Instructions and other info
Additional facts
Each of the four lines are configured and staffed the same way with the same machinery and % utilization. Lines 1 and 2 are in the same part of the plant and from centerline to centerline are 40 feet apart. Trays can be loaded from either side of the line and from the front end of the line. Carton and film machines and case packers can be left or right handed machines meaning they can both be fed between the lines. Component placers are split with two on each side of line. There are cross overs ~every 30 ‘ to move from one side of the line to the other. Lines 3 and 4 are configured in this same manner but are located approximately 150’ from Lines 1 and 2. Job combinations can occur in several different ways.
1. Jobs can be eliminated entirely with proper justification but must be supported by facts
2. Jobs can be combined within the same line.
3. Jobs can be combined between Lines 1 and 2 or Lines 3 and 4. Assume if Line 1 and 2 can combine so can Lines 3 and 4
4. Jobs can be combined between three or four lines.
At no time can an employee be utilized over 100%. When moving within a line assume .5 seconds per foot traveled. If you move 10 feet the travel time would be 5 seconds to new location and 5 seconds return. When traveling between two adjacent lines this also applies. If you must change out gloves assume one minute and if you must change uniform assume 20 minutes. If you move from the Line 1 and 2 area to Line 3 and 4 area assume a minimum of three minutes travel time each way. If a cross over is needed asume an additonal 30 seconds in additon to the time per foot.
When calculating savings assume each line runs 250 shifts per year on 1st shift and 250 shifts per year on second shift. Total of 2000 annual shifts. Assume an average hourly rate per employee is $17.50 per hour with a fringe rate of of 150%.
A video will be provided in D2L with additional details and examples. The jobs I would look at as candidates for improvement are Tray machine area, Film machine related, Case packing and stacking, Carton machine area, Component placers, Prep employees, QA inspectors, Weight control, and any other areas you may think are feasible. Hint: In some areas there may be more than one way to make a combination although one methodology may be better than the other. Also, not all the areas mentioned above have an opportunity with a reasonable chance of success. Make sure to read the info in the Special notes column especially the ones that are color coded.
Line 1
Job #
Job title
Job description
% Utilization
Frequency
Distance from Tray denester (front of line)
Special Notes
Hours worked per day
1
Lead person
Directs employees, gives breaks, orders supplies and any other tasks as needed
100%
varies
Can be used to fill short term emergency vacancies
9
2
Tray machine operator
Feeds trays into denester
33%
Feeds trays once every 3 minutes. One minute to completely reload the magazines. Can be topped off at any time
1 ‘
Cannot handle food products without changing gloves
8.2
3
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
4
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
5
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
6
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
7
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
8
Component placer
Adds component to tray
82%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
9
Inspect for missing component
Add to or remove trays with missing components
80%
37′
Cannot change lines without changing uniform
8
10
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
11
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
12
Film machine operator
Reloads film spindle, splices onto existing roll, removes doubles from splice, rotates spindle, removes spent roll, discards spent roll.
25%
It takes 2 minutes to perform duties every 8 minutes. The actual splicing and changing of the roll takes 45 seconds and the rest of the time is in set up and support fuctions The total of 2 minutes does not have to occur consecutively. Once the splice is made, the rejects created can be dealt with immediately or before the next splice is made. removal of the old roll and reloading the new roll on the spindle works the same way.
45′
Cannot handle food products without changing gloves
8.2
13
Film machine inspector
Looks for loose seals and removes as needed
80%
varies constantly during shift
49′
8
14
Carton machine operator
Reloads flat cartons into machine
20%
30 seconds to reload every 150 seconds. Machine can be topped off at any time. The magazine does not have to be completely empty.
