Learn how to manage
Littlefield Assignment Details, Game 1
Game number: 1 Objective is to learn how to manage: Capacity Changes you can make in the game:
1. Buy and sell machines? Yes 2. Change priority at station 2? Yes 3. Change lot size? No 4. Change pricing contract? No 5. Limit WIP? No 6. Change re-order point and quantity? No 7. Take out loan? (If yes, day available) No
Starting Conditions 1. Number of machines
At station 1 1 At station 2 1 At station 3 1 Machine cost at station 1 ($ 000) 100 Machine cost at station 2 ($ 000) 100 Machine cost at station 3 ($ 000) 100
2. Priority at station 2 FIFO 3. Kits/job (starting lot size = 1 lot / job) 60
Setup time at station 1, hours/lot 0 Setup time at station 2, hours/lot 0 Setup time at station 3, hours/lot 0
4. Number of pricing contracts 1 Contract 1: max. revenue per order, $ 400 Contract 1: quoted/max lead time, days 0.2/0.4 Contract 2: max. revenue per order, $ – Contract 2: quoted/max lead time, days – Contract 3: max. revenue per order, $ – Contract 3: quoted/max lead time, days –
5. WIP limit 50 6. Re-order point, kits 0
Re-order quantity, kits 120 Lead time for raw materials order, days 0 Cost of raw materials per kit, $ 0 Fixed order cost, $ 0 Holding Cost, % /yr.(excluding interest) 0
7. Interest rate gained on cash, % / yr 0 Debt initial cost (% of debt incurred) – Debt interest rate, % / yr –
Demand (if trend, see note below) Is there a trend in the Demand? Yes (See note on next page) (1)
Notes regarding demand: (1) Demand will increase roughly linearly from day 1 until the end of the game (day 270).
Good luck in the game! Here is a quick summary of the first game. Game 1: Learning objective: help you learn how to manage capacity as a function of demand.
Demand: demand will increase roughly linearly from day 0 to day 270. Possible moves: you will be able to buy machines at all stations, and change priority at station 2. Lead time: you must complete the job in 0.2 days or less to get full revenue of $400 per job. If you don’t get your jobs done within 0.4 days, you don’t get any money.
Run1
| jobs | jobs | Raw mtl | Utilization | Queue (kits) | jobs | Lead | Rev/ | Analysis based on the first 50 days | Raw mtl. Inventory | ||||||||||||||
| Day | rejected | accepted | inv, kits | Sta 1 | Sta 2 | Sta 3 | RM | Sta 1 | Sta 2 | Sta 3 | done | Time | job | ||||||||||
| 1 | – 0 | 1 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | – 0 | 0 | – 0 | $1,000 | col. D: I= | ||||||||||
| 2 | – 0 | 1 | 0.05 | 0.03 | 0.07 | – 0 | – 0 | – 0 | – 0 | 2 | 0.074 | $1,000 | |||||||||||
| 3 | – 0 | 2 | 0.05 | 0.03 | 0.07 | – 0 | – 0 | – 0 | – 0 | 2 | 0.074 | $1,000 | |||||||||||
