Metal frames for kick scooters are manufactured in two steps

Metal frames for kick scooters are manufactured in two steps: Stamping and assembly. Each frame is made up of three pieces: one unit of part A and two units of part B.

The parts are fabricated by a single stamping machine that requires a set up time of 90 minutes switching between two part types. Once the machine is set up, the activity time for parts, regardless of type, is 30 seconds each piece. Currently, the stamping machine rotates its production between one batch of 120 part A’s and 240 part B’s. Completed parts move only when the entire batch is produced.

At assembly, parts are assembled manually to form the finished products. The three parts and a number of small purchased components are required for each unit of final product. Each product requires 30 minutes of labor time to assemble. There are 12 workers in assembly. There is sufficient demand to sell every scooter the system can make.

At the current batch sizes, what is the process capacity in units per hour? Choose the answer below that is closest to the correct answer. A unit refers to a complete scooter frame (i.e. one part A and two parts B)

1 unit/ hr

5 units/ hr

10 units/ hr

20 units/ hr

24 units/ hr

30 units/ hr

40 units/ hr

One way to increase process capacity is to:

Increase the batch size at the stamping step

Decrease the batch size at the stamping step

Add more workers at assembly

None of the above

Which choice of batch sizes would minimize inventory and maximize flow rate?

Batch size = 60 for A; Batch size=120 for B

Batch size = 120 for A; Batch size=240 for B

Batch size = 180 for A; Batch size=360 for B

Batch size = 240 for A; Batch size=480 for B

Batch size = 300 for A; Batch size=600 for B

PLEASE SHOW YOUR WORK FOR HOW YOU GET YOUR ANSWER. THANKS!

Solution

1. 10 unit / hour

2. Increase the batch size at the stamping step

3. Batch size = 300 for A; Batch size=600 for B