Jai Hind Cycles Inc Matt Zbylut Mike Rosenthal Christian Mickelson Todd Madole

Background Jai Hind Cycles produces bicycles and is planning on introducing a new model of mountain bike strictly for the export market. Jai Hind Cycles produces bicycles and is planning on introducing a new model of mountain bike strictly for the export market. The company currently runs one shift per day and is considering replacing their existing factory layout with a cellular, group technology layout. The company currently runs one shift per day and is considering replacing their existing factory layout with a cellular, group technology layout.

Assumptions Production at 82,000 units would be interpreted as 328 bikes a production day Production at 82,000 units would be interpreted as 328 bikes a production day Of those 328 bikes, 200 would be regular bikes and 128 would be mountain bikes Of those 328 bikes, 200 would be regular bikes and 128 would be mountain bikes 250 work days/year; 2080 work hours/year; 8 hour work days 250 work days/year; 2080 work hours/year; 8 hour work days Anything not produced is sub-contracted or purchased from the market for the final assembly Anything not produced is sub-contracted or purchased from the market for the final assembly In the proposed cellular model, decreasing process time is the equivalent of adding machines/capacity. In the proposed cellular model, decreasing process time is the equivalent of adding machines/capacity. The processing of handlebars for each bike takes a similar amount of time due to restrictions of the software. The processing of handlebars for each bike takes a similar amount of time due to restrictions of the software. A 100 hour warm-up period was used to reach steady state. A 100 hour warm-up period was used to reach steady state.

As-Is Model Building the current layout began by determining how to divide the bill of materials into different locations. Building the current layout began by determining how to divide the bill of materials into different locations. It was necessary to determine the processing times for each entity and its flow through the shop. It was necessary to determine the processing times for each entity and its flow through the shop. It was determined that there would be four assembly stations. There is a frame, seat post, handlebar, and drive chain assembly station. It was determined that there would be four assembly stations. There is a frame, seat post, handlebar, and drive chain assembly station. Using a 100 hour warm-up period and an 8 hour run-time we were able to produce 259 complete bikes. Using a 100 hour warm-up period and an 8 hour run-time we were able to produce 259 complete bikes.

As-Is Model

To-Be Model Due to the limitations of the student model it became necessary to black box each cell and compute the processing times for each entity at each process. Due to the limitations of the student model it became necessary to black box each cell and compute the processing times for each entity at each process. Each cell is responsible for producing either a frame, seat assembly, drive assembly or handle bar assembly. Each cell is responsible for producing either a frame, seat assembly, drive assembly or handle bar assembly.

To-Be Model

Recommendations Jai Hind Cycles Inc. should stay as a job shop as demand increases to 82,000 bikes/year. Jai Hind Cycles Inc. should stay as a job shop as demand increases to 82,000 bikes/year. The cost of implementing a cellular system would be great The cost of implementing a cellular system would be great Addition of multiple machines and cells Addition of multiple machines and cells The To-Be model was compared to a job shop model that produced both mountain and regular bikes. The job shop required no additional machines to meet the new demand The To-Be model was compared to a job shop model that produced both mountain and regular bikes. The job shop required no additional machines to meet the new demand

Questions