Business Studies

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 isa product layout that produces large numbers of nearly identical products. The process includes milling, grinding, boring, drilling, andassembling, in that order. Each finished product requires one operation on each type of machine. For example, each finished part is processedon 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 thefollowing data on present operations. In addition, you have been told that assembly operations, while not unlimited, can be easily changed tomeet the need.

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

Milling    5    2       3

Grinding    7    3       5

Boring    3    1       2

Drilling    6    2.5       7

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

2.    If Beck wants to expand capacity, where should he focus the company’s efforts? How much extra capacity can he get without causing anotheroperation to become the bottleneck?

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