PRODUCTION REPORT
DATE - LOCATION:
- 15/05/2023 – MONTERIA
PRESENTADO POR:
- Samara Baena Mestra
- Edwin Falx Ruiz
- Andres Toro Lombana
PRESENTADO A:
- ING. Yahir Gonzales
OBJETIVO:
- Perform simulation of a production process
- Analyze and understand simulation results
CASE STUDY:
The duration of the execution of a manufacturing process is 64800 minutes, the company
works 24 hours a day. Besides, there’s only one operator in the shop every shift.
1- What recommendations would I give to the company?
2- The company wants to get a profit of at least US$200,000 in that period, what should be
the selling price of the product?
PROCESO:
When a part enters the machine area, it requires the attention of an operator to mount the
part on the machine. After the part is mounted, the machine can process it without the
operator.
Once the process is completed, the operator is required again to remove the part. After
finishing, the part leaves the system and is accounted for.
Machine Assembly time Process time Remotion time
number
1 Normal (8,1) Trian ( 20,23,26) Normal (7,1)
2 Trian (6,8,12) Normal (11,2) Trian (4,6,8)
Table 1. Assembly, processing and removal time for Exercise machines.
Odds:
The operations consist of a probability of 0.08 of generating defective items in machine 1
and 0.12 of manufacturing them in machine 2. Of these only 40% can be reprocessed the
others are sold as scrap at 10% of the sales price of the finished product.
SALE CONDITIONS:
INDICATOR VALUE
Unit selling price US$150
Unit cost of manufacturing US$60
Fixed monthly costs US$ 25.000
Monthly Overhead US$10.000
Unit price of scrap metal US$15
Table 2. Condiciones de Venta
RESULT OBTAINED FROM SIMULATION
After performing the simulation in the engineering software (Arenas) the production
process was obtained many data and relevant information that we will analyze below with
the intention of analyzing the profitability, process logic, asset management and timing as
well as tail and utilization.
1- NUMBER OF PIECES ENTERED AND FINISHED
Image 1. Number of pieces
Where we realize that they entered 2558 pieces and left 2557 pieces. Therefore, at the end
of the 45-day set time a piece was left in the middle of the process unfinished.
2- QUANTITIES OF PARTS PRODUCED (GOOD AND SCRAP)
Image 2. Number and type of finished piece
In short, we can see that:
MACHINE NUMBER TYPE
M1 1210 GOOD PIECES
73 SCRAP
M2 1162 GOOD PIECES
112 SCRAP
Table 3. Number and type of made pieces
Where it is evidenced that the probabilities previously recorded are reflected in the results
obtained. Being, Machine 2 the most junk generated as specified by its operation.
3- AVERAGE WAITING TIMES
Image 3. Waiting time report (minutes)
Machine 1 has an average wait of 76 minutes while machine 2 has 32 minutes.
4- AVERAGE ROW QUANTITIES
Image 4. Report row amounts
Where we can observe that the largest tail is presented is 9 pieces in each machine.
5- PERCENTAGE OF USE OF RESOURCES
Figure 1. Use of assets.
Of which we can analyze an important part such as the use of assets and it is evident that:
Machine 1 works 80% of the process, while machine 2 works 63% of the process and the
operator works during 61% of the process.
RECOMMENDATIONS
Resource utilization analysis shows that the Machine 2 and Operator assets have
low utilization percentages, being available without performing activity 25% of the
process during the 45 days.
Therefore, it is recommended to perform an analysis of the process times and assignment of
tasks to modify these activities so that the percentages of use of machine 2 and the operator
can be increased, and also increase the production of parts.
Machines present relatively low amounts of scrap not exceeding 10% of processed
parts were scrap.
An analysis of the production process could be performed to correct errors in the process
and decrease the probability of generating scrap. In addition, training and updates can be
made on the necessary worker certifications to have the necessary skill to perform a proper
process.
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ECONOMIC CASE
Based on the conditions of sale, the quantities of parts made (good - scrap) and the
established cost indicators we proceed to perform a profitability analysis of the process.
