airplane simulation analysis anno 2014/2015
TRANSCRIPT
Airplane Simulation Analysis
Sustainable Operations Management
Anno Accademico 2014/2015
Università Commerciale Luigi Bocconi
Emanuele Marfisi
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Sup
plie
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Clie
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The lay-out: Four Steps
Airplane Simulation Analysis – Assignment 01 2
Operator 1 Draws two diagonal lines on both sides of the paper with the color required by the client. Then he/she folds the paper in half length-wise.
Operator 2 Opens the paper and folds 2 points to the centre-line. Then he/she folds the pointed end down and folds the paper back in half again. Then he/she tears off a square corner of the folded paper.
Operator 3 Opens the paper and folds two corners to the centre. Then he/she folds the first corner through the tear that was made by operator 2 and folds the paper in half again.
Operator 4 Folds the two sides down to form the final wings.
Fold in half
Open Paper
Airplane Simulation Analysis – Assignment 01
Normal Work
1
Step One
3
Operator 1: draws two diagonal lines on both sides of the paper with the color required by the client. Then he/she folds the paper in half length-wise.
1. There is no communication between steps about choosing which colour to use.
2. The quality of work is lower due to not using right tools (ruler).
3. This step needs too much time to be completed.
Step One
!?!
!?! Zzz..
Airplane Simulation Analysis – Assignment 01
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1
PRO
BLE
MS
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1. Add another step at the end of the 4° operator’s work, in which the worker, after having
received the order from clients, chooses the right colours.
2. In order to rebalance the charge of the first operator’s work, add another two steps, as
we can see from the picture below.
SOLU
TIO
NSStep One
Airplane Simulation Analysis – Assignment 01
1
NOT IN MY COMPETENCE
Fold point down
5
Fold 2 corners to center
New Operations
Fold in half Open Paper
Step Two
2
Normal Work
Fold 2 corners to center
Fold point down
Fold paper in half
Tears off a square corner
Airplane Simulation Analysis – Assignment 01 6
Operator 2: opens the paper and folds 2 points to the centre-line. Then he/she folds the pointed end down and folds the paper back in half again. Then he/she tears off a square corner of the folded paper.
1. This step is the bottleneck of the supply chain.
2. Using fingers to cut paper is a waste of time and is hard to do.
3. The quality is low because of not having the right tools.
4. This step requires most of the time available.
5. This is the only step that produces a lot of scraps.
Step Two
Airplane Simulation Analysis – Assignment 01
Recycle it !Bottle Neck Time
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PRO
BLE
MS
1. In order to reduce time, improve quality and try to eliminate the bottleneck,
use scissors.
2. The best way to reduce scraps is to introduce a Recycling System.
Step Two
Airplane Simulation Analysis – Assignment 01
2
Recycle it !
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SOLU
TIO
NS
Step Three
3
Normal Work
Airplane Simulation Analysis – Assignment 01
Fold corners down to center
Fold original corner up through cut slot
Fold paper in half
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Operator 3: Opens the paper and folds two corners to the centre. Then he/she folds the first corner through the tear that was made by operator 2 and folds the paper in half again.
The most relevant problem of this step is waiting time caused by the bottleneck.
Step Three
Airplane Simulation Analysis – Assignment 0110
PRO
BLE
MS
Step Three
This step’s problem can be solved by the introduction of scissors.
Airplane Simulation Analysis – Assignment 01
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SOLU
TIO
NS
Step Four
Airplane Simulation Analysis – Assignment 01
Normal Work
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Fold half of paper along line to form wing
Turn paper over
Fold along line to form and wing
Airplane is finished. 12
Operator 4: Folds the two sides down to form the final wings.
1. Work is not balanced because, compared to the other workers, operator 4 doesn’t
have very many steps to do.
2. Another problem is the waiting time due to the original bottleneck.
3. There is bad management of the pallets (plastic bags) and bad comunication between
the first and the last operators.
Step Four
Airplane Simulation Analysis – Assignment 0113
PRO
BLE
MS
1. Add another step at the end of the 4° operator’s work, in which the worker, after having
received the order from the client, chooses the right colours.
2. Improve comunication to solve the pallet problem with better coordination between the
steps.
