108,000 pounds of orange juice concentrate can be produced in an 8-hour period. The system can produce 18,000 per hour and then the system needs to be shutdown for 30 minutes to change the filter and restart the system. In a 2-hour block 90 minutes is productive while 30 minutes is used to change the filter and restart the system. Therefore in a 2-hour block 27,000 (18,000 + 9,000) pounds of concentrate can be produced. Then when you take the 27,000 pounds and multiply by 4 (8 hours/2 hour blocks) equals 108,000 pounds of concentrate can be produced in an 8-hour period.
During an 8 hour period there would be a total of 2 hours of idle time. There would be a total 4 intervals of 30 minutes each that would be idle. 480 (total minutes) – (90 (process time) x 4 (cycles) = 120 (2 hours)
Adding an additional 3000 pounds of storage capacity at #4 juice concentration would benefit the process the most. In step 3 the system is able to produce 20,000 pounds and hour, so 30,000 every 2 hours factoring the 30 minutes of idle time. Step 4 is only able to produce 18,000 per hour so only 27,000 is being produced while the other 3,000 is not being produced due to capacity constraints.
By increasing the capacity by 3000 pounds, step 4 would be able to produce the entire allotment produced in step 3. Therefore an additional 12,000 can be produced by increasing the capacity; 3000 pounds x 4 cycles = 12,000 pounds. Now the total would be 120,000 (108,000 + 12,000). The system can be more productive when the filtration system has downtime during the filter change and restart motion.
Adding Storage: 3000 pounds x $30 per pound = $90,000
Reducing setup time by 50%: Currently the productive time is 1.5 hours every 2 hours and idle .50 hours. By reducing the setup the productive time changes to 1.75 and idle is .25. In the previous setup the number of cycles in an 8-hour day was 4. 8 hours/1.75 (productive) = 4.57 cycles per day.
4.57 x 18,000 pounds x 1.50 = 123,390 pounds produced per 8-hour shift. Adding storage and reducing setup time would greatly benefit the company while increasing throughput and reducing on hand inventory.
$90,000 (storage)/ 12,000 (3,000 x 4 cycles) pounds = $7.50/ increased pound. Idle time total by reducing setup time totals 60 minutes and if we were to produce more we would have an addition 45 minutes of productive time (60 idle- 15 setup). Then we can take 45 (.75) minutes x 18,000 pounds (per hour) and an additional 13,500 pounds could be produced per day.
$20,000 (reduced setup)/ 13,500 pounds – $1.46/ increased pound $90,000 (storage) + $20,000 (reduced setup) = $110,000
12,000 pounds (increased storage) + 13,500 (reduced setup) = 25,500 pounds $110,000/25,500 pounds= $4.31 per pound of increased production.
In this example I am under the assumption that when the shift would start that a setup change would be needed. Therefore if all of the orange sizes need to be produced that means it will need to be changed 3 times. So that would mean 1 hour (20 minutes x 3 changes) would be needed in a typical 8-hour shift.
Each orange size would require a 20-minute change during the 8-hour shift. We must produce an equal amount at the end of the week, but day-to-day the amounts can vary. However since each size of orange needs to be produced each day, that means no matter where we are in volumes of each size we would need to change setup 3 times per day as each orange size would need to be produced.
Since we can run 3 full 90 minute cycles plus an additional 1 hour cycles we can do one 90 minute cycle of each and rotate each day which size gets the additional 1 hour of cycle time. To make this easier each day a different size can start the process; for example Monday may start with large, Tuesday medium and Wednesday small.
It appears that 99 pounds of orange juice concentrate can be processed during an 8-hour shift. There would be 3 90 minutes blocks in which 27 pounds can be produced in each. In addition to that an additional 1-hour is used for 18,000 pounds. 1.5 hours (3) + 1 hour + 1 (setup change) + 1.5 (filter change) totals 8 hours. 27000 pounds x 3 cycles totals 81,000 pounds. We then add the 1-hour of production, which yields 18,000 units, and add it to the 81,000. In total 99,000 pounds of orange juice concentrate can be produced given the facts in this scenario.