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# STONEHAVEN

STONEHAVEN

## 1.0 What are the daily capacities and Manufacturing

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

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

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

4 workers
k 3 workers
k 2 workers
k

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

Cycle Time 125 mins 100 mins 125 mins
STITCHING DEPARTMENT

## Prefit Joining Ornament

4 workers 3 workers 2 workers

## 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

## What is the Manufacturing Lead Time?

STITCHING DEPARTMENT

## Use Little’s Law

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

## Prefit Joining Ornament

4 workers 3 workers 2 workers

## 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

## 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

## 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

## 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

## 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

## MLT, CT in minutes and Capacity in no of Shoes

THE ENTIRE FACTORY’S CAPACITY

## 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

## 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

## 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 Inflexible
High Material Handling Low Material Handling
Information flow will be Information flow simpler
excessive
Easier to Spot Quality Quality problems detected
Problems: Tracing easy later
Less repetition, leading to Greater repetition enabling
lower efficiency. “ Learning use of learning curve:
P lt ”
Penalty” 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

## 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

## 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.

## 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