GROUP ASSIGNMENT

M/s Ram Krishna CNC Shop

The Indian auto industry is one of the largest in the world. It accounts for 7.1 per cent of the
country's Gross Domestic Product (GDP). As of FY 2018-19, around 31 per cent of small cars
sold globally are manufactured in India, and it is expected that auto industry will grow
significantly in the future. The market for machined components is not fully exploited yet, and
all manufactured products can generally be sold. The company has also signed long term
business agreements (LTBA) with the big automobile manufactures to supply their
components. So the firm has assured business for the coming few years, with a reasonably
stable market.

The company’s founder, [Link] Reddy, has been running the company since the past 20
years. Initially his shop consisted of 10 lathe machines and 3 milling machines for machining
the required components. About 5 years back, he revamped the shop and set up 3 CNC
machines for performing the machining operations. He wished to expand the business, but due
to time constraints and resource unavailability he had been unable to analyze the complete
situation. Accordingly he hired a consultant to study the current scenario, and explained the
present set up to the consultant.

The job shop consists of receiving, manufacturing and shipping activities. Raw material
required for manufacturing the components is delivered to the receiving dock, and is placed
into storage until it is taken for processing at the CNC machines. The storage space for keeping
the raw material in the form of racks of storage cells. There are two racks arranged along an
aisle, and each rack has 10 ten cells (total number of cells are 20). The three CNC machines
are identical, and there are three workers for handling the machines (loading, unloading,
walking and monitoring). An incoming job is processed in a single operation at any one of the
machines; the assignment is to the first available machine. After processing, the finished
components are palletized and then moved to storage at the shipping dock, until the completed
pallets can be loaded on truck. The shipping area is at the opposite end from the receiving area,
and is arranged in a similar two-rack format along an aisle. Mr. Reddy has given a layout of
the shop as shown in the following figure to the consultant.

Delivery of the raw material into the factory is by a hired truck, and another similar truck is
used for shipping of components from the factory. The material delivery truck arrives at
intervals of three hours; the shipping truck arrives once every two hours. Buffers have been
provided at different stages (waiting before storage, in material storage, in shop, at machine,
waiting to move to shipping, in shipping etc.). The capacities of the buffers have been chosen
by default, though they can be changed if needed.

Mr Reddy has also provided values of certain parameter as given in the table to examine the
situation.

Based on the gathered data and plant layout, the consultant has developed a simulation model
in AnyLogic Software. The schematic flowchart of model’s logic is shown in the figure, and
given parameters are already entered in the model. A Management Trainee who has joined this
year has been assigned the work of playing around with the model to generate understanding
of the system and experiment with some design choices by changing selected parameters. As
in any case study, information provided is not necessarily complete, nor is all of it totally relevant. Make
reasonable assumptions/ approximations/ estimates where you need to.

Parameters Value
Number of fork lifts 2 Nos
Fork lift speed 3 mtr/sec
Truck Speed 3 mtr/sec
Capacity of the pallet 9 Nos
Worker movement speed 1 mtr/sec
Distribution of processing time at machine Triangular
Minimum processing time at machine 1 minutes
Average processing time at machine 2 minutes
Maximum processing time at machine 4 minutes
Truck capacity 16 pallets
Palletizing Delay 3 seconds
Pick up component delay at machine 5 seconds
Storage put delay 5 seconds
Storage pick delay 5 seconds
 GROUP ASSIGNMENT
DISCRETE SIMULATION MODEL BASED ON MINI CNC SHOP

In this assignment you are required to recommend the preferred solution(s) for the situation as described
in the CNC Shop case, using analysis and simulation as appropriate. You have to analyze the situation
and provide the relevant decision support information to Mr. Reddy. Specifically, he would be interested
in knowing performance metrics such as Throughput, Machine utilization, Forklift utilization, WIP
levels and storage utilization, and Flow Time break-up pattern at each stage. You can choose what
design parameters could be useful to tune the performance: some which you could experiment with are:

1. Sensitivity to demand rates by changing material truck arrival rate: try at least one level above
and one level below the pre-entered value.
2. Number of forklift trucks for internal handling: again, try at least one level above and one level
below the pre-entered value.
3. Reducing pallet sizes

Submit your full analysis in a compact written report, giving the qualitative and quantitative reasons for
your recommendations. Show calculations, figures, charts, etc. as necessary. Identify the major model
files used for the assignment, and upload such files in a single zip folder, clearly labeled with your
group number (Group no_ Section) in the AIS.

This assignment is based on discrete simulation, which you have to perform on the AnyLogic Software,
a GUI based multi-method simulation tool. You can download the free Personal Learning Edition (PLE)
version from the internet; steps for downloading and installation are given below.

1. Open the site [Link]

3. Choose the rectangular box as given below based on your PC configuration.

Install the software on your PC using the downloaded installer file and open the AnyLogic
window. Then go to Header in File name and open the file you wish to run. The pre-developed
Job shop model is in Job [Link] can be downloaded from mail attachment. On opening this
file, the job shop appears in the graphical editor. At any time, the model structure can be seen
through Main-Layout-Logical Flow

5. Before beginning the analysis, make a couple of required changes:

• Enter your section and group number(Group number_Section) on the model as follows.
Go to the main window, click on Presentation, and navigate to the “text 24” link. Double
click on text 24 and edit your group number in the text as shown below:

• Enter the random number seed for your group by following the menus through Simulation
Main – Simulation Experiment – Randomness – Fixed. Use the 5-digit roll number of any
of your group members as the seed.
6. You are now ready for the analysis. Go to project view corresponding to particular station or
zone for changing the parameter values. For instance to increase the arrival rate, click
sourceBodies, after which Properties view will appear and then values can be changed as per
requirement. The simulation can be run thereafter.

7. For running the model you have to click Run button, after which you can see the simulation
and live results.

Run

8. Run length can be input through the Simulation Main – Simulation Experiment menus. Time
units are in seconds.
The PLE version of the software is limited to 5000 entities.
A simulation run ends when specified time completed or entities reach limit
The simulation runs can be speeded up or slowed down through the Run control button.

9. The software generates statistics on-screen for the simulation during the runs and/ or at the
end. You will need to capture pertinent screenshots and/ or Copy-Paste from necessary screens
for your final submission. A sample Statistics screen is shown below:
 Throughput levels at individual stages can be seen on the Logic Diagram during/ at the end of
the simulation

Likewise, storage utilization levels can be seen on the Statistics page during/ at the end of the
simulation

10. Properties of each pertinent element can be seen and changed conveniently by clicking the
element in the Logic diagram in the model screen. Alternatively, multiple changes can easily
be done through Simulation Main – All Simulation Experiment parameters.

11. At any time, Model files can be saved using File-Save or File-Save As