STONEHAVEN

STONEHAVEN

1.0 What are the daily capacities and Manufacturing

Lead Time of Cutting,
Cutting Stitching and Lasting
Department considering a
100 pair
i batch
b t h
10 pair batch?
CUTTING DEPARTMENT

100 pair batch

Capacity, CT and MLT
 CUTTING DEPARTMENT

100 pair batch Cutting Shoe leather

4* (5.25
4 (5 25 + 100
100*0
0.05)
05) = 41
minutes

Leathe Cut Linings

rSheets
4* (5.00 + 100*0.05) = 40
minutes

Cut insole
4* (4
(4.00
00 + 100*0.04)
100*0 04) = 32
minutes

There are three parallel operations,

operations each of which cuts 100 of four different Shoe
components (creating 1200 pieces in 100 pair batch), each of which requires
Four die changes
 CUTTING DEPARTMENT

100 pair batch Cutting Shoe leather

4* (5.25
4 (5 25 + 100
100*0
0.05)
05) = 41
minutes

Leathe Cut Linings

rSheets
4* (5.00 + 100*0.05) = 40
minutes

Cut insole
4* (4
(4.00
00 + 100*0.04)
100*0 04) = 32
minutes

Capacity = 480/41 = 11.7

11 7 batches = 1170 pairs of shoe per shift
MLT = 41 minutes. Cycle time = 41 minutes
CUTTING DEPARTMENT

10 pair batch
Capacity, CT and MLT
 CUTTING DEPARTMENT

10 pair batch Cutting Shoe leather

4* (5.25
4 (5 25 + 10 * 0.05)
0 05) =
23 minutes

Leathe Cut Linings

rSheets
4* (5.00 + 10 * 0.05) = 22
minutes

Cut insole
4* (4
(4.00
00 + 10 * 0.04)
0 04) =
17.6 minutes

Capacity = 480/23 = 20.9

20 9 batches = 209 pairs of shoe per shift
MLT = 23 minutes. Cycle Time = 23 minutes
 CUTTING DEPARTMENT

While changing from a 100 pair batch to a 10 pair

batch the MLT declines 44 %,
batch, % but the capacity
declines a whooping 82 % - function of the setups,
y long
which are relatively g compared
p to the run times?
STITCHING DEPARTMENT
 STITCHING DEPARTMENT

Despite the strange back and forth flow of baskets to

and from workers and supervisors in stitching,
stitching this is
a classic worker-paced line, with operations in
q
sequence.
STITCHING DEPARTMENT

100 pair batch

Capacity, CT and MLT
 STITCHING DEPARTMENT

100 pair batch

Prefit Joining Ornament

4 workers
k 3 workers
k 2 workers
k

Time/pair 5 min 3 min 2.5 min

Task Time 500 mins 300 mins 250 mins

Operation 500/4= 300/3= 250/2=

Cycle Time 125 mins 100 mins 125 mins
 STITCHING DEPARTMENT

100 pair batch

Prefit Joining Ornament

4 workers 3 workers 2 workers

Task Time 500 mins 300 mins 250 mins

Operation 500/4 300/3 250/2

Cycle Time 125 mins 100 mins 125 mins

Cycle Time for the department is 125 minutes

p y is 480 / 125 = 3.84 batches = 384 shoes pper shift
The Capacity
 STITCHING DEPARTMENT

100 pair batch

What is the Manufacturing Lead Time?

 STITCHING DEPARTMENT

100 pair batch

What is the Manufacturing Lead Time?

Use Little’s Law

Little’s Law
Manufacturing Lead Time = Work in Process * Cycle Time
 STITCHING DEPARTMENT

100 pair batch

Prefit Joining Ornament

4 workers 3 workers 2 workers

Task Time 500 mins 300 mins 250 mins

Operation 500/4 300/3 250/2

Cycle Time 125 mins 100 mins 125 mins

Manufacturing Lead Time: Easy way is to use Little’s Law

WIP = 9 workers each with 2 batches ((one in pprocess and one as buffer)) = 18 batches

MLT = 18 batches * 125 mins = 2250 minutes

 STITCHING DEPARTMENT

10 pair batch

10 pair batch
Capacity, CT and MLT
 STITCHING DEPARTMENT

10 pair batch

Prefit Joining Ornament

4 workers 3 workers 2 workers

Task Time 50 mins 30 mins 25 mins

Operation 50/4 30/3 25/2

Cycle Time 12.5 mins 10 mins 12.5 mins

Cycle Time for the department is 12.5 minutes

p y is 480 / 12.5 = 38.4 batches = 384 shoes pper shift
The Capacity
 STITCHING DEPARTMENT

10 pair batch

Prefit Joining Ornament

4 workers 3 workers 2 workers

Task Time 50 mins 30 mins 25 mins

Operation 50/4 30/3 25/2

Cycle Time 12.5 mins 10 mins 12.5 mins

Manufacturing Lead Time: Easy way is to use Little’s Law

WIP = 9 workers with 2 batches ((one being
g worked on and one as buffer)) = 18 batches

