Jones Manufacturing Company

Aicha Thiam, Daniel Pugh, Nathan Palmer, Jamie Munger, and Douglas Ashburn

MBA 513

Current Process Map

Table 1: Hours to complete 20,000 unit order Lot size =

2000

Moving Time Working Time Total Target

Lead Time272 hrs(16hrs * 17process)

283 hrs 20mns(16 hrs 40mns * 17 process)

555 hrs 20mns

Cycle Time(balanced line)

16hrs 40mns150 hrs(16 hrs 40mns * 9 lots)

Complete Order 705 hrs 20mns 200 hours

Solution A

Table 2: Hours to complete 20,000 unit orderProblem: Lead Time

Solution A: Reduce lot size to 200

Moving Time Working Time Total Target

Lead Time221 hours(13hrs * 17process)

28 hrs 20mns(1hr 40mns * 17 process)

249 hrs 20mns

Cycle Time (balanced line)

1hr 40mns165 hours(1hr 40mns * 99 lots)

Complete Order 414hrs 20mns 200 hours

• Reduce lot size…. Changes the cycle time but not enough• The problem is with the “informational downtime” involved

with moving the parts: work orders, scheduling, etc…

• Introduce a “load- and go-” system

Table 3: Hours to complete 20,000 unit orderProblem: Lead Time and Moving Time

Solution B: Reduce lot size to 200 & Switch- and go- system

Moving Time Working Time Total Target

Lead Time5 hrs 40mns(20mns * 17process)

28 hrs 20mns(1hr 40mns * 17 process)

34 hrs

Cycle Time(balanced line)

1hr 40mns 165 hrs(1hr 40mns * 99 lots)

Complete Order 199 hrs 200 hours

Solution B

• Same chaotic movement of the forklifts around the factory• Solution:

– Create an “assembly-line” setup in the unused space

New Process Map

Table 4: Cost/Savings of Revised Factory Layout from Forklifts to Conveyors

Capital Investment Savings/ month Payback Period

Move 48 Machines $144,000

Install Gravity Conveyor $19,040

Eliminate Forklifts and Drivers $26,720

Totals: $163,040 $26,720 6 months

Assume: 33.33% increase of factory capacity

• Pros:– Increase to capacity does not require more forklifts/drivers

– Cost per bracket would be reduced

• Cons:– Time to establish new system may exceed time allotted

– Reduced flexibility for the Small Parts Manufacturing Facility

• Final decision is strategic.