Stopping the line until a replacement seat is available is not an option as it would result in stopping of the entire chain. KFS delivers seat replacements only twice a day. Further, it sometimes sends incorrect seat assemblies. In many cases, the replacement seats are not installed in a timely manner. There are several four-days old vehicles in the overflow parking area when they should have been cleared by the end of the next shift. The Effect Due to the seat problems, the run ratio was down from 95% to a damaging 85%. Producing the missing cars via overtime capacity will cost TMM in excess of $16,000 per shift as per the table below. Parameter Qty Stations 353 Employees 769 Wage/Hour $ 17.00 Overtime $ 25.50 Cycle Time (Cars/min) 1.05 Shift Length (min) 525 'Productive' Minutes (1 hr unpaid +15 min paid) 450 Run Ratio 100% 473 95% 449 85% 402 'Lost' Cars Per Shift (95% to 85%) 47 Cost per Hour of Production Overtime $ 19,610 Time Required to Produce Add'l Cars ( min) 50 Cost to Produce Additional Cars $ 16,215 This translates to around $8.4 Million per year considering two shifts and a 5-day workweek. 1
Analysis As observed during a round of the clinic, the vehicles with defects caused during assembly (workers occasionally install a seat bolt at the wrong angle) were also present in the clinic, even though, this problem is easily fixed within 30 seconds. However, these accounted for only 11% of all seat problems between April 14 and April 30, 1992 according to the Group Leader’s Seat Defect Data.
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- Summer '13