MLT = 18 batches * 12.5 mins = 225 minutes

 STITCHING DEPARTMENT

With batches of ten pairs, cycle time drops to 12.5

minutes and the capacity remains unchanged at 384
minutes,
pairs of shoes.
As a result
A lt off no setups
t required
i d for
f a new batch,
b t h
the capacity remains unchanged when batch sizes
are reduced.
reduced However a 90% reduction in batch size
leads to a 90% cut in MLT
LASTING DEPARTMENT
LASTING DEPARTMENT

100 pair batch

Capacity and MLT
 LASTING DEPARTMENT

100 pair batch

Cement Inspect &

Staple Sole Seat Lasts Rough Sole
Sole Pack
0.7 mins 0.6 mins 1.0 mins
0 9 mins
0.9 0 3 mins
0.3

Cycle
y Time is one minute perp ppair, driven by
y the Bottleneck “Rough
g Sole”
The conveyor belt must be paced at one minute per operation.

First pair comes out at 5 minutes ( 1 min each for the 5 operations)
The second pair comes off the line at 6 minutes, the third at 7 mins (“cycle time”)
((n + 4) mins, where n = batch number)

Thus the
Th th MLT for
f the
th batch
b t h off 100 pairs
i isi 104 minutes
i t (100 + 4)
With one batch allowed at one time, the Capacity is 480 / 104=4.62 batches=462 shoes
LASTING DEPARTMENT

10 pair batch
Capacity CT and MLT
Capacity,
 LASTING DEPARTMENT

10 pair batch

Cement Inspect &

Staple Sole Seat Lasts Rough Sole
Sole Pack
0.7 mins 0.6 mins 1.0 mins
0 9 mins
0.9 0 3 mins
0.3

Cycle
y Time is one minute perp ppair, driven by
y the Bottleneck “Rough
g Sole”
The conveyor belt must be paced at one minute per operation.

First pair comes out at 5 minutes ( 1 min each for the 5 operations)
The second pair comes off the line at 6 minutes, the third at 7 mins (“cycle time”)
((n + 4) mins, where n = batch number)

Thus the
Th th MLT for
f the
th batch
b t h off 10 pairs
i isi 14 minutes
i t (10 + 4)
With one batch allowed at one time, the Capacity is 480 / 14=34.3 batches=343 shoes
 LASTING DEPARTMENT

Effect of the of policy of allowing only one batch in the Department

Cement Inspect &

Staple Sole Seat Lasts Rough Sole
Sole Pack
0.7 mins 0.6 mins 1.0 mins
0 9 mins
0.9 0 3 mins
0.3

Since one batch is allowed at one time, there will be a time at the end of the batch when
the beginning of the operations in the conveyor are idle.
 LASTING DEPARTMENT
Minute by Minute snapshot of the Shoe Assembly line from T=99 to 103

10
Staple Sole Seat Last Rough Sole Cement Inspect &
99 98 97 96
0 Sole Pack

Staple Sole Seat10Lasts Rough

99 Sole Cement Inspect &
0 98 97
IDLE 1.0 mins Sole Pack

Staple Sole Seat Lasts Rough

10 Sole Cement Inspect &
99 98
IDLE IDLE 1.0
.0 0minss Solee
So Pack
ac

Staple Sole Seat Lasts Rough Sole Cement

10 Inspect
99 &
IDLE IDLE IDLE Sole
0 Pack

Staple Sole Seat Lasts Rough Sole Cement Inspect

10 &
IDLE IDLE IDLE IDLE Pack
0

Legend 96 Shoe : 96th shoe in a batch of 100

 LASTING DEPARTMENT

This is not much an issue for large batches (100 pair)

For example, Station 1 is idle for 4/104 % = 3.8%

For small batches, this is an issue (10 pair)

For example, Station 1 is idle for 4/14% = 28.5%

This will be significant, if Lasting Department is the

Bottleneck of the entire shop
THE ENTIRE FACTORY’S CAPACITY
 THE ENTIRE FACTORY’S CAPACITY

Department 100 pair batch 10 pair batch

Cap CT MLT Cap CT MLT

Cutting 1170 41 41 209 23 23

Stitching 384 125 2250 384 12.5 225

Lasting 462 104 104 343 14 14

MLT, CT in minutes and Capacity in no of Shoes

 THE ENTIRE FACTORY’S CAPACITY

100 pair batch

The Operating System is constrained by the lowest or

Slowest capacity operation, this is Stitching
Hence it is 3.84
Hence, 3 84 batches or 384 shoes

The steamer
steamer’ss six hours does not enter into calculations
The case states it has ‘significant excess capacity’
THE ENTIRE FACTORY’S MLT
 THE ENTIRE FACTORY’S MLT

What is the Manufacturing Lead Time?

Use Little’s Law

Little’s Law
Manufacturing Lead Time = Work in Process * Cycle Time
 THE ENTIRE FACTORY’S MLT

Use Little’s law

Each department
p cannot run at its own maximum speed
p
Every department must run on a 125 minute cycle

It would be physically impossible for the product to

Flow at different ((average)
g ) rates in different depts
p for
Long.