FORMULAS USED
Utility income - total costs
total costs fixed costs + variable costs
Total variable costs Variable Costs x Time
Total fixed costs Fixed Costs x Time
Income Sale price x Quantity of parts
Total costs Fixed costs x Time
Table 4. Formulas used
We proceed to calculate the Profit:
GOOD PARTS M1 US$ 181,500
GOOD PARTS M2 US$ $174,300
SCRAP GENERATED M1 US$ $1,095
SCRAP GENERATED M2 US$ $1,680
TOTAL US$ 358,575
Table 5. Income
We proceed to calculate the costs:
Monthly expenses (Total) US$ 3,750
Fixed monthly costs (Total) US$ 15,000
Manufacturing costs (Total) US$ 153,420
TOTAL US$ 172,170
Table 6. Costs
Finally, we perform the utility calculation:
UTILITY US$ 358,575 - US$ 172,170
US$ 186,405
Table 7. Utility
This manufacturing company under the conditions of work, sale and established
production presents a utility:
US$ 186,405
EXPECTED UTILITY CASE (US$200.000)
What should be the selling price of the product?
To be able to develop this question we made the search for several sales prices that gave us
the expected utility. This sale price was:
Sale price US$ 156
Table 8. Current selling price
Therefore, we again perform all the respective calculations to determine the utility.
Remaining as follows:
We proceed to calculate the Profit:
GOOD PARTS M1 US$ 188,760
GOOD PARTS M2 US$ 181,272
SCRAP GENERATED M1 US$ 1,139
SCRAP GENERATED M2 US$ 1,747
TOTAL US$ 372,918
Table 9. Revenue for expected profit case
We proceed to calculate the costs:
Monthly expenses (Total) US$ 3,750
Fixed monthly costs (Total) US$ 15,000
Manufacturing costs (Total) US$ 153,420
TOTAL US$ 172,170
Table 10. Costs for expected utility case
Finally, we perform the utility calculation:
US$ 372,912- US$ 172,170
UTILIDAD
US$ 200,748
Table 11. Utility for expected utility case
Finally, we confirm that increasing the sales price by US$6 will yield the expected profit of
$200,000.
PHILOSOPHY 5s
In the continuous movement of modern life, our personal spaces, such as the living room
table, can easily become a sea of disorder. Papers, books, remote controls and other objects
accumulate, creating a chaotic environment and not conducive to concentration or
relaxation. This is where the 5S philosophy comes into play, a Japanese management
methodology based on five fundamental principles:
Step by step philosophy implementation:
1. Seiri (Select): We define the area or area where we will use this methodology, also, we
gather all the objects that are in the table of the room.
SELECTED AREA: LOUNGE TABLE
Image 3. Selected area
2. Seiton (Sort): We define a specific place for each object we choose to keep. Also, we
consider the frequency of use and accessibility when placing objects.
OBJECT FREQUENCY OF USE ACTION
Wallet Daily Relocate
Watches Daily Relocate
Air freshener Weekly Recycle
Empty creams Daily Recycle
Deodorant pad Daily Recycle
Keys Daily Relocate
Comb Daily Relocate
Empty boxes Never Recycle
Table 12. Objects classification
3. Seiso (Clean): We thoroughly clean the table in the room, eliminating dust, dirt and
stains. We also relocated or recycled as we had planned.
Image 4. Cleaned zone
4. Seiketsu (Standardize): We established clear rules for the use and maintenance of the
living room table for all relatives present at home. These were:
- We define e. responsible for carrying out tasks (cleaning the table, sorting objects, etc.)
and we set a cleaning frequency (1 time a day)
- We create posters or labels to remind all the established rules.
5. Shitsuke (Keeping discipline): We try to make 5S a daily habit. We will do this through
the demonstration and arguments of the people who use the table of how their experience
was before and after the application of the methodology. In addition, we will spend a few
minutes each day to maintain order and cleanliness of the table in the room with constant
constancy and reminders to family.
Image 5. Before implementation Image 6. after implementation
CONCLUSIONS:
Implementing the 5S philosophy at the table brought numerous benefits:
1- A greater order and organization in space is created, this facilitates the search for
objects and reduces the stress associated with disorder.
2- Improved productivity in the environment, organizing and allowing to concentrate
feeling more comfortable.
3- A reduction in cleaning time was generated. Since, by maintaining order, the
amount of time spent cleaning is reduced.
4- The creation of a more pleasant atmosphere was achieved. Because, it created a
clean and tidy space invites relaxation and enjoyment for all family members.