Table Basic Data Review for Construction Project Equipment A

Table: Basic Data Review for Construction Project Equipment Arrangement

Cycle Time (hours)

Step

Description

Actual

Potential

Difference

1

Read basic data package

4

4

—

2

Write, type, proof, sign, copy, and distribute cover letter

21.9

0.5

21.4

3

Queue

40

0

40

4

Lead engineer calls key people to schedule meeting

4

0.25

3.75

5

Write, type, proof, sign, copy, and distribute confirmation letter

25.4

2.1

23.3

6

Hold meeting; develop path forward and concerns

4

4

—

7

Project leader and specialist develop missing information

12

12

—

8

Determine plant preferred vendors

12

12

—

9

Review notes from meeting

12

12

—

10

Resolve open issues

106

104

2

11

Write, type, proof, sign, copy, and distribute basic data acceptance letter

26.5

0.25

26.25

Totals

267.8

151.1

116.7

Use the data in the table above and answer the following questions in the space provided below:

What are the sources of value-added and non-value-added work in this process?

Where are the main opportunities to improve the cycle time of this process, with respect to both actual time used and the potential best times? What strategy would you use?

Step 10: Resolve Open Issues required 104 hours (potential) versus 106 hours (actual). Is there an OFI here? Why or why not? If so, how would you attack it?

What do you think are the most difficult critical issues to deal with when designing a sound cycle time study such as this one?

			Cycle Time (hours)
Step	Description	Actual	Potential	Difference
1	Read basic data package	4	4	—
2	Write, type, proof, sign, copy, and distribute cover letter	21.9	0.5	21.4
3	Queue	40	0	40
4	Lead engineer calls key people to schedule meeting	4	0.25	3.75
5	Write, type, proof, sign, copy, and distribute confirmation letter	25.4	2.1	23.3
6	Hold meeting; develop path forward and concerns	4	4	—
7	Project leader and specialist develop missing information	12	12	—
8	Determine plant preferred vendors	12	12	—
9	Review notes from meeting	12	12	—
10	Resolve open issues	106	104	2
11	Write, type, proof, sign, copy, and distribute basic data acceptance letter	26.5	0.25	26.25
	Totals	267.8	151.1	116.7

Solution

1)
Value- added are 1, 6, 7, 8, and 9 Non-value-added are 2, 3, 4, 5, 10, and 11

2)
if we cut the time for all tasks it would help. Keeping the teams on track and focused are the main key.

3)
Yes, there is an OFI. If you keep the teams on task and focused it would be a huge OFI. Overestimating is going to happen but if you are prepared and on track you can cut the times down or maybe in half.

4)
The biggest issues would be to accurately manage both value-added and non-value-added work. Apportioning the time it takes for each step and re-apportioning the time when needed seems to be the challenge