Hence, we need to consider the system as a whole

 THE ENTIRE FACTORY’S MLT

100 pair batch

All figs in # of batches

Use Little’s law

20 2 6 6 4 8
Leather Cutting Kitting Stitching Steaming Lasting FG
WIP
Within 1 1 18 3 1
Depts

WIP bbefore
f and
d after
ft departments
d t t : Table
T bl 2 off Case,
C
WIP within department from Case facts, except for Steaming (not given)

If batches are required to be in steamer for 6 hours,

hours then there must be
((6 * 60)/ 125) = 3 batches inside the Steamer at any time (assumed)
 THE ENTIRE FACTORY’S MLT

100 pair batch

All figs in # of batches

Use Little’s law

20 2 6 6 4 8
L th
Leather C tti
Cutting Kitti
Kitting Stit hi
Stitching St
Steaming
i L ti
Lasting FG
WIP
Within 1 1 18 3 1
Depts

WIP = 1 + 2 + 1 + 6 + 18 + 6 + 3 + 4 + 1 = 42 batches (100 pair)

MLT = 42 * 125 = 5250 mins = 87.5 hours = 11 days
y

We ignored WIP of Leather and FG.

Normally, WIP should not include Raw Material Inv and FG as they are not WIP
In the case it is an MTO co, Raw Matl is procured on receipt of order and hence
has to wait before the 20 batches, then we need to add 20 in the WIP
THE APPROPRIATE BATCH SIZE FOR THE
STONEHAVEN
 THE APPROPRIATE BATCH SIZE

In Cutting,
g we have significant
g excess capacity
p y when
Batches are set at 100 pairs.
g capacity
Thus, if we cut down on batch size, Cutting’s p y
Will reduce, but NOT the System’s Capacity

Let B be the batch size

4*5.25 + 4*0.05*B = 1.25*B

Solving for B, we get B = 20 pairs
With batch size below 20, system loses CAPACITY
 THE APPROPRIATE BATCH SIZE

As we change batches
batches, MLT and Cycle time gets
affected

400

Cap

0
0 10 20 30 40 50 60 70 80 90
Batch Size
 THE APPROPRIATE BATCH SIZE

As we change batches
batches, MLT and Cycle time gets
affected

9000

MLT

1000
0 10 20 30 40 50 60 70 80 90
Batch Size
 THE APPROPRIATE BATCH SIZE

Small Batch Big Batch

Flexibility to Product Variety
High Material Handling
Information flow will be
excessive
Easier to Spot Quality
Problems: Tracing easy
Less repetition, leading to
lower efficiency. “ Learning
P lt ”
Penalty”
Inflexible
Low Material Handling
Information flow simpler
Quality problems detected
later
Greater repetition enabling
use of learning curve:
greater
t efficiency
ffi i
 THE APPROPRIATE BATCH SIZE

For reasons of ease of Information Flow, material

Handling and to avoid a ‘learning penalty, it would be
p the batch size at 20 pairs
Best to keep p
THE TOP PRIORITIES
 THE TOP PRIORITIES

What would be the priorities for improvement?

 THE TOP PRIORITIES

¾Reducing Manufacturing Lead Time

¾Cut batch size to 20,

20 retaining capacity

¾The shoes are transported trans-Atlantic

trans Atlantic by
Ships, taking weeks, would it make sense
saving a few days at the plant ??
 THE TOP PRIORITIES

¾Push to Pull might reduce WIP also ?

¾Line Balancing how? Why not?

 STITCHING DEPARTMENT

Paced Line: parts moving through a Conveyor.

The Bottleneck of such a line is not the slowest
station but the line-moving
g mechanism.

In Flow lines, stations are essentially independent.

Balancing is more relevant to paced lines than flow.

This is because of HR issues of fairness and
capacity can be increased in fine increments
 LINE BALANCING

Rough Sole Making the Conveyor

1 0 mins
1.0 U Shaped, makes
Line balancing
Easier.
Seat Lasts Cement
The triangle is a
0 6 mins
0.6 i Sole
Cell
0.9 mins

IInspectt &
Staple Sole
Pack
0.7 mins
0.3 mins
 LINE BALANCING – WHY NOT?

24

22

20

18

16
Cycle Time (hrs)

14

12
High
10
Variability
8

6
Low
4 Variability
Capacity
2

0
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2
Release Rate (entities/hr)
 LINE BALANCING – WHY NOT?

Non linear increase after 80% utilization

MLT

0 80 100
Utilization
 TOOLS AND TECHNIQUES

What if you were the visitors to this plant and not

US students?
How would you collect this information?
 TOOLS AND TECHNIQUES

T tools
Two t l which
hi h help
h l us “to
“t see””
“Learning to see” tools

Rapid Plant Assessment (RPA)

V l Stream
Value St Mapping
M i (VSM)
Staple yourself to an Order