56′
Cannot handle food products without changing gloves
8.4
15
Final inspector
Removes open, unsealed or damged cartons
60%
varies constantly during shift
61′
8.4
16
Wgt control
Continually monitors weights of product, adjusts machine settings as needed, produces control charts for 6 sigma program
75%
varies
Can be used in an emergency but every minute this job is unfilled it costs you money
8.4
17
Quality Control inspector
Checks component weights every 60 minutes, total weights every 20 minutes and verifies day coding information every two hours. Maintains the official USDA complance records for weight. Required to do re checks if weights are too low and place hold tags when needed. (the last two functions are not included in the 42% utilization)
42%
varies
Must be HACCP certified and tasks are required by law
18
Maintnenance person
Monitors the line, makes repairs and adjustments as needed
95%
varies
Do not combine with anything
9
19
Case packer operator
Feeds blank cases into case packer, changes out pallets of blanks
33%
Feeds blanks for 1 minute every 3 minutes
90′
The line produces a maximum of 24 cases per minute
8.2
20
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
21
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
22
Remove to warehouse
Takes finished pallet to freezer
95%
One pallet every 3 minutes
120′ to 275′
Reports to warehouse
8.3
23
Prep employee
Prepares product for line in remote location
80%
225′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9.5
24
Prep employee
Prepares product for line in remote location
80%
120′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9
25
Prep employee
Prepares product for line in remote location
80%
90’
Loads the system at the beginning of shift and adjusts for zero run out at shift end
8.5
26
Reject worker
Reworks or dumps product removed from line
75%
50″
Varies by product. Can be used on other lines if demand is there
8
Line (2)
Job #
Job title
Job description
% Utilization
Frequency
Distance from Tray denester (front of line)
Special Notes
Hours worked per day
1
Lead person
Directs employees, gives breaks, orders supplies and any other tasks as needed
100%
varies
Can be used to fill short term emergency vacancies
9
2
Tray machine operator
Feeds trays into denester
33%
Feeds trays once every 3 minutes. One minute to completely reload the magazines. Can be topped off at any time
1 ‘
Cannot handle food products without changing gloves
8.2
3
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
4
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
5
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
6
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
7
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
8
Component placer
Adds component to tray
82%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
9
Inspect for missing component
Add to or remove trays with missing components
80%
37′
Cannot change lines without changing uniform
8
10
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
11
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
12
Film machine operator
Reloads film spindle, splices onto existing roll, removes doubles from splice, rotates spindle, removes spent roll, discards spent roll.
25%
It takes 2 minutes to perform duties every 8 minutes. The actual splicing and changing of the roll takes 45 seconds and the rest of the time is in set up and support fuctions The total of 2 minutes does not have to occur consecutively. Once the splice is made, the rejects created can be dealt with immediately or before the next splice is made. removal of the old roll and reloading the new roll on the spindle works the same way.
45′
Cannot handle food products without changing gloves
8.2
13
Film machine inspector
Looks for loose seals and removes as needed
80%
varies constantly during shift
49′
8
14
Carton machine operator
Reloads flat cartons into machine
20%
30 seconds to reload every 150 seconds. Machine can be topped off at any time. The magazine does not have to be completely empty.
56′
Cannot handle food products without changing gloves
8.4
15
Final inspector
Removes open, unsealed or damged cartons
60%
varies constantly during shift
61′
8.4
16
Wgt control
Continually monitors weights of product, adjusts machine settings as needed, produces control charts for 6 sigma program
75%
varies
Can be used in an emergency but every minute this job is unfilled it costs you money
8.4
17
Quality Control inspector
Checks component weights every 60 minutes, total weights every 20 minutes and verifies day coding information every two hours. Maintains the official USDA complance records for weight. Required to do re checks if weights are too low and place hold tags when needed. (the last two functions are not included in the 42% utilization)
42%
varies
Must be HACCP certified and tasks are required by law
18
Maintnenance person
Monitors the line, makes repairs and adjustments as needed
95%
varies
Do not combine with anything
9
19
Case packer operator
Feeds blank cases into case packer, changes out pallets of blanks
33%
Feeds blanks for 1 minute every 3 minutes
90′
The line produces a maximum of 24 cases per minute
8.2
20
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
21
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
22
Remove to warehouse
Takes finished pallet to freezer
95%
One pallet every 3 minutes
120′ to 275′
Reports to warehouse
8.3
23
Prep employee
Prepares product for line in remote location
80%
225′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9.5
24
Prep employee
Prepares product for line in remote location
80%
120′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9
25
Prep employee
Prepares product for line in remote location
80%
90’
Loads the system at the beginning of shift and adjusts for zero run out at shift end
8.5
26
Reject worker
Reworks or dumps product removed from line
75%
50″
Varies by product. Can be used on other lines if demand is there
8
Line (3)
Job #
Job title
Job description
% Utilization
Frequency
Distance from Tray denester (front of line)
Special Notes
Hours worked per day
1
Lead person
Directs employees, gives breaks, orders supplies and any other tasks as needed
100%
varies
Can be used to fill short term emergency vacancies
9
2
Tray machine operator
Feeds trays into denester
33%
Feeds trays once every 3 minutes. One minute to completely reload the magazines. Can be topped off at any time
1 ‘
Cannot handle food products without changing gloves
8.2
3
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
4
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
5
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
6
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
7
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
8
Component placer
Adds component to tray
82%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
9
Inspect for missing component
Add to or remove trays with missing components
80%
37′
Cannot change lines without changing uniform
8
10
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
11
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
12
Film machine operator
Reloads film spindle, splices onto existing roll, removes doubles from splice, rotates spindle, removes spent roll, discards spent roll.
