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Case Study: New England Foundry

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Analysis of New England Foundry

In this analysis of New England Foundry we need to make a comparison with each of the models or layouts, the first combined counter with the new mentioned model with separated counters, for the determination of time saved with the new layout and then the amount that could be saved per hour with the same. For the layout with combined counter there is 2 servers with a single waiting line, the queuing model that is being used is the M/M/s, because of this queuing pattern consists of single phase and multiple servers. The arrival rate of 7 (4+3) per hour and service rate of 5per hour, which gives the average time in the system W=0.3922hours or 23.53minutes (refer to Excel) the time taken per trip is as follows:
For maintenance people it will be 23.53+6 (walking time taken) =29.53minutes.
For molding people 23.53+2= 25.53minutes.
For the new layout with separate counters, Bob for the maintenance shop and Pete for pattern shop both of them follow M/M/1 model with single-server and single-waiting line.
Bob providing for the maintenance people, serves 6per hour at an arrival rate of 4per hour, giving the average time in the system W=0.50hours or 30minutes(shown in A5) with the time taken for trip is 2minutes 30+2=32minutes, this is an increase of time, 2.47minutes compared with the other layout for maintenance dept.
Pete serving the molding people, serves 7per hour at an arrival rate of 3per hour, giving the average time in the system W=0.25hours or 15minutes(shown in A6) with the time taken for trip is 2minutes 15+2=17minutes, this is a decrease in time, 8.53minutes for the molding dept.

For identifying the amount saved per hour in the factory:
The maintenance person is paid $9.50per hour, the loss of 2.47 minutes, [(2.47/60) ($9.50)] = $0.39, cost them 0.39 cents per trip.
The molding person is paid $11.75 per hour, the saving of 8.53 minutes [(8.53/60) ($11.75)] = $1.67, saves them $1.67 per trip.
Therefore the net saving in the factory will be $1.67-$0.39=$1.28 per trip. This would be quite an astounding savings over time and well worth the small change in design.

References Render, B. E., Stair, R. M., & Hanna, M. E. (2012). Quantitative analysis for management (14th ed.). Upper Saddle River, NJ: Prentice Hall.

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