bmx case study for operations
TRANSCRIPT
-
7/30/2019 BMX Case Study for operations
1/7
BMX Cycle Case Analysis
-
7/30/2019 BMX Case Study for operations
2/7
Market & Benefit Analysis
Price COGSTotal GM per
month
Total Annual
GM
1200 BMX cycles 1,200 1,100 119,520 1,434,240
4000 BMX cycles 1,200 1,020 720,000 8,640,000
Benefit 7,205,760
1986/88 1992
Total Market 580,000 1,000,000
BMX demand 48,000 82,759
8.3%
-
7/30/2019 BMX Case Study for operations
3/7
Process Flow Chart
HandleShop
BB Shell
Shop
Cutting
Shop
Machine
Shop
Welding
Line
Enameling &
Phosphating
Shop
Rim Shop
Press Shop
Saddle,
Break &
Hub Shop
Electroplating
Shop
Final
Assembly
Area
-
7/30/2019 BMX Case Study for operations
4/7
Enameling and Phosphating Shop
Item Pieces/jigCycle time
(min)/ jig
Pieces
Needed
Each Day
Jigs needed
per day
Time (min)
needed for
required
demand
Frame 8 0.5 160 20 10
Handle 4 2.5 160 40 100
Front Fork 12 2.5 160 14 35
Seat pillar 8 2.5 160 20 50
disc/ Chain disc 9 2.5 160 18 45Handle stem 9 2.5 160 18 45
Upper bracket 16 2.5 160 10 25
Seat clamp 20 2.5 160 8 20
330
-
7/30/2019 BMX Case Study for operations
5/7
Rim Assembly
Total Market Plastic Steel
Demand per month 8,000 4,800 3,200
Current Daily Production 197 140 57
Required Production Ratio 100% 60% 40%
Required Daily Production 320 192 128Required staff per shift 4.74 1.37 3.37
Available staff per shift 5 2 3
Possible in 2 shifts 394 280 114
Need to outsource 14 0 14
-
7/30/2019 BMX Case Study for operations
6/7
Cost Analysis
Total current labor cost/ month = Rs. 528,000
240 FT @ 1700/month = 408,000
120 DP @ 40/shift = 120,000
New welding line = Rs. 1,000,000
Outsourcing Rim Assembly (14 per day)
14 x 5 x 25 = Rs. 1,750
Current cost of in-house assembly (19 @ Rs. 40) Rs 2.11 per rim
-
7/30/2019 BMX Case Study for operations
7/7
Qualitative Analysis
Production planning for colors needs
improvement
Use weekly production figures
Minimize setups
Keep turnover minimum to develop skilled
workforce
Market is going to increase further
Subcontracting