Dupont Process Analysis and Kpi Tree

...

4. Do you recommend changing the process, why or why not? Be specific.

I’m sure the answer is yes, but the numbers I computed did not accurate in relation to the final ROIC (I’m sure I probably did the process wrong). The bottleneck in section 2 is too big, a change in the process is required.

Note: Your process analysis should include the current state and the revised state. You’ll need to find:

- Process capacity The process capacity is always equivalent to the capacity of the bottleneck. Current: 3/75 = 25, 25/60 = 2.4 per hour. New system: 5/75 = 15, 15/60 = 4.

- Flow time Current: 130 minutes (They currently make 1 sail every 24.8 minutes). New System: 130 minutes (They would make 1 sail 17.1 minutes).

- Location of bottleneck station 2, sewing

- Cycle time Production time available per day/Units required per day = 8 hr per day/19.32 units per day = 2.42 units per hour (new demand means: 8/28 = 3.5 units per hour)

- Utilization of each activity = flow rate/capacity. Current: (station 1 = 2.4/15 = 6.25, station 2 = 2.4/25 = 10.4, station 3 = 2.4/16 = 6.66, station 4 = 2.4/12 = 8.75). New system: (station 1 = 4/15 = 3.75, station 2 = 4/15 = 3.75, station 3 = 4/13.3 = 3.32)

- Labor utilization Current: 7 x $35 = $245 per hour x 8 = $1,960 per day / 19.36 sails made per day = $101 in wages per sail made. New system: 9 x $35 = $315 per hour x 8 = $2,520 per day / 28 sails made per day = $90 in wages per sail made.

- Current output and forecasted output 97 sails, 140 sails

- TakT of forecasted demand 140/5 days = 28 sails per day

- Recommended number of stations for the process, before and after the process change Before: 4, After: 3