Hi-Ho Yo-Yo, Inc.
Hi-Ho Yo-Yo, Inc. 1
Hi-Ho Yo-Yo, Inc.
BUS 644
Hi-Ho Yo-Yo, Inc. 2
First we must incorporate priority rules. Priority rules are regulations which determine in which succession the orders in front of a production line should be worked (Stevenson 2011, p. 712). In deciding what priority rules to acclimate, an organization such as Hi-Ho Yo-Yo, Inc. should achieve the following objectives:
1. Meet due dates of the customers if the product goes directly to them or the downstream operations if the product is but an input of another.
2. Minimize the time the order spends within the process including wait time.
3. Minimize work-in-process inventory which inevitable ties resources which can otherwise be used in more productive activities.
4. Minimize idle time of both machine and human resources.
Given these objectives, Hi-Ho Yo-Yo, Inc. can choose from different priority rules and some of the most popular are as follows: (Retrieved from table 16.2, Stevenson 2011, p. 712).
First Come First Serve If Hi-Ho Yo-Yo, Inc. chooses this method to decide how the 5 orders are lined up, this will mean that the first order received will be processed first. The following table shows how this choice measures according to different measures of effectiveness:
Job Date Order Received Set-Up Time (days) Production Time (days) Total Processing Time Flow Time Due Date Delays
A 6/4 0.25 6 6.25 6.25 11 -
B 6/7 0.50 2 2.50 8.75 8 0.75
C 6/12 0.25 8 8.25 17.00 25 -
D 6/14 0.50 3 3.50 20.50 19 1.50
E 6/15 0.50 9 9.50 30.00 26 4.00 Total 30.00 82.50 6.25
Hi-Ho Yo-Yo, Inc. 3
Average completion time 16.50 days
Utilization 36.36%
Average no. of jobs 2.75
Hi-Ho Yo-Yo, Inc.
BUS 644
Hi-Ho Yo-Yo, Inc. 2
First we must incorporate priority rules. Priority rules are regulations which determine in which succession the orders in front of a production line should be worked (Stevenson 2011, p. 712). In deciding what priority rules to acclimate, an organization such as Hi-Ho Yo-Yo, Inc. should achieve the following objectives:
1. Meet due dates of the customers if the product goes directly to them or the downstream operations if the product is but an input of another.
2. Minimize the time the order spends within the process including wait time.
3. Minimize work-in-process inventory which inevitable ties resources which can otherwise be used in more productive activities.
4. Minimize idle time of both machine and human resources.
Given these objectives, Hi-Ho Yo-Yo, Inc. can choose from different priority rules and some of the most popular are as follows: (Retrieved from table 16.2, Stevenson 2011, p. 712).
First Come First Serve If Hi-Ho Yo-Yo, Inc. chooses this method to decide how the 5 orders are lined up, this will mean that the first order received will be processed first. The following table shows how this choice measures according to different measures of effectiveness:
Job Date Order Received Set-Up Time (days) Production Time (days) Total Processing Time Flow Time Due Date Delays
A 6/4 0.25 6 6.25 6.25 11 -
B 6/7 0.50 2 2.50 8.75 8 0.75
C 6/12 0.25 8 8.25 17.00 25 -
D 6/14 0.50 3 3.50 20.50 19 1.50
E 6/15 0.50 9 9.50 30.00 26 4.00 Total 30.00 82.50 6.25
Hi-Ho Yo-Yo, Inc. 3
Average completion time 16.50 days
Utilization 36.36%
Average no. of jobs 2.75
References: Stevenson, W.J. (2011). Operations management (11th ed). New York, NY: McGraw Hill/Irwin