25%
It takes 2 minutes to perform duties every 8 minutes. The actual splicing and changing of the roll takes 45 seconds and the rest of the time is in set up and support fuctions The total of 2 minutes does not have to occur consecutively. Once the splice is made, the rejects created can be dealt with immediately or before the next splice is made. removal of the old roll and reloading the new roll on the spindle works the same way.
45′
Cannot handle food products without changing gloves
8.2
13
Film machine inspector
Looks for loose seals and removes as needed
80%
varies constantly during shift
49′
8
14
Carton machine operator
Reloads flat cartons into machine
20%
30 seconds to reload every 150 seconds. Machine can be topped off at any time. The magazine does not have to be completely empty.
56′
Cannot handle food products without changing gloves
8.4
15
Final inspector
Removes open, unsealed or damged cartons
60%
varies constantly during shift
61′
8.4
16
Wgt control
Continually monitors weights of product, adjusts machine settings as needed, produces control charts for 6 sigma program
75%
varies
Can be used in an emergency but every minute this job is unfilled it costs you money
8.4
17
Quality Control inspector
Checks component weights every 60 minutes, total weights every 20 minutes and verifies day coding information every two hours. Maintains the official USDA complance records for weight. Required to do re checks if weights are too low and place hold tags when needed. (the last two functions are not included in the 42% utilization)
42%
varies
Must be HACCP certified and tasks are required by law
18
Maintnenance person
Monitors the line, makes repairs and adjustments as needed
95%
varies
Do not combine with anything
9
19
Case packer operator
Feeds blank cases into case packer, changes out pallets of blanks
33%
Feeds blanks for 1 minute every 3 minutes
90′
The line produces a maximum of 24 cases per minute
8.2
20
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
21
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
22
Remove to warehouse
Takes finished pallet to freezer
95%
One pallet every 3 minutes
120′ to 275′
Reports to warehouse
8.3
23
Prep employee
Prepares product for line in remote location
80%
225′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9.5
24
Prep employee
Prepares product for line in remote location
80%
120′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9
25
Prep employee
Prepares product for line in remote location
80%
90’
Loads the system at the beginning of shift and adjusts for zero run out at shift end
8.5
26
Reject worker
Reworks or dumps product removed from line
75%
50″
Varies by product. Can be used on other lines if demand is there
8
Line (4)
Job #
Job title
Job description
% Utilization
Frequency
Distance from Tray denester (front of line)
Special Notes
Hours worked per day
1
Lead person
Directs employees, gives breaks, orders supplies and any other tasks as needed
100%
varies
Can be used to fill short term emergency vacancies
9
2
Tray machine operator
Feeds trays into denester
33%
Feeds trays once every 3 minutes. One minute to completely reload the magazines. Can be topped off at any time
1 ‘
Cannot handle food products without changing gloves
8.2
3
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
4
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
5
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
6
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
7
Component placer
Adds component to tray
84%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
8
Component placer
Adds component to tray
82%
Places a component every 1.25 seconds
12′
Cannot change lines without changing uniform
8
9
Inspect for missing component
Add to or remove trays with missing components
80%
37′
Cannot change lines without changing uniform
8
10
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
11
Line Service
Provides materials to the line in various places
80%
varies constantly during shift
2′ to 56′
8.5
12
Film machine operator
Reloads film spindle, splices onto existing roll, removes doubles from splice, rotates spindle, removes spent roll, discards spent roll.
25%
It takes 2 minutes to perform duties every 8 minutes. The actual splicing and changing of the roll takes 45 seconds and the rest of the time is in set up and support fuctions The total of 2 minutes does not have to occur consecutively. Once the splice is made, the rejects created can be dealt with immediately or before the next splice is made. removal of the old roll and reloading the new roll on the spindle works the same way.
45′
Cannot handle food products without changing gloves
8.2
13
Film machine inspector
Looks for loose seals and removes as needed
80%
varies constantly during shift
49′
8
14
Carton machine operator
Reloads flat cartons into machine
20%
30 seconds to reload every 150 seconds. Machine can be topped off at any time. The magazine does not have to be completely empty.
