Natural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural BlendsNatural Blends Part B 4a.

How often during an 8-hour workday would you have a setup change in the extraction process (e. g. , how often would you changeover to another size orange)? Since we also need to replace the filter every 90 minutes which adds another 30 minutes to overall downtime, it makes sense then to try to minimize as much idle time as possible by coordinating when the bin has to be changed at EXTRACTION with the filter change at FILTRATION.In order to meet the processing requirements; each orange size must be processed at least once per day, and all three sizes must be processed equally during the week.

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If we change the bin (4) times each day with one size twice per day for the 6 days, we can satisfy both requirements. What’s more since we are limiting the total downtime by coordinating each bin change every 90 minutes with every filter change, we maintain the (2) hour downtime with no difference in processing time each week.Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Bin Change Sequence {S,M,L,S} {M,L,S,M} {L,S,M,L} {S,M,L,S} {M,L,S,M} {L,S,M,L} Using the sequence above, we are changing bins sizes (4) times per day. If we coordinate all (4) of our bin changes at 90 minute intervals with each filter change at the same time interval, we spend 20 minutes changing the bin to a different size, at the same time the filter is being changed. What happens here is that our EXTRACTION downtime is 20 minutes + 10 minute idle time (while we wait for the filter to be changed) over 30 minutes.EXTRACTION FILTRATION Time: 90 minute run-time Downtime + (idle): 20 minutes + 10 minutes Total time: 120 minutes Time: 90 minute run-time Downtime: 30 minute Total Time: 120 minutes Since we’ve maintained a 6-hour run-time, our production rate also remained the same at 18,000 pounds per hour. 4c. What quantity of oranges of a particular size would you process before switching to another size? Since our production rate hasn’t changed at 18,000 lbs per hour, and we chose to change the bin (4) times per day, the quantity processed is: 27,000 lbs per bin.

0 minute (1. 5 hours) run time X 18,000 pounds per hour = 27,000 lbs per bin 4d. What was the total amount of juice concentrate you can process through the three process steps (two through four) in one 8-hour workday? Again, since we’ve maintained total output @ 18,000 lbs per hour by coordinating our bin changes with filter changes, and total run-time of 6 hours (8 hours per day – 2 hours downtime), the total output via steps 2-4 is: 108,000 lbs per day. 18,000 lbs per hour X 6 hours = 108,000 lbs per day PART C 5.How much time does it take for the blending operation to process one 8,000-pound order from Company A? In order to accommodate the order from Company A, a 40-minute BLENDER setup must take place (assuming the setup for this order was not preempted at the end of the previous day).

Also, since we are no longer constrained by the 18,000 lb per hour CONCENTRATOR because of the buffer placed between the CONCENTRATOR and the BLENDER we can process this order @ 22,000 lbs per hour. As a result this order can be processed in: ~ 62 minutes. ,000 lb order/ 22,000 lbs per hour X (60 minutes) + 40 minute setup time = 51. 8 minutes 6. Which set of contracts in Table A would you recommend that Natural Blends accept? Contract C and D are recommended. C has the highest contribution per week ($9,360): 15 (orders per week) X 24,000 (lbs per order) = 360,000 lbs per week $.

026 (contribution per lb) X 360,000 lbx per week = $9,360 Considering the total processing time per week ratio for C as a factor we get: 9,360/ 600 (total setup time) + 982 (total run time) = 1582 ,360/ 1582 = 5. 91 Contribution per minute Contract D: 10 (orders per week) X 18,000 (lbs per order) = 180,000 lbs per week $. 024 (contribution per lb) X 180,000 lbs per week = 4,320 4,320/ 400 (total setup time) + 491 (total run time) = 891 4,320/ 891 = 4. 8 Contribution per week 7.

Once again, management is considering improvements, but this time to the entire system. Which of the following improvements would you recommend to maximize the output of this plant? Why?Reducing the blending setup time from 40 to 30 minutes @ a cost of $50,000 seems to make the most sense. Choice (d) increases capacity @ the BLENDING stage by reducing processing time of orders coming in. What’s more, (d) increases overall capacity to 648,000 lbs per week. If we look at the other choices like (b) for example, does not really help because it did not increase capacity. Choice (c) reducing the filtrations setup time from 20 minutes to 10 increases capacity by 31,074 pounds per week at a cost of $20,000.