1. © 2009 BMA Inc. All rights reserved

3.  Capacity analysis provides an overview of how effectively you use time in each cell.  The time is categorized as either:  “Productive Capacity” – making “good” parts;  “Non-Productive Capacity” – time lost to non value-adding activities;  “Available Capacity” – time available for use.  Total Available time (seconds) = Number of shifts run per day x Crew per shift x (hours worked per shift x60 x 60) x Working days in week x 3,600 seconds

4. © 2009 BMA Inc. All rights reserved  Productive time is: Number of "good quality" parts produced x average cycle time (seconds)  Productive Capacity = productive time/ total available time x 100%  Non-Productive time is:  Time lost to scrap (seconds) = quantity scrapped x average cycle time (seconds)  Time lost to downtime (seconds)  Time lost to changeovers (seconds)  Time in meetings/ 5S (seconds)  Non-Productive Capacity = Non-Productive time/ total available time x 100%  Available Capacity = 100% - (Productive Capacity + Non- Productive Capacity)

5. © 2009 BMA Inc. All rights reserved  You are the management team of the Universal Valve Company.  The Plastics Value Stream at the Universal Value Company comprises four cells.  Weekly cell performance measures have been established for each cell and a box score has been implemented for the Value Stream. This data is given on the next slide.  Your task:  Calculate the capacity of each cell in the Value Stream.  What capacity figures would you use in your Value Stream box score ?

6. © 2009 BMA Inc. All rights reserved

10.  Things move fast in the Plastics Value Stream and in Week 29, improvement activity has already generated a number of improvements:  Average set-up time has been reduced by 75%, though the number of set-ups has increased to allow smaller batches.  Improvements in standard work have improved the first time through in each cell (reducing scrap).  On-Time delivery has improved.  Downtime has been reduced.  Your task:  Calculate the impact of the improvements - Capacity in each cell; and Box Score: impact of reduction in scrap. No other costs are saved at this time.

11. © 2009 BMA Inc. All rights reserved

15.  In Week 30, your sales team comes to you with an immediate order for an additional 10,000 pieces at $1.50 per piece. Should you take the order ?  A member of staff is redeployed from the Machining Cell to Assembly to provide the necessary capacity. This has no cost impact.  Your task:  Calculate the impact of the improvements - Capacity in each cell; and Box Score: additional sales.

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20.  In Week 31, you make further improvements. Scrap and downtime are further reduced, and improvements are made to set-up times and downtime.  You are able to reduce the amount of space that the Value Stream occupies - resulting in a 20% reduction in energy costs.  Your sales team approach you with an opportunity for further sales of 20,000 pieces at $1.50 per piece. This would entail employing 4 additional staff in the Assembly cell at a total additional cost of $5,000 per week.  Your task:  Calculate the impact of the improvements - Capacity in each cell; and box score.

21. © 2009 BMA Inc. All rights reserved

25.  In Week 32, you have the option of making some radical transformation:  You can either combine cells 1 and 2; or combine cells 3 and 4. For resourcing and technical reasons you cannot make both changes.  Either change will improve FTT, cycle times, and OTD; and will reduce space and energy costs. There will be no impact on sales.  Your task:  Decide which change should you make.  Calculate the impact of both improvements and choose which is the best to make first. Review the impact on capacity in each cell; and the Box Score.

26. © 2009 BMA Inc. All rights reserved