Step Four
Airplane Simulation Analysis – Assignment 01
Client4
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SOLU
TIO
NS
Airplane Simulation Analysis – Assignment 0115
1. Profit improvement.
2. Quality improvement.
3. Time reduction.
4. Colour waste reduction.
The Advantages of Solutions that we have Intorduced
With our solutions we have changed the standard model of “make to stock” into a hybrid model
between “make to stock” and “make to order”. Specifically, we have the advantages of the “make
to stock” model such as production of basic paper airplanes and the benefits of the “make to
order” model, where we can personalize the products at the end of the supply chain after having
received the customer’s order.
Money $$$
Paint Paint
Paint
Money $$$
Money
• TIMEWe have measured the time that each operator uses to perform the task for 4 airplanes (1 batch). Then, we have
added the times obtained.
We have subtracted the result that we obtained with the Peppa Pig aircraft (4’ 34’’) with the sum shown above (3’40’’). The result obtained is the time that elapses to move the batch during all the process, from the firststation to the last one.
Then, we have calculated how long take to build all airplanes. In reality, we had 4 airplanes in the warehouse,and we were able to produce only 12 airplanes in 3 weeks (3 batches). The total production was 12 + 4 = 16
airplanes in 3 weeks. Client’s demand was of 16 airplanes per week, and total demand was of 48 airplanes per3 weeks. It was not possible to satisfy all the client’s demand!
TIME TO BUILD 12 AIRCRAFTS: 4’ 34’’ x 3 = 13’ 42’’ à almost 3 weeks
OPERATOR 1 OPERATOR 2 OPERATOR 3 OPERATOR 4 SUM
1’ 02‘’ 1’ 07’’ 47’’ 44’’ 3’ 40’’
Benefits – before our improvements
TIME SAVED (in 3 weeks): (5’ x 3) – 13’ 42’’ = 1’ 18’’
WEEKS: 15’ / 1’ 18’’ = about 12 weeks à every 12 weeks we increase the production of 1 batch.
Airplane Simulation Analysis – Assignment 0116
TIME TO MOVE 4 AIRCRAFTS: 4’ 34’’ – 3’ 40’’ = 54’’
After, we have calculated the time that we have to build aircrafts for three weeks (5’ x 3) subtracting the time thatwe use to produce 3 batches. In total we have saved 1 minute and 18 seconds every 3 weeks, this means that in 12weeks we have increased the production of 1 batch (4 airplanes).
• PROFIT
To calcolate the profit we have made the hypothesis that every 4 airplanes completed we have sold only3 airplanes, because the color of the airplane unsold is not in line with customer’s demand.
In more detail we have sold 9/12 airplanes of our production + 3/4 airplanes from the warehouse.
TOTAL AIRPLANES SOLD: 3 x 3 = 9 (our production) à 9 + 3 (from warehouse) = 12
PRICE PER UNIT 1 €
COST PER UNIT 0.8 €
TOTAL REVENUE 12 €
VARIABLE COSTS - 9.6 €
MARGIN CONTRIBUTION 2.4 €
FIXED COSTS 0 €
EBIT 2.4 €
Airplane Simulation Analysis – Assignment 0117
Benefits – before our improvements
Airplane Simulation Analysis – Assignment 01
• TIME
At this point, we have tried to standardize the time spent at each station by changing the subdivision of labor
and introducing scissors.OPERATOR
1OPERATOR
2OPERATOR
3OPERATOR
4SUM
52’’ 51’’ 49’’ 48’’ 3’ 20’’
TIME TO WORK + TIME TO MOVE: 3’ 20‘’ + 54’’ = 4’ 14”
In these estimates, we have also considered the economies of experience, which will reduce the time that eachoperator must use to fulfill their duties.We have calculated the time saved through the enhancements compared to the normal situation:
TOTAL TIME SAVED: 4‘ 34“ - 4‘ 14" = 20“ per week
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Repeating the reasoning shown in the previous slide:
TIME TO BUILD 12 Aircrafts: 4‘ 14” x 3 = 12' 42”
TIME SAVED (in 3 weeks): (5’ x 3) - 12' 42'' = 2 ’ 18’’WEEKS: 15’ / 2’ 18'' = about 6 weeksà about every 6 weeks we increase the production of 1 batch.
