Case ID: 4420     Solution ID: 37093     Words: 606 Price $ 45

Bayonne packaging, Inc. Case Solution

Abstract

Recently Bayonne finds itself in a very troubling situation, the challenge generally persistent in three key areas of the business; cost, quality and the delivery of the product. Since these problems were not properly dealt in the past, they eventually contributed to a loss that has being experienced by the company for the very first time. The Quality was compromised mainly due to the fold and glue. These damaged items are then left to be scrapped, thus adding undue costs on the business. The glue was the item that was disproportionately used. It varied from item to item, in some there was no glue at all, or in some the glue was present in excess amounts. The finishing department was not performing to its best potential either. There were regular complaints that attachments were largely missing, either partially or wholly. When such mishaps are going to happen, then it was not a surprise that the deliveries got rejected occasionally. Getting into the root of the problem was although very time consuming but in the wake of such an alarming situation, an appropriate response was largely needed.

It was required to get the capacity per pieces per day. So as we know that per day there are two shifts of 7, 5 hours each with a meal break of 30 minutes for every worker, in the end of one day there is 15 hours of work time. Knowing that the time available for month is 347 hours, each month has 23, 1(3) days.


Therefore, after the conversion of months into days, we conclude that capacity per pieces per day equals 240000, meaning the maximum amount the resource, in this case the machines from the Die-Cut department, can produce per unit of time (per day, in this question). 

b) Pairs of orders can be ganged

Facing this new situation, where pairs of orders can be ganged, the setup time must be allocated in a different way. Now, we are going to have one setup for every two orders. The time available per month will be the same, 41640 minutes - calculations on the sub question above. Time available per month = 41640 min

In order to know the number of orders (pairs of orders, in this case) per month ( Q ), we have to match the total time available per month to the number of pairs of orders multiplying by the total time to produce one pair of orders. Time available per month = Q x Setup time + Q x Run time

Time available per month = Q x (Setup time + Run time)
Time available per month = Q x (Time to produce a pair of orders)
The setup time per job (calculations in the sub question above) is 150 minutes, and each time we process 2 orders 150 minutes will be spent to change dies.
Setup Time per job = 150 min
To compute the run time per pair of orders we have to multiply the run time per sheet by the number of sheets that compose a pair of orders. As we are assuming that orders averaged 10 000 sheets, we will have that each pair of orders has 20 000 sheets (2 orders x 10 000 sheets). Run time/ pair of order = Run time/sheet x N of sheets/ pair of order Run Time/ pair of order = 0, 0075 min x 20000 sheets

Run Time/order = 150 min
So, the total time to produce a pair of orders which is composed of setup time and run time both per pair of orders will be 300 minutes Time to produce one order = Setup time + Run Time
Time to produce one order = 150 min + 150 min 
Time to produce one order = 300 min
We are able to compute Q - number of orders (pair) per month - which equals 138, 8 orders per month Time available per month = Q x Time to produce one order
Q = Time available per monthTime to produce one order
Q = 41 640 min 300 min
Q= 138, 8 orders/month
Keeping in mind that 1 order = 30 000 pieces =10 000 sheets we can convert Q - capacity per order per month - into capacity per sheets and also per pieces both per month. 

Value| Calculations|
Capacity/ pair of orders/ month| 138,8| Made above|
Capacity/sheets/month| 2776000| 138,8 x 20 000 sheets|
Capacity/pieces/month| 8328000| 138,8 x 60 000 pieces|

This last value is the capacity per pieces per month but as we are asked to compute the capacity per pieces per day we must make the conversion. As each day has 15 hours of work time (calculations in the sub question above) and the time available for month is 347 hours, dividing this value by the 15 hours per day, we conclude that each month has 23, 1(3) days. Therefore, after the conversion of months into days we conclude that capacity per pieces per day equals 360000, meaning the maximum amount the resource, in this case the machines from the Die-Cut department, can produce per unit of time, in this question, day. 

c) All the others can be ganged In the case that all orders are ganged, the total process will include only one set up time. In order to know the number of orders of the process per month (Q), we have to match the total time available per month to the number of orders multiplying by the total time to produce one order. Time available per month = Setup time + Q x Run time

The total time available per month remains the same, 41640 minutes. The setup time will be independent from the number of orders because there will be a single one for all of them considering that they are all ganged. Time available per month = 41640 min

Setup Time per job = 150 min
Knowing that one order has 10000 sheets, the run time per order will be 75minutes. Run time/order = Run time/sheet x N of sheets/order
Run Time/order = 0, 0075 min x 10000 sheets
Run Time/order = 75 min
Regarding all of these values, it's now possible to calculate Q - number of orders per month. Time available per month = Setup time + Q x Run time
41640 min = 150 min + Q x 75 min
Q = 41640 min-150 min75 min = 553, 2 orders/month

Keeping in mind that 1 order = 30 000 pieces =10 000 sheets we can convert Q - capacity per order per month - into capacity per sheets and also per pieces both per month. 

Value| Calculations|
Capacity/order/ month| 553,2| Made above|
Capacity/sheets/month| 5532000| 553,2 x 10 000 sheets|
Capacity/pieces/month| 16596000| 553,2 x 30 000 pieces|

As we are asked to compute the capacity per pieces per day we must make the conversion. Each day has 15 hours of work time (calculations in the sub question above) and the time available for month is 347 hours, dividing this value by the 15 hours per day, we conclude that each month has 23, 1(3) days. Therefore, after the conversion of months into days we conclude that when orders can be ganged capacity per pieces per day equals 717406, 3, meaning the maximum amount the resource, in this case the machines from the Die-Cut department, can produce per unit of time, in this question, day.

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Questions Covered

1. What is the underlying problem ?

2. What are the root causes of the problem?

3. Develop solution using DMAIC methodology.

4. Using a leading change plan, how will you implement your solution?

5. Prepare a written report and accompanying presentation.