| 4 | – 0 | 2 | 0.05 | 0.03 | 0.07 | – 0 | – 0 | – 0 | – 0 | 2 | 0.074 | $1,000 | m= | 1 | m= | 1 | m= | 1 | |||||
| 5 | – 0 | 3 | 0.06 | 0.03 | 0.07 | – 0 | – 0 | – 0 | – 0 | 2 | 0.074 | $1,000 | |||||||||||
| 6 | – 0 | 2 | 0.07 | 0.04 | 0.10 | – 0 | – 0 | – 0 | – 0 | 3 | 0.074 | $1,000 | Job Arrives | WIP<limit, | Job matched | Job is | |||||||
| 7 | – 0 | 4 | 0.10 | 0.06 | 0.14 | – 0 | – 0 | – 0 | – 0 | 4 | 0.074 | $1,000 | Check WIP | Job is | with RM and | finished | |||||||
| 8 | – 0 | 4 | 0.08 | 0.04 | 0.10 | – 0 | – 0 | – 0 | – 0 | 3 | 0.074 | $1,000 | accepted | split into “b” lots | |||||||||
| 9 | – 0 | 4 | 0.12 | 0.06 | 0.14 | – 0 | – 0 | – 0 | – 0 | 4 | 0.074 | $1,000 | Job waits | Job (lot) waits | Job (lot) waits | Job (lot) waits | Lot waits until all | ||||||
| 10 | – 0 | 4 | 0.11 | 0.07 | 0.17 | – 0 | – 0 | – 0 | – 0 | 5 | 0.074 | $1,000 | WIP=limit, | for RM | for empty | Lot processed | for empty | Lot processed | for empty | Lot processed | lots of job are done | ||
| 11 | – 0 | 5 | 0.13 | 0.07 | 0.17 | – 0 | – 0 | – 0 | – 0 | 4 | 0.074 | $1,000 | Job is rejected | machine-1 | at station 1 | machine-2 | at station 2 | machine-3 | at station 3 | (no wait if 1 lot/job) | |||
| 12 | – 0 | 5 | 0.13 | 0.08 | 0.17 | – 0 | – 0 | – 0 | – 0 | 6 | 0.074 | $1,000 | Rates | column B: | col. C: R= | col. L: R= | |||||||
| 13 | – 0 | 6 | 0.14 | 0.07 | 0.17 | – 0 | – 0 | – 0 | – 0 | 5 | 0.074 | $1,000 | jobs/day | ||||||||||
| 14 | – 0 | 6 | 0.14 | 0.09 | 0.21 | – 0 | – 0 | – 0 | – 0 | 6 | 0.074 | $1,000 | |||||||||||
| 15 | – 0 | 6 | 0.17 | 0.09 | 0.23 | – 0 | – 0 | – 0 | – 0 | 6 | 0.074 | $1,000 | utilizations, u | col. E: u1= | col. F: u2= | col. G: u3= | |||||||
| 16 | – 0 | 6 | 0.15 | 0.10 | 0.22 | – 0 | – 0 | – 0 | – 0 | 7 | 0.074 | $1,000 | |||||||||||
| 17 | – 0 | 8 | 0.18 | 0.10 | 0.24 | – 0 | – 0 | – 0 | – 0 | 7 | 0.074 | $1,000 | |||||||||||
| 18 | – 0 | 7 | 0.20 | 0.10 | 0.27 | – 0 | – 0 | – 0 | – 0 | 7 | 0.074 | $1,000 | Number in system (WIP): | H: Iq-RM= | I: Iq-1= | I1=mu1 | J: Iq-2= | I2=mu2 | K: Iq-3= | I3=mu3 | WIP=sum | ||
| 19 | – 0 | 8 | 0.20 | 0.12 | 0.25 | – 0 | – 0 | – 0 | – 0 | 8 | 0.074 | $1,000 | |||||||||||
| 20 | – 0 | 8 | 0.20 | 0.12 | 0.29 | – 0 | – 0 | – 0 | – 0 | 8 | 0.074 | $1,000 | Contract lead time limits | ||||||||||
| 21 | – 0 | 8 | 0.20 | 0.13 | 0.30 | – 0 | – 0 | – 0 | – 0 | 9 | 0.074 | $1,000 | Time in system (days): | Tq-RM= | Tq=Iq/R | p=um/R | Tq=Iq/R | p=um/R | Tq=Iq/R | p=um/R | Col. M: T= | T=sum | Contract 1 |
| 22 | – 0 | 9 | 0.23 | 0.13 | 0.31 | – 0 | – 0 | – 0 | – 0 | 9 | 0.074 | $1,000 | 0.4 | ||||||||||
| 23 | – 0 | 9 | 0.23 | 0.13 | 0.31 | – 0 | – 0 | – 0 | – 0 | 9 | 0.074 | $1,000 | Col. N, avg revenue: | $ 1,000 | |||||||||
