BUSOBA 3230: Pencil Pusher Case

Before starting,

• label the triangles.

• Raw Material (RM), Work In Progress (WIP), and Finished Goods (FG).

Also, before starting,

label the bottom of the graph with Days of Inventory (DOI) (top part), Processing Time (PT) (bottom part).

Across from DOI,

put the label Lead Time.

Across from PT,

put the label PT.

PT is the

SAME throughout the ENTIRE graph.

FTE means

full time equivalent.

Even though the graph shows 4 steps, it's actually

5 steps, starting in the upper right corner with finding Customer Demand and Takt Time.

Customer Demand is the same as

Demand Per Day.

To solve for Demand Per Day,

divide the two (demand and days).

A demand ex. is the following:

…receives orders for _ number of items…

Available Time Per Day =

• Shift * Hours * Minutes * Sec
• May or may not look like the above.
• Multiplying by minutes or seconds may be due to converting.

Will have to solve for DOI, then

put answers on DOI line.

Step 1, 2, etc. on the graph are

• processing steps.
• Must find what is listed.

People and FTE may be

the same sometimes.

Processing Time is similar to

Time/Items.

Utilization must be a %. So, multiple by 100.

• %.
• So, multiple by 100.

After each step, you must FIRST

• figure out the inventory/WIP/DOI after (step 1, 2, etc.)
• DOI is the MOST IMPORTANT thing to figure out.

After figuring out DOI, solve for

the next step (1, 2, etc.)

Despite saying "_ number of people work in this department; each operating one of _ number of machines", it's

still the same number for BOTH People and FTE.

Saying "it takes an average of _ number of seconds for each group of _ number of items to be processed through this machine" means you

must factor in batch size.

When batch size is mentioned, you must

multiply it by FTE to find resources. If not, just use FTE as resources.

May need to multiply People by % of time working to

find FTE.