Beck Manufacturing Plant Capacity

Topics: Capacity utilization, Manufacturing, Machine Pages: 5 (1361 words) Published: December 22, 2014


Beck Manufacturing & Plant Capacity

Pete Garcia

BUS644: Operations Management
October 26, 2014
Dr.: Gail Hoskyns-Long
Ashford University

Beck Manufacturing & Plant Capacity

Introduction
In this paper, we will focus on the case study, which discusses about the plant capacity and Beck Manufacturing. In addition, after reading the case study it becomes evident that we need to help Beck’s Manufacturing, president in making the best decision possible in regards to determining his facilities capacity. Therefore, we need to note that Beck’s Manufacturing is a major producer of steering gears in the auto industry. Nevertheless, we also need to know how the manufacturing process is being done, thus allowing us to answer and identify our case study questions. Thus, first, we must calculate both the capacity of the system, along with the capacity of each machine. Second, identify any alternative measures where, Beck can expand his capacity initiatives, in order to gain a positive capacity gain, without causing another bottleneck incident in the operations side. Third, establishing a strategy where Mr. Beck does not have to buy more equipment in order to increase his capacity. Furthermore, let us answer these fundamental questions, while helping Mr. Beck feel confident in his new strategies to incorporate to Beck Manufacturing. In accordance, to our text, in order to be able to identify each machines center, along with calculating the system using the detailed data provided, we must connect other key factors before coming to any conclusions. Beck’s Manufacturing includes assembling, drilling, milling, grinding and boring. Thus, we also need to know that each type of machine requires each finished product to adhere to one operation. Another, important key is knowing that each facility has a two 8-hour shifts per day, but this doesn’t include a maintenance shift which is postponed to in the third shift. “Capacity is a measure of an organization's ability to provide customers with the demanded services or goods in the amount requested and in a timely manner. Capacity is also the maximum rate of production” (Vonderembse, & White, pp 8.1, 2013). The data table that we need is as follows: Operation

Number of Machines
Run Time per Piece (Minutes)
% Reject Rate
Milling
5
2
3
Grinding
7
3
5
Boring
3
1
2
Drilling
6
2.5
7
The Milling Capacity
Moving forward, using the data above, now can allow us to calculate the capacity of each machine and system. Thus, to start let us begin by identifying the operating time into minutes. Since, we know that Beck runs a two 8-hour shift; it gives us a total of 16 hours daily. Therefore, there are 60 minutes in an hour, if we have a total of 16 hours daily; this gives us a total of 960 minutes. The Milling’s operation can produce in two minutes run time per piece, thus one machine can manufacture 480 units per machine. Since, there are 5 machines total, a total of 2400 units can be manufactured combined. In the Milling’s case, there is a 3% reject rate, meaning that it might not be approved or it will be rejected in regards to following standards. This will drop the total to 2328, because the reject rate of 3% equals 72. “It is shown that demand and capacity decisions do indeed impact on each other - sometimes in ways that are not initially obvious. Results provide useful thought-starters for service managers striving to improve their operations” (Klassen, & Rohleder, 2002). The Grinding Capacity

The next source includes, the Grinding Capacity, which its run time is 3 minutes per piece, giving us a total of 960 minutes, therefore per machine it can produce 320 units. In addition, let us keep in mind that there are a total of 7 machines, thus giving us a total of 2,240 units. In addition, the Grinding has a 5% reject rate, thus the total units are 112. Now, if we can subtract 2,240 units from all...
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