BUS644 Operations Management / Beck Manufacturing

Beck Manufacturing

Al Beck, president of Beck manufacturing, wants to determine the capacity of his facility, which

produces steering gears for auto manufacturers. He has asked you to sort through the data and

determine the capacity of the system and how that capacity may be increased. The operation is a

product layout that produces large numbers of nearly identical products. The process includes milling,

grinding, boring, drilling, and assembling, in that order. Each finished product requires one operati on on

each type of machine. For example, each finished part is processed on one of the five milling machines, one of the seven grinding machines, etc.

The facility runs two 8-hour shifts per day, with a third shift for maintenance. The industrial engineering

department has provided you with the following data on present operations. In addition, you have been

told that assembly operations, while not unlimited, can be easily changed to meet the need.

Operation Number of Machines Run Time per Piece (min.) % Reject Rate

Milling 5 2 3

Grinding 7 3 5

Boring 3 1 2

Drilling 6 2.5 7

Calculate the capacity of each machine center and the capacity of the system.

If Beck wants to expand capacity, where should he focus the company's eff orts?

How much extra capacity can he get without causing another operation to become the bottleneck?

How may Mr. Beck expand capacity without purchasing new equipment? Be specific.