Grunfeld Industries is a producer of electronics High end di

Grunfeld Industries is a producer of electronics. High end digital surround sound receivers are a particular problem as customer demand is volatile but predictible in the short-term. It is relatively independent of economic conditions due to its high end nature. There are five separate models produced: WM100; WM510; RC100; RC510; RC710 (from low-end to high end) The retail pricing is $250, $375; $325; $450 and $650 respectively. For the next month, Sales and marketing has forecasted the following demand from distributors and retailers: WM100 220 WM510 80 RC100 128 RC510 72 RC710 60 The department producing the receivers operates five days per week on a single shift. Partial assemblies are not permitted. 510 and 710 series models are similar assembly but different from 100 models This particular line produces at a rate of 4 jobs per hour. There are an average of 20 work days per month. Engineering has advised that each shift must have at least 2 cycles to allow to allow for preventive maintenance. Manufacturing has advised that, per contract, lunch is 30 minutes and 2 15 minute breaks are given per shift. Design cycles and units per cycle (a work schedule) for receivers, maximizing levelness and balance, with minimal excess inventory Calculate the TAKT time What adjustments, if any, will have to eventually be make to your plan, if the forecast is 100% accurate?

Solution

1> Design Cycle

Assuming that each shift is an 8 hour shift.

As per manufacturing 30 minutes is for lunch and 2 15-minutes break is a mandate as well.

=> the 8 hour shift now becomes a 7 hour job.

Engineering has advices 2 breaks for mainenance

in order to take time out from the remaining 7 hours , we could plan these maintenance breaks abound the time when the workers are at break as then will not be on the floor and these breaks could last for 15 minutes each.

In 1 hour the line produces 4 units

=>In seven hours they will produce = 4*7 = 28 units

so in 1 month units produced = 28*20 = 560

Now according to the forecasting made by sales total demand for units is

= 220+ 80 + 128 + 72 + 60 = 560

so we\'ll be short of = 560

so we could see that working for 7 hours for 20 days with no over time we could meet the forecast for the next month.