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Stonehaven Case Analysis

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Stonehaven Case Analysis
Stonehaven, Inc.
Case Analysis

March 19, 2013

Part A
For this part of the analysis, consider each department in the Gdansk factory in isolation. Assume that the rest of the production system has no impact on the department you are considering. Assume that material handling times are negligible and ignore variability in processing times.

1. For the typical 100-pair batch, what is the daily capacity and manufacturing lead time within each of the following departments?

a. Cutting

8 hrs/day x 60 min/hr = 480 min/day

Machine 1 = (0.05 x 4)(100) + (5.25 x 4) = 41 min/batch
Machine 2 = (0.05 x 4)(100) + (5.00 x 4) = 40 min/batch
Machine 3 = (0.04 x 4)(100) + (4.00 x 4) = 32 min/batch

Manufacturing Lead Time (MLT) = Since the machines work simultaneously, the MLT is 41 min/batch.

Capacity = 480 min/day ÷ 41 min/batch = 11.7 batches/day x 100 pairs/batch = 1170 pairs/day

b. Stitching

8 hrs/day x 60 min/hr = 480 min/day

Group 1 = (100/4) x 5.0 = 125 min/batch
Group 2 = (100/3) x 3.0 = 100 min/batch
Group 3 = (100/2) x 2.5 = 125 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 5.0 min + 3.0 min + 125 min = 133 min/batch.

Capacity = 480 min/day ÷ 125 min/batch = 3.84 batches/day x 100 pairs/batch = 384 pairs/day

c. Lasting

8 hrs/day x 60 min/hr = 480 min/day

Station 1 = 100 x 0.7 = 70 min/batch
Station 2 = 100 x 0.6 = 60 min/batch
Station 3 = 100 x 1.0 = 100 min/batch
Station 4 = 100 x 0.9 = 90 min/batch
Station 5 = 100 x 0.3 = 30 min/batch

Manufacturing Lead Time (MLT) = Because the components can’t move to the next group until the previous group is finished, the MLT is 0.7 min + 0.6 min + 1.0 min + 0.9 min + 30 min = 33.2 min/batch.

Capacity = 480 min/day ÷ 100 min/batch = 4.8 batches/day x 100 pairs/batch = 480 pairs/day

Assumptions: My calculations are based on the assumption that the stamp

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