56′
Cannot handle food products without changing gloves
8.4
15
Final inspector
Removes open, unsealed or damged cartons
60%
varies constantly during shift
61′
8.4
16
Wgt control
Continually monitors weights of product, adjusts machine settings as needed, produces control charts for 6 sigma program
75%
varies
Can be used in an emergency but every minute this job is unfilled it costs you money
8.4
17
Quality Control inspector
Checks component weights every 60 minutes, total weights every 20 minutes and verifies day coding information every two hours. Maintains the official USDA complance records for weight. Required to do re checks if weights are too low and place hold tags when needed. (the last two functions are not included in the 42% utilization)
42%
varies
Must be HACCP certified and tasks are required by law
18
Maintnenance person
Monitors the line, makes repairs and adjustments as needed
95%
varies
Do not combine with anything
9
19
Case packer operator
Feeds blank cases into case packer, changes out pallets of blanks
33%
Feeds blanks for 1 minute every 3 minutes
90′
The line produces a maximum of 24 cases per minute
8.2
20
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
21
Case stacker
Stacks finished cases onto a CHEP pallet
55%
Stacks one case every 5 seconds. Capable of 20 cases per minute
112′
Can backlog cases for ~ 30 seconds without issue
8.4
22
Remove to warehouse
Takes finished pallet to freezer
95%
One pallet every 3 minutes
120′ to 275′
Reports to warehouse
8.3
23
Prep employee
Prepares product for line in remote location
80%
225′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9.5
24
Prep employee
Prepares product for line in remote location
80%
120′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
9
25
Prep employee
Prepares product for line in remote location
80%
90′
Loads the system at the beginning of shift and adjusts for zero run out at shift end
8.5
26
Reject worker
Reworks or dumps product removed from line
75%
50″
Varies by product. Can be used on other lines if demand is there
8
Answer
Answers and calculations
Describe your combinations/elimination below. If you wish to use excel and show your work use the first three rows and columns b to g as needed. If you wish to use a separate Word or Excel document to attached to dropbox you may do so.
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mba
1. How would you assess the overall financial health of Largo Global Inc. (LGI)? You will need to provide a broad view of the main trends that emerge from your analyses of the information in tabs 2, 3, and 4. Your key findings should be synthesized and highlight a clear diagnostic of LGI’s financial strength and/or weakness. [HINT: all 5 questions are interrelated and may sometimes build on each other it is imperative that you develop a blue-print or an outline of what you are answering for each question. Do not answer each question independently as if they were not connected. You should not be redundant but should make sure that you are judiciously coordinating these 5 questions. Question 1 and 5 should be providing the introduction and conclusion of your analysis. Questions 2, 3, and 4 should be providing the body or development of your analysis with a focus on operations, investing, and financing]
[insert your answer here]
2. How is LGI doing in terms of operating efficiency? How would you assess its performance compared to its main competitor and the industry index? What are the principal areas that need to be addressed to strengthen LGI’ s bottom line? Identify and use key indicators from all 3 analyses that provide insight about LGI’s operations. [HINT: Focus of this question is the Income Statement and the Net Working Capital (NWC) as it relates to Current Assets and Current Liabilities]
[insert your answer here]
3. How is LGI doing in terms of using assets efficiently? How would you assess it compared to its main competitor and the industry index? What are the principal areas that need to be addressed to strengthen the left-hand side of its balance sheet? Identify and use key indicators from all 3 analyses that provide insight about LGI’s assets. [HINT: Focus of this question is the firms assets excluding current asset]
[insert your answer here]
4. How is LGI doing in terms of financial leverage? How would you assess it compared to its main competitor and the industry index? What are the principal areas that need to be addressed to strengthen the right-hand side of its balance sheet? Identify and use key indicators from all 3 analyses that provide insight about LGI’s debt and equity mix. [HINT: Focus of this question is the firms liabilities and equity excluding current liabilities]
[insert your answer here]
5. Based on the financial strengths and weaknesses of LGI, how would you prioritize actions that will ultimately satisfy LGI’ s shareholders? Make specific recommendations that clearly identify the decisions LGI’ s board and executives need to make. What actions do they need to take? Set quantifiable targets and objectives for LGI. Your answers must be supported by all arguments developed in questions 2, 3, and 4. In addition, make sure you use data not already used in previous questions. [HINT: Be strategic as you will revisit this question when you reach the last project of this course.]