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Dasher Case

The document discusses a manufacturing process and ways to improve it. It analyzes the capacities, bottlenecks, costs, revenues, and profits of each step in the process. Hiring skilled operators or changing equipment capacities are evaluated as ways to increase production capacity and profits. The key factors that affect lead time and quality are identified as processing time, waiting time, bottlenecks, inventory, end-of-month rushes, inspections, and information flow. The case study provides an example of evaluating a job shop production process and identifying operational problems and solutions.

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245 views

Dasher Case

The document discusses a manufacturing process and ways to improve it. It analyzes the capacities, bottlenecks, costs, revenues, and profits of each step in the process. Hiring skilled operators or changing equipment capacities are evaluated as ways to increase production capacity and profits. The key factors that affect lead time and quality are identified as processing time, waiting time, bottlenecks, inventory, end-of-month rushes, inspections, and information flow. The case study provides an example of evaluating a job shop production process and identifying operational problems and solutions.

Uploaded by

www
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

(a)
Demand function is given by Y=6x+48000
As the selling price is ￡22
22x=6x+48000
x=3000
So 3000 units must be produced and sold to break even.
(b)
When price is reduced to ￡15
Total cost=￡48000+￡6*6000=￡8400090000
Total selling price = ￡15*6000=￡90000
￡90000-￡84000=￡6000
So the product’s total contribution to profits in the first year is ￡6000

2. (a)
Capacity of A = 60/4 = 15 units/hr
Capacity of B = 60/6 = 10 units/hr
Capacity of C = 60/3 = 20 units/hr
Bottleneck is step B because it produces the least units per hour, so the capacity of the progress is
10 units/hr
(b)
Processing time per unit of the progress = 60/10 = 6
Capacity utilization of A = processing time per unit for A / processing time per unit of progress
*100% = 4/6 * 100% =67%
(c)
Maximum hour of production = 12
Total number of unit to be produced = capacity of progress * number of progress
=10*12=120
Raw material cost = 120*7 = 840
Total wages = (15*8+20*4)*3 = 600
Total cost =840+600=1440
Total revenue = 13*120 = 1560
Profit = 1560-1440=120
When overtime is not used, then the production is 10*8=80
Raw material cost = 80*7= 560
Total wages = 15*8*3 = 360
Total cost =560+3600=920
Total revenue = 13*80 = 1040
Profit = 1040-920=120
Yes, it is pay to use overtime since the profit is positive
(d)
With the original system
Profit = 80*(13-7)-(15*8*3) = 120
With the skilled operator
Capacity of A = 60/4 = 15 units/hr
Capacity of B = 60/4 = 15 units/hr
Capacity of C = 60/3 = 20 units/hr
Now the capacity is 15 units/hr
Raw material cost = 7*15*8 = 840
Total wages=2*8*15+1*8*20=400
Total cost = 840+400=1240
Total revenue=13*15*8=1560
Profit=1560-1240=320
320>120
Yes, i would like to hire a skilled operator since the profit is higher.
(e)
Capacity of A = 60/2 = 30 units/hr
Capacity of B = 60/6 = 10 units/hr
Capacity of C = 60/3 = 20 units/hr
Now the capacity is 10 units/hr
Raw material cost = 7*10*8 = 560
Total wages=2*8*15+1*8*20=400
Total cost = 560+400=960
Total revenue=13*10*8=1040
Profit=1040-940=100
100<120
So i would not like to hire a skilled operator since the profit with skilled is lower

3. (a)
Total processing time=10+2*40=90minutes
Capacity=40/90=4/9 unit/min
(b)
Capacity for step 1 = 5/[10+(5*1)] = 1/3
Capacity for step 2 = 5/[0+(5*2)] = 0.5
Capacity for step 3 = 5/[0+(5*1.5)] = 2/3
So the bottleneck for the progress is step 1
(c)
Step 1 = 10+40*1 = 50 minutes
Step 2 = 40*2 = 80 minutes
So the total time through both step 1 and step2 is 80+50=130 minutes
Step 3 = 1.5*15 = 22.5 minutes
The total time of the progress is 50+80+22.5=152.5 minutes
(d)
Total time = 10+1+2+1.5=14.5
Q=30parts
30*2=60minutes
14.5+29/(30/60)=72.5minutes
4. (a)
Arrival rate I = 14 customers per hour
Service rate m = 3 customers per minute = 20 customers per hour
Utilization r = l/m = 14/20 = 0.7
Average time in system
w=(1/m)/(1-r)=(1/20)/(1-0.7)=1/6hour=10minutes
10*￡0.6=6
So ￡6 need to pay to keep taxi waiting
(b)
Six assistants should be hired

5. Dasher case study talks about a company that produces the printed circuit boards (PCB). The
case mainly shows the Dasher company’s manufacturing process, order processing current
operating problems and quality and delivery problems.

During the case study, it covers several topics from PTOM module, that is the process selection
and performance metrics in OM. From the Dasher’s process, it mainly uses the job shop process ,
which operates under “make to order” and the advantage of the job shop process is the high
product variety and high process flexibility, even though the volume of the product might low, but
the products are all customized.

From the case study, I learned the factors that affect lead time and quality, as the average lead
time=processing time+ average waiting time ,so to improve the lead time, we should improve the
bottlenecks or increase the raw material inventory. The rushes of the end of the month might result
in shoddy inspections, besides, the items are missing operations due to a poor information flow, to
improve the quality, we can hire new inspection personnel with a fresh set of blueprints, improve
the information flow and reduce the rushes of the month.

In my opinion, the main message of the case study is the process selection ,for example, it tells us
the process is very important for managers to choose a most appropriate operations , marketing
and business strategies.

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