Exam 7: Constraint Management

Table 7.8 King Supply makes four different types of plumbing fixtures: W,X,Y and Z.The contribution margins for these products are: $70 for Product W,$60 for Product X,$90 for Product Y and $100 for Product Z.Fixed overhead is estimated at $5,500 per week.The manufacture of each fixture requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 70 Ws,60 Xs,50 Ys and 30 Zs. In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 7.8.Using the bottleneck method,what is the profit if Burdell manufactures the optimal product mix?

With TOC,________ are scheduled to maximize their throughput of products while adhering to promised completion dates.

Balance the line in order to achieve maximum output for this ten activity product.Determine the number of units produced in a seven hour work day and the total idle time in hours.

A mixed-model line produces several items belonging to the same family.

Table 7.9 Balance the following line for an output rate of 3 units per minute. -Use the information in Table 7.9.What is the balance delay for your solution?

Table 7.6 Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s. In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 7.6.Using the bottleneck method,what is the profit if Burdell manufactures the optimal product mix?

According to the Theory of Constraints,the four operational measures include inventory,throughput,delivery lead times and utilization.

Table 7.5 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table. Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 7.5.Using the traditional method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

Table 7.1 The figure above shows the call routing process for a customer service call center.Incoming calls are routed,depending on the complexity of the caller's request.Simple request are routed to work center B,while the more complex calls are routed to work center C (which also takes simple calls when not busy).The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Table 7.1.What is the 8-hour capacity for the process?

Table 7.8 King Supply makes four different types of plumbing fixtures: W,X,Y and Z.The contribution margins for these products are: $70 for Product W,$60 for Product X,$90 for Product Y and $100 for Product Z.Fixed overhead is estimated at $5,500 per week.The manufacture of each fixture requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 70 Ws,60 Xs,50 Ys and 30 Zs. In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 7.8.Using the bottleneck method,which product should be scheduled first?

Table 7.2 The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Table 7.2.What is the throughput time for the A-B-C-E process route?

Table 7.15 The Terminal Company is attempting to balance its assembly line of high-voltage electrical connectors.The desired output for the line is 50 connectors per hour,and the information on the work elements for this assembly line is as follows. -Use the information from Table 7.15 and the most efficient line balance possible.What work elements are included in the first station?

Table 7.3 The figure above shows the process for customers arriving at Pierre's Spa and Salon.After signing in,customers are routed to different locations in the Spa for the two different services provided.The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Table 7.3.What is the process bottleneck?

Table 7.13 The following information is given about an assembly line.The desired output rate is 90 units per hour. -Use the information in Table 7.13.Suppose that the desired output rate is increased to 120 units per hour and a solution has been found that has four workstations.What is the efficiency of this new assembly line?

Table 7.11 The Pennsylvania Appliance Company is installing an assembly line to produce vacuum cleaners,and you,as an operations manager,are responsible for balancing the line.The work elements to be performed are listed,along with their times and immediate predecessors. -Use the information in Table 7.11.The company is planning to operate 2 shifts per day,8 hours per shift.If the desired output rate of the line is 480 units per day,what is the cycle time?

Short term capacity planning should be driven by identification and management of bottlenecks.

The focus for a process improvement exercise should be on balancing:

Consider the process shown that is trying to produce to meet a market demand of 250 units per week. Step 1: Material release schedule Step 2: Drilling (capacity is 300 units/week)Step 3: Tapping (capacity is 150 units/week)Step 4: Grinding (capacity is 300 units/week)Step 5: Coating (capacity is 200 units/week)Step 6: Inspection (capacity is 500 units/week)a.Where should buffers be placed? b.Which resource is the drum? c.Where should the rope be placed? d.Which resource is the bottleneck? e.Which resource is the CCR?

Use the process flow diagram to determine which of these events has the greatest net benefit.

The final step in applying the Theory of Constraints is to repeat the first four steps.