Process Analysis QUIZ 1

1

QUIZ 1– Operations Management

Time: 1 hour Total Marks: 50

NAME: ID NUMBER:

1. A toy manufacturer receives toys from local carpenters and performs the final operations

before stocking it for sale. The process consists of 5 steps. The first step is to arrange a toy

in a pallet. After this, the pallet moves to the next station where the toy is pre-treated. This

is to increase the toy’s life and to increase the effectiveness of the painting operation. The

next step is to send it to the spray-painting chamber, where it is painted as per the

specifications. At present, there is one spray-painting machine. After painting, it is placed in

a drying machine for drying. The painting process and the pre-treatment process are

specialized so the paint dries quickly. Finally, the toy is inspected and packed. The factory

has one 6 hour shift per day.

a. Develop a process flow diagram for these steps. (5)

b. What is the throughput time for this manufacturing process? (3)

c. What is the cycle time for this process? (3)

d. Identify the bottleneck for this process. (3)

e. What is the productive capacity for this process? (4)

f. What would be the idle time for each of the processes per shift? (6)

g. At which process should we keep work-in-process buffer inventory? How much WIP

buffer would be required to reduce the cycle time to 10 minutes? (6)

h. Suppose that the profit per toy is $20, and rent per day for an additional painting

machine is $5 how much additional profit would the company make by adding the

painting machine in a day if any? (5)

i. If the company opts for buying the painting machine for $600 instead of renting.

What would be the payback period for the machine in days? (5)