Also since the trend indicated that the future demand was going to increase we decided to buy machine 1. Summary of Major Decisions: Day 50: * Order Machine 1: This was identified as the bottleneck based on the capacity comparison. * Order Machine 2: Machine 2 became the new bottleneck and so one unit was purchased. * Batch size: The order was changed to 2 lots of 30 units each. Initially we had no idea about the fixed time and the run times of different machines and so we decided to look at the pattern after altering the batch size. Days 52 – 58: * Order Machine 3: Machine 3 became the new bottleneck and so one unit was purchased. Change Priority rule on station 2: Even after changing the batch size, there was no visible effect on the queue size and so we decided to change the change the priority rule on station 2 to give priority to step 4. Step 4 was the final step of processing on the job and hence was important from revenue generation point of view. As per the expectation the lead time decreased from 0. 39644 days to 0. 3682 days within a period of 16 days. * Order Machine 1: Machine 1 became the new bottleneck and so one unit was purchased. * Batch Size: The batch size was changed to 3 batches of 20 units each.
This was done in the anticipation of a decrease in lead time. Days 59-69: * Switching to Contract 2: We switched to contract 2. Our calculation showed that even if we are incurring a slight penalty because of lead time more than 0. 25 day we will still make revenues more than $1000. When demand spiked the lead time increased beyond acceptable limit and we switched back to contract 1, waiting for the queue size to decrease. We kept shuffling between the two contracts and optimizing the revenue stream. * Order Machine 3: Machine 3 became the new bottleneck and so one unit was purchased. (Please add some more decisions here)
The Term Paper on Discuss With Examples How The English Language Has Changed Over Time
Benjamin Martin stipulates that no language can ever be permanently the same, but will always be in a variable and fluctuating state. Every existing language undergoes change with time. To the advantage of human beings, these changes occur gradually. Had this not been the case, people would be faced with the task of relearning their native language almost every twenty years. As a result of these ...
Retrospection and Conclusion In the hindsight we were at first position for days 130-170 (approximately), however, we ended up at the 12th place. This means that some things we did right and there were some decisions that we should have taken but failing to do so has meant losing our first position. Strategies that worked for Us: * Correctly forecasted the demand in advance and planned accordingly. * We optimized the no. of machines at every stage to reduce our lead time to less than 0. 25 so that we can be at contract 2 for maximum possible time and earn revenue in excess of $1000 per contract. * We optimized the batch size.
Since there was no data for fix time and run time for machines we went for a trial and error approach and found that for a batch having 3 lots of 20 units each the utilization of machine 3 goes high and for a batch having 2 lots of 30 units each the utilization of machine 1 increases. This implied that the setup time on machine 3 was higher than that of machine 1. Since machine was $10000 cheaper than machine 3, we decided to buy more of machine 1 than machine 3 to improve the lead time. * The last step in the processing of the raw material was step 4 and so we decided to set the priority to step 4 at station 2.
This way we ensured that the contract gets processed faster thereby decreasing the lead time. The above strategies worked in our favor which is demonstrated from the fact that we earned on an average $1361 per contract from 90th-170th days. The graph shows cumulative and average revenues from 50th day onwards. Decision that should have been taken: * Machine Purchase: In the hindsight we believe that we should have bought atleast one more machine for station 3 because we missed out on producing more units of contract 2 and had increasing lead times leading to a decrease in revenues. We dint had any extra capacity and our machines got stretched during spikes as there was variability in the demand. Looking back, we realize that we should have accounted for this variability by having some amount of extra capacity, especially at station 3 which was stretched more. During the ending periods our lead times shot up but there was not that could have been done as capacity decisions are long term decisions and buying machine in the last periods would have resulted in a greater drop in revenues as we would not have been able to breakeven the cost of the machine.
The Essay on The Decision Making Process How Communication Is Important
Good decision making is an essential skill for career success generally, and effective leadership particularly. If you can learn to make timely and well-considered decisions, then you can often lead your team to spectacular and well deserved success. However, if you make poor decisions your organization can tumble. Regardless of the size of business you are in whether a large corporation, a small ...
