Expected Time
= (1.645 * 8.46) + 108.20
= 122.12 days
Slide 17
Crashing by 5 days
The lowest crash cost (run by Gnatt programming and Excel) ranges from $2400.50 to $2500
Crashing by 5 days
Slide 18
Kidshuz shoes and sneakers:Production Mix
Linear programming was used to Linear Programming
When X1 = # Kidshuz Shoe Batches, and
X2= # Kidshuz Sneaker Batches
Optimize 2000X1 + 1500X2
Constraints are
X1+ X2 = 50,
X1 ≥ 25,
X2 ≥ 10, and
X1, X2 ≥ 0
Slide 19
Optimizing a mixed production line for Kidshuz shoes and sneakers
Was calculated on the Excel according to the linear programming
25 batches of Kidshuz shoes and 25 batches of Kidshuz sneakers
For the minimum cost achievable $87,500
Slide 21
120 batches of Kiltie Tassel Loafers and 160 batches of Classic Penny Loafers would optimize the production of loafers and maximize profits.
The maximum profit possible is $288,000.
Slide 23
The simulation started with an order quantity of 30 and a reorder quantity of 12. The first Monte Carlo simulation calculated when the demand is 9.85 units per day, then the ending inventory needs to be 10.25 units/day. An average lost sales of 1.4 units/day (28 lost sales/20 days = 1.4)
An average number of orders placed equal to one order approximately every 2.0 days (20 days / 9.85 orders = 2.03)
Slide 25
There are numerous forms of scheduling techniques, including milestones, Gantt charts, network, balance line, and combinations thereof. All the advantages and disadvantages, depending on the type of activity associated with the project (Johnston, 2013). The network is often preferred for large, one type of projects, especially now that modern software and computer graphics and updated progress of related administrative burden reduction. However, the network is not suitable for repetitive manufacturing process; wire balancing or manufacturing process schedule, but will be more appropriate
Slide 27
These calculations are on the next slide: The next Monte Carlo simulation used inputs of order quantity = to 35 units and reorder = 15 units
The results (outputs) are demand = 9.85 units/20 days
Ending inventory = 14.2 units/20 days
And lost sales = 1 lost sale/ days
The results show that the demand is approximately 9.85 units every 20 days, so 9.85 units/20 days = 0.4925 units/day or ~ 0.5 units per day. Average number of orders placed is 9.85 units every 20 days or 0.479 which can be rounded up to about 1 sale every 2 days
For reorders based on the outputs
9.58 units = (35 units) / (x days)
x days = 35 units / 9.85 units
x = 3.6 days,
when x equals approximately 3.6; it would be good to send 35 units every 3.6 days to maintain the end-of-day inventory of 14.2 units each day (predicted from the simulation)
The simulation predicts 1 lost sale every 20 days
Slide 31
Slide 33
In this task, it is required to analyze the level of reliability in using the Computer Driven Shoe Making Process. There are basically three manufacturing based machines regarded as Casual Deck Shoes use to analyze the casual relationship between the production and utilization of machines. The entire line of the production comes on to the level of standstill and then no further production would be there until a machine is replaced or repaired accordingly. Hence the maintenance and repair would be effective for the company and specifically for their warehouses.
Obviously sticking and emphasizing on the analyses and core efficiency base would certainly help out a company to increase its efficiency and it also improves its reliability to its consumers. It is important to analyze the current level of reliability of all of the three machines deployed and used by Shuzworld in their operations
Slide 34
Slide 35
The system of one cashier will be having of specific times which are longer due to which the probability or the amount of the unhappy customers would be on a higher scale. Customers cannot wait for long and efficiency lies in the essence of minimizing the timings of their wait. By using the one-cahier based operating system, which is based on First in First out (FIFO), Shuzworld will become able to reduce down the level of customers waiting. If the company is still wishing to use the two cashier model then it would also reduce the timings of the consumers by utilizing the services of the other cashier, when one cashier is busy in assisting the customers. From the case study, it is found that Shuzworld already know that a perfect registered transaction can take about five minutes to process every bit of the sale occurs specifically after a certain time period. From the analysis, it is found that the complete amount of time that a customer would spend within the checkout system would equate to 10 minutes for the one-cashier system as compared to the two-cashier system which equates to 5.33 minutes which is almost half the time.
Slide 36
In this task, it is required to decide which would be more economical, like, reconditioning their current equipment entirely for their production, purchasing of new equipments or outsourcing the equipments to China. From the Case Study, it is found that the element of Re-Conditioning has a total fixed cost of $ 50,000 with a variable cost of $ 1,000 for every 1000 sneaker based shoes produced. By contrast, the fixed cost of purchasing new equipment would be $ 200,000 with a variable cost of $ 500 for 1000 sneakers. There will be no fixed cost, if the company would outsource everything to China, but the variable cost would be $ 3,000 for every 1,000 snickers. POM method for Windows has been taken into consideration and found that the comparative breakeven volume of reconditioning and buying of new equipment is 300 units, while the comparative breakeven in reconditioning and outsourcing would be 25 units. Apart from this, the comparative breakeven volume of new equipment and outsourcing is 80 units
Slide 39
There are basically total four machine operators working with Shuzworld, who always taking care of their duties and making sure that all of their jobs are completed within the specific time frame. From the analysis, it is clear that operator 1 would be incurred the highest cost and in order to compute the most accurate cost in total, it is required to use the same module of POM for Windows, as it would give a larger picture in terms of cost efficiency and analysis. Referring to the below mentioned table for computing the total cost,
Slide 40
2 Full – time employees added every year for 3 years
Communication and transparency are good to use as tools for maintaining employees
The careful hiring of employees based on qualifications and fit into the environment will enhance the probabilities of retaining the new employees.
Slide 41
Benefits are a type of compensation that adds to the value of an employees pay
Pension Fund
Cafeteria Benefits
Group health insurance benefits
Enhance quality of life for employees by helping them balance their work with their family life
And enhance the health and reduce sick days by