| 24 | – 0 | 10 | 0.25 | 0.13 | 0.34 | – 0 | – 0 | – 0 | – 0 | 9 | 0.074 | $1,000 | Capacity of system (jobs/day) | m c= m / p | m c= m / p | m c= m / p | minimum | ||||||
| 25 | – 0 | 10 | 0.25 | 0.15 | 0.34 | – 0 | – 0 | – 0 | – 0 | 10 | 0.074 | $1,000 | |||||||||||
| 26 | – 0 | 10 | 0.25 | 0.16 | 0.36 | – 0 | – 0 | – 0 | – 0 | 11 | 0.074 | $1,000 | |||||||||||
| 27 | – 0 | 11 | 0.28 | 0.15 | 0.37 | – 0 | – 0 | – 0 | – 0 | 10 | 0.074 | $1,000 | |||||||||||
| 28 | – 0 | 11 | 0.28 | 0.16 | 0.39 | – 0 | – 0 | – 0 | – 0 | 11 | 0.074 | $1,000 | |||||||||||
| 29 | – 0 | 12 | 0.28 | 0.18 | 0.38 | – 0 | – 0 | – 0 | – 0 | 12 | 0.074 | $1,000 | |||||||||||
| 30 | – 0 | 11 | 0.29 | 0.18 | 0.42 | – 0 | – 0 | – 0 | – 0 | 12 | 0.074 | $1,000 | |||||||||||
| 31 | – 0 | 13 | 0.31 | 0.18 | 0.42 | – 0 | – 0 | – 0 | – 0 | 12 | 0.074 | $1,000 | |||||||||||
| 32 | – 0 | 12 | 0.32 | 0.18 | 0.44 | – 0 | – 0 | – 0 | – 0 | 12 | 0.074 | $1,000 | |||||||||||
| 33 | – 0 | 13 | 0.33 | 0.19 | 0.44 | – 0 | – 0 | – 0 | – 0 | 13 | 0.074 | $1,000 | |||||||||||
| 34 | – 0 | 13 | 0.33 | 0.19 | 0.47 | – 0 | – 0 | – 0 | – 0 | 13 | 0.074 | $1,000 | |||||||||||
| 35 | – 0 | 14 | 0.35 | 0.20 | 0.46 | – 0 | – 0 | – 0 | – 0 | 14 | 0.074 | $1,000 | |||||||||||
| 36 | – 0 | 14 | 0.35 | 0.20 | 0.49 | – 0 | – 0 | – 0 | – 0 | 14 | 0.074 | $1,000 | |||||||||||
| 37 | – 0 | 14 | 0.35 | 0.21 | 0.51 | – 0 | – 0 | – 0 | – 0 | 14 | 0.074 | $1,000 | |||||||||||
| 38 | – 0 | 15 | 0.38 | 0.22 | 0.51 | – 0 | – 0 | – 0 | – 0 | 15 | 0.074 | $1,000 | |||||||||||
| 39 | – 0 | 15 | 0.38 | 0.22 | 0.53 | – 0 | – 0 | – 0 | – 0 | 15 | 0.074 | $1,000 | |||||||||||
| 40 | – 0 | 16 | 0.39 | 0.23 | 0.53 | – 0 | – 0 | – 0 | – 0 | 16 | 0.074 | $1,000 | |||||||||||
| 41 | – 0 | 16 | 0.39 | 0.23 | 0.56 | – 0 | – 0 | – 0 | – 0 | 15 | 0.074 | $1,000 | |||||||||||
| 42 | – 0 | 16 | 0.41 | 0.24 | 0.56 | – 0 | – 0 | – 0 | – 0 | 17 | 0.074 | $1,000 | |||||||||||
| 43 | – 0 | 16 | 0.40 | 0.23 | 0.59 | – 0 | – 0 | – 0 | – 0 | 16 | 0.074 | $1,000 | |||||||||||
| 44 | – 0 | 17 | 0.43 | 0.25 | 0.59 | – 0 | – 0 | – 0 | – 0 | 17 | 0.074 | $1,000 | |||||||||||
| 45 | – 0 | 18 | 0.44 | 0.26 | 0.60 | – 0 | – 0 | – 0 | – 0 | 17 | 0.074 | $1,000 | |||||||||||
| 46 | – 0 | 17 | 0.44 | 0.25 | 0.62 | – 0 | – 0 | – 0 | – 0 | 18 | 0.074 | $1,000 | |||||||||||
| 47 | – 0 | 18 | 0.45 | 0.26 | 0.63 | – 0 | – 0 | – 0 | – 0 | 18 | 0.074 | $1,000 | |||||||||||
| 48 | – 0 | 19 | 0.47 | 0.28 | 0.63 | – 0 | – 0 | – 0 | – 0 | 19 | 0.074 | $1,000 | |||||||||||
| 49 | – 0 | 19 | 0.46 | 0.27 | 0.66 | – 0 | – 0 | – 0 | – 0 | 18 | 0.074 | $1,000 | |||||||||||
| 50 | – 0 | 19 | 0.48 | 0.28 | 0.66 | – 0 | – 0 | – 0 | – 0 | 19 | 0.074 | $1,000 |