Problem Definition
Ability to meet unexpected demand: If the there was a sudden increase in the demand
earlier, work shifts had to be increased to 10-12 hours which was not viewed as
sustainable.
High Cycle Time: Cycle time was coming out to be higher than desired in the beginning
due to which actual production was lower.
Creeping of non-standard operations into the assembly process: In operation #5 on
workstation 2, webcam cable required additional adhesive to secure it into the cover
assembly frame.
Accumulation of buffer inventories between workstations.
Due to the pressure of maintaining the output levels, supervisors often engaged in quick
fixing and did not concentrate on tracing out the root cause and having a permanent
solution of problems.
Recommendations
Scenario I
In this scenario, we start by increasing the actual production hours from 8 hours to 8.68 hours,
the firm will be able to meet the demand of 130,000 units per month.
Scenario II
This implies identification of those processes, which take up most time and then taking steps to
reduce the same so that the cycle time goes down. It is assumed that these tasks can be divided
between 2 people who work on it parallel basis, which helps in reduction of the overall time
taken
Based on the analysis, 4 processes have process time greater than 46 seconds and using 1
additional labour for each such process would be helpful.
Conclusion
Based on the labour costs under each situation we recommend Scenario I/II.
Apart from this other recommendations are:
Providing training to labourers and supervisors to increase the efficiency of the
operations and to reduce:
o Buffer inventories
o Cycle time
Adding another assembly line could be another option so as to reduce work load on the
labourers, leaving some time for training purposes to improve productivity