PSG Exercises Round 2

1
PSG Exercises - Round 2

• TU-22.1176 Operations Management
• February 1, 2006
• Group 11
• Jossas, Koskinen, Laukkanen

2
Exercise 2a

• Setting
• Setup times on the SMD machine to a quarter of
  the original (KS 0,25)
• Default simulation findings
• Uncompleted orders 27
• Delivery accuracy 25
• SMD setup time usage 27
• Primary Tester for MB 16
• Financials
• Labor cost EUR 16 000,00
• Inventory cost EUR 408,70
• Result- -7,9

3
Exercise 2a

• Problems solutions
• Labor resource bottlenecks
• ? increase amount of labor, especially at
  nights and weekends
• Late deliveries
• ? re-priorization of orders by delivery date
• Long setup times
• ? enlarge kanban lotsize for MB (20 ? 25) to
  decrease setup-times

4
Exercise 2a

• Achieved solution (scenario number 8)
• Delivery Accuracy 100 ( 75 )
• SMD, setup-time 3 (- 24 )
• Primary Tester for MB, setup-time 10 (- 6 )
• Achieved financial results
• Labor cost EUR 40 704,00 ( 24 704)
• Inventory cost EUR 483,30 ( 74,60)
• Result EUR 59 287,70
• Result- 12,9
• 1a financial result 10,3
• reducing the setup time of SMD to 0,25 developed
  the utilization of the employees ? improved
  financial result

5
Exercise 2b

• Setting
• Increase the number of burn-in ovens to 2
• Decrease setup time (KS) on mother board tester
  (MB) from 1.0 to 0.25
• Default simulation findings
• Uncompleted orders 41
• Delivery accuracy 27
• SMD setup time usage 6
• Primary Tester for MB 16
• Financials
• Labor cost EUR 16 000,00
• Inventory cost EUR 430,70
• Result- -7,9

6
Exercise 2b

• Problems solutions
• Labor resource bottlenecks
• ? increase amount of labor, especially at
  nights and weekends (again)
• Late deliveries
• ? re-priorization of orders by delivery date
  (again)
• Long setup times
• ? enlarge kanban lotsize for DB1 (20 ? 24) to
  decrease setup-times
• High inventory cost
• ? Decrease kanban lotsize of MB (20 ? 14)
• The most effective way to improve results is to
  increase the number of employees ? reduced setup
  times and no late deliveries

7
Exercise 2b

• Achieved solution (scenario number 20)
• Delivery Accuracy 100 ( 75 )
• SMD, setup-time 5 (- 1 )
• Primary Tester for MB 7 (- 9 )
• Achieved financial results
• Labor cost EUR 34 560,00
• Inventory cost EUR 450,40
• Result EUR 63 064,60
• Result- 13,8
• Comparison between 1, 2a and 2b
• The best result was achieved in 2b because of
  number of the ovens and the most fine
  adjustmented kanban optimizations ? idle time
  reduction

8
Exercise 2c

• Setting
• Demand setup base_low
• Setup times on the SMD machine and on the MB
  tester to a quarter of the original (KS 0,25)
• 2 kanban cards and 40 cards sizes 40 for every
  module
• Default simulation findings
• Uncompleted orders 0
• Delivery accuracy 60
• SMD setup time usage 2
• Primary Tester for MB 2
• Financials
• Labor cost EUR 16 000,00
• Inventory cost EUR 533,70
• Result EUR 15 311,30
• Result- 4,5

9
Exercise 2c

• Problems solutions
• Lower demand ? lower number of employees
• Decreased Kanban sizes (40 ? 13/10)
• Setup times rise
• Comparison between 2b and 2c
• Lower demand ? harder to affect to the assembly
  line and its efficiency
• Lower demand reduces the profits of the line ??
  the production line has capacity to handle larger
  demand
• Also lower number of employees needed

10
Exercise 2c

• Achieved solution (scenario number 35)
• Delivery Accuracy 97 ( 37 )
• SMD, setup-time 7 ( 5 )
• Primary Tester for MB 13 ( 11 )
• Achieved financial results
• Labor cost EUR 12 352,00
• Inventory cost EUR 275,10
• Result EUR 27 172,90
• Result- 8,1

11
Exercise 2d

• Setting
• 2 MB testers
• MB tester setup time to 0,1
• SMD production speed to 2,0
• SMD setup time to 2,0
• Default simulation findings
• Uncompleted orders 19
• Delivery accuracy 36
• SMD setup time usage 7
• Primary Tester for MB 4
• Financials
• Labor cost EUR 16 000,00
• Inventory cost EUR 428,50
• Result EUR 1 266,50
• Result- 0,4

12
Exercise 2d

• Second setting (after the first optimizations)
• SMD setup time to 0,25
• Default second simulation findings
• Uncompleted orders 28
• Delivery accuracy 29
• SMD setup time usage 6
• Primary Tester for MB 2
• Second financials
• Labor cost EUR 16 000,00
• Inventory cost EUR 231,20
• Result EUR -25 076,20
• Result- -10,2

13
Exercise 2d

• Problems solutions (simulation part 1)
• Idle time for SMD 1, very good
• With Kanban cards you can affect the setup times
  and then the effiency of the whole line
• Problems solutions (simulation part 2)
• Need for SMD idle time reduction
• Our idle time 17 ? not as good as in the first
  part of 2d
• Addition of workers in the beginning of the week
  and the Kanban card size changes didnt change
  the result as we wanted ? we couldnt find the
  final cue

14
Exercise 2d

• Achieved solution (scenario number 50, simulation
  1)
• Delivery Accuracy 100 ( 64 )
• SMD, setup-time 21 ( 14 )
• Primary Tester for MB 1 (- 3 )
• Achieved financial results
• Labor cost EUR 31 296,00
• Inventory cost EUR 486,60
• Result EUR 63 092,40
• Result- 13,8

15
Exercise 2d

• Achieved solution (scenario number 60, simulation
  2)
• Delivery Accuracy 100 ( 71 )
• SMD, setup-time 2 (- 4 )
• Primary Tester for MB 1 (- 1 )
• Achieved financial results
• Labor cost EUR 23 232,00
• Inventory cost EUR 643,30
• Result EUR 70 999,70
• Result- 15,5

16
Summary

• The whole production line is very ineffective
• low utilization of almost all machines
• Higher volume means higher profits
• Self estimation, considering the upcoming
  sessions
• Need for better analyze of data and more thinking
  ? save of time and work