We can also consider that we can improve more the production with economies of experience on time to move
aircrafts, for example we can reduced its from 54’’ to 50’’ or 48’’.In comparison from after to before our process’ modifications we have improved the result from 12 weeks toabout 6 weeks to increase the production of 1 batch. In long term will be a good advantage.
Benefits – after our improvements
• PROFITTo calcolate the profit we have made the hypothesis of total sell of all the 4 airplanes that we produced, because we
have introduced the coloring step after customer demand. With this improvement there is any unsold aircraft due to
colour problem.
PRICE PER UNIT 1 €
COST PER UNIT 0.8 €
TOTAL REVENUE 16 €
VARIABLE COSTS - 12.8 €
MARGIN CONTRIBUTION 3.2 €
FIXED COSTS 0 €
EBIT 3.2 €
Ø For more precision, we should consider scissors as a machine andtherefore we should introduce it in fixed costs and amortize each year. Wehave seen that a pair of good scissors cost about 10 € on average, but not
knowing how many years we should amortize it, we decide to avoid writeit. Also it is not a relevant cost, because the usury is not so big, and inconsequence the lifetime of scissor will be so long. à Irrelevant cost
Ø We can also consider that we can improve more EBIT and PROFIT’S resultwith economies of experience on time to move aircrafts, for example wecan reduced its from 54’’ to 50’’ or 48’’.
• QUALITYThe introduction of scissors in the production process has increased the quality of the product and reduced waste.
This increase in quality could raise the sell price, for example from 1 € per unit to 1.1 € per unit.
Airplane Simulation Analysis – Assignment 0119
TOTAL AIRPLANES SOLD: 4 x 3 = 12 (our production) à 12 + 4 (from warehouse) = 16
Benefits – after our improvements
Comparison of the Results STANDARD WORK IMPROVED WORK
TOTAL OPERATORS’ WORK TIME 3’ 40’’ 3’ 20’’
TIME FOR AICRAFTS MOVEMENT 54’’ 54’’
TOTAL TIME 4’ 34’’ 4’ 14’’
TIME COMPARISON
STANDARD WORK IMPROVED WORK
TOTAL REVENUE 12 € 16 €
VARIABLE COSTS -9.6 € - 12.8 €
MARGIN CONTRIBUTION 2.4 € 3.2 €
FIXED COSTS 0 € 0 €
EBIT 2.4 € 3.2 €
PROFIT COMPARISON
QUALITY COMPARISONQuality of the improved products is better than quality of the standard work, thanks to the newintroductions in all steps of work.
Airplane Simulation Analysis – Assignment 0120
The time in improved work isbetter than in standard work,because with the newintroductions, people work faster.
The profit in improved work isbigger than in standard work,because with the newintroduction, the productivity ofworkers is improved and there isany unsold airplane.
From environmental point of view, we can notice several improvements thanks to the introduction of
the solutions discussed above:
Environmental Impact
Reduction of Overproduction
The choice of colour at the end of the supply chain reduces:
1. Unnecessary aircrafts.
2. Unsold aircrafts that become obsolete.
3. Aircrafts in stock and therefore a reduction of energy for heating, cooling
and lighting the warehouse.
Reduction of Physical Waste
The introduction of scissors allows:
1. Reduction of scraps: it eliminates the possibility of tearing paper
incorrectly.
2. Reduction of energy: thanks to the reduction of the time, more is
produced with the same amount of energy.
Airplane Simulation Analysis – Assignment 01 21
Reduction of Consumption
The production under full load enables the reduction of energy consumption along the production
chain.
Reduction of Consumption
Further Suggestions
Used recycled paper: the production of each ton of recycled paper uses from 7 to 15 kg of
chemical compounds based on oxygen, compared to the 250 kg necessary for non-recycled paper.
Introduction of ISO 14001 and EMAS certificates.
Reuse of waste materials.
Use of renewable energy; in the short term the investment in renewable energy is a huge cost, but
the enterprise can receive several incentives provided by law.
Airplane Simulation Analysis – Assignment 01 22