Tutorial 1 - Tutorial 1 Equipment fractions Definition: the...

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Unformatted text preview: Tutorial 1 Equipment fractions Definition: the quantity of equipment required for an operation Can be determined by dividing total time required to perform an operation by the time available to complete the operation Let F = number of machines required per shift. We use the following model to estimate the equipment fraction required: where S = “standard time”, time required per unit produced Q = number of units produced (to be determined from “Scrap” or “Reject allowance” calculations H = amount of time available for production E = historical efficiency of performing the operation. “Divide S by E” R = historical reliability of the equipment. “Multiple H by R” Example: It takes 0.5 hr to duplicate a book 6 books are to be duplicated in 2 hr How many machine fractions are needed? STUDENT. 1.5 = 6*0.5/2. Questions: 1. Are books actually being duplicated at the 0.5 hr per book rate? 2. Is the machine actually available when needed during the 2 hr period? Solutions: 1. Let E = historical efficiency of performing the operation. Divide S by E. 2. Let R = historical reliability of the equipment. Multiple H by R. Final formula: Discussion: What if the operation requires a setup time before production can begin? STUDENT. What if the setup time is on a per machine basis? STUDENT. Reject allowance example Example (2.2 from textbook) First, determine cost and revenue. The profit as a function of Q and x is: The expected profit from producing Q units is: See supplement Excel sheet for actual calculation ...
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