Production Performance Metrics

Production Performance Metrics

Cycle time Tc
Production rate Rp
Availability A
Production capacity PC
Utilization U
Manufacturing lead time MLT
Work-in-progress WIP
 Operation Cycle Time
Typical cycle time for a production operation:
Tc = To + Th + Tth
where Tc = cycle time, To = processing time
for the operation, Th = handling time (e.g.,
loading and unloading the production
machine), and Tth = tool handling time
(e.g., time to change tools)
 Production Rate
Batch production: batch time Tb = Tsu + QTc
Average production time per work unit Tp = Tb/Q
Production rate Rp = 1/Tp
Job shop production:
For Q = 1, Tp = Tsu + Tc
For quantity high production:
Rp = Rc = 60/Tc since Tsu/Q 0
For flow line production
Tc = Tr + Max To and Rc = 60/Tc
 Example problem
A batch production operation has a machine setup time of 3.0
hours and a processing time of 1.60 min per cycle. Two parts are
produced each cycle. No tool handling time is included in the
cycle. Part handling time each cycle is 45 sec. It consists of the
worker obtaining two starting work units from a parts tray,
loading them into the machine, and then after processing,
unloading the completed units and placing them into the same
tray. Each tray holds 24 work units. When all of the starting work
units have been replaced with completed units, the tray of
completed parts is moved aside and a new tray of starting parts
is moved into position at the machine. This irregular work
element takes 3.0 min. Batch quantity is 2400 units. Determine
(a) average cycle time, (b) time to complete the batch, and (c)
average production rate.
 Example problem
A flow line mass production operation consists
of eight manual workstations. Work units are
moved synchronously and automatically
between stations, with a transfer time of 15 sec.
The manual processing operations performed at
the eight stations take 40 sec, 52 sec, 43 sec, 48
sec, 30 sec, 57 sec, 53 sec, and 49 sec,
respectively. Determine (a) cycle time for the
line, (b) time to process one work unit through
the eight workstations, (c) average production
rate, and (d) time to produce 10,000 units.
 Production Capacity
Defined as the maximum rate of output that a
production facility (or production line, or group
of machines) is able to produce under a given set
of operating conditions
When referring to a plant or factory, the term
plant capacity is used
Assumed operating conditions refer to:
Number of shifts per day
Number of hours per shift
Employment levels
 Plant Capacity
Simplest case is quantity production in which
there are:
n production machines in the plant and they
all produce the same part or product
Each machine produces as the same rate Rp
PC = n Hpc Rp
where PC = plant capacity for a defined period (e.g.
a week), Hpc = number of hours in the period being
used to measure plant capacity, hr/period
 How to Adjust Plant Capacity
Over the short term:
Increase of decrease number workers w
Increase or decrease shifts per week
Increase or decrease hours per shift (e.g., overtime)
Over the intermediate and long terms:
Increase number of machines n
Increase production rate Rp by methods
improvements and/or processing technology
 Availability

Availability = proportion uptime of the

equipment MTBF MTTR
A
MTBF
Availability:

where MTBF = mean time between failures, and

MTTR = mean time to repair
 Availability

Key: MTBF = mean time between failures, MTTR = mean time to repair.
 Utilization
Defined as the proportion of time that a
productive resource (e.g., a production
machine) is used relative to the time available
under the definition of plant capacity
 Example problem
There are ten machines in the automatic lathe section of a certain
machine shop. The setup time on an automatic lathe averages 5
hours. Average batch size for parts processed through the section is
100. Average operation time = 9.0 minutes. Under shop rules, an
operator can be assigned to run one or two machines. Accordingly,
there are five operators in the section for the ten lathes. In addition
to the lathe operators, there are two setup workers who perform
only machine setups. These setup workers are busy the full shift.
The section runs one 8-hour shift per day, 5 days per week. Scrap
losses are negligible and availability = 100%. The production control
manager claims that the capacity of the section should be 2000
parts per week. However, the actual output averages only 1600
units per week. What is the problem? Recommend a solution.
 Manufacturing Lead Time
Defined as the total time required to process a
given part or product through the plant,
including any time for delays, material
handling, queues before machines, etc.
MLT = no (Tsu + QTc + Tno)
where MLT = manufacturing lead time, no =
number of operations, Tsu = setup time, Q =
batch quantity, Tc cycle time per part, and Tno
= non-operation time
 Work-In-Process
Defined as the quantity of parts or products
currently located in the factory that either are
being processed or are between processing
operations

WIP = Rpph (MLT)

where WIP = work-in-process, pc; Rpph = hourly plant

production rate, pc/hr; MLT = manufacturing lead
time, hr
 Example problem
On average 16 new batches of parts are started through a certain plant
each week. Average batch quantity is 50 parts that are processed through
a sequence of seven machines. Setup time per machine per batch
averages 4 hours, and average operation time per machine for each part
is 12 min. Nonoperation time per batch at each machine averages 8
hours. There are 37 machines in the factory. Any machine can be set up
for any type of batch processed in the plant. The plant operates 40 hours
per week. The plant manager complains that almost 65 hours of overtime
must be authorized each week to keep up with the production schedule.
Determine (a) manufacturing lead time for an average order, (b) weekly
production capacity of the plant if all machines were operated at 100%
utilization, (c) current utilization of the plant, and (d) average work-in-
process (number of parts) in the plant. (e) Why must overtime be
authorized to achieve the desired output?