Case Study 6.1: Johnston Products Production and Efficiency Analysis

This case study analyzes the production processes of Johnston Products, focusing on issues related to standard time, master schedule adherence, and machine efficiency. The study highlights discrepancies between estimated and actual standard times, attributing these to material scarcity and equipment maintenance. It examines the impact of a high batch size on machinery and the importance of meeting the master schedule. The analysis discusses workforce turnover, training programs, and the need for machine improvements. The study proposes solutions such as optimizing batch sizes and implementing policies to meet the standard time, ultimately aiming to improve overall production efficiency and reduce costs. The case study also considers the customer service system and its priority in relation to the master schedule. It concludes that meeting the master schedule and addressing machine-related issues are the primary concerns for improving the company's productivity.

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CASE STUDY 6.1 JOHNSTON PRODUCTS

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Table of Contents
1.......................................................................................................................................................2
2.......................................................................................................................................................4
3.......................................................................................................................................................5
Bibliography...................................................................................................................................7

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1
Run time and setup time together combine the total time required in the process of ordering. One
unit of each operation requires standard time which may be termed as the run time.
Justin Wang has acquired a total standard time of 320 hours. Such estimation of the standard
time is for the first week in the place where assembling processes. However, in practicality the
standard time has come as 291 hours. Such irregularity has happened due to sudden scarcity of
materials and for maintaining purpose of the plant’s equipment. The table below exhibits the
details which include 8 machines and 8 workers per work station for a day’s shift
Standard time in the
workplace ( minute/ unit)
Size of the BatchCommodity
1750A174
9100G820
19.550H221
11.7200B327
21.2100C803
14.1300P932
15.8200F732
17.3150J513
12.8150L683
It can be clearly seen that the standard time required for the process as calculated by Justin wang
is inappropriate. Therefore, the run time =Run time required per unit * number of units in one
particular order. The table below shows the actual standard time with respect to the above
discussed details which are essential for the process of manufacturing of one particular unit.

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Size of the each batch
* standard time in the
workplace
Standard time in the
workplace ( minute/
unit)
Size of the BatchCommodity
8501750A174
9009100G820
97519.550H221
234011.7200B327
212021.2100C803
423014.1300P932
316015.8200F732
259517.3150J513
192012.8150L683
Therefore, from the last column which computes the product of the size of the batch and the
standard time in the place of work, a total of 19090 minutes is achieved. Hence, the actual
standard time acquired during the entire process is 318 hours and 17 minutes. Thus it can said
that the standard time acquired in practicality by Justin wand is 318 hours, which proves 320
hours as calculated by Justin Wang is inappropriate.

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The level of job standards had not been examined for the last 4 years. However, Justin Wang
emphasised that such examination is not that critical from the company’s point of view. His
experience had made him realise that if the standard time is on the higher level, a worker
acquires sufficient time to complete his respective job with respect to the standard of practical
effort. However if the trend of last month is noticed, the actual standard time came out as 291
hours. Comparing this standard work time with the work time estimated by Justin Wang, it
clearly show that the entire system has a deficit of 29 hours. Moreover the real standard
calculated above of 318 hours also reflects this deficit. These 29 hours will be burdened for the
next weak thus making a total of 318 + 29 hours = 357 hours in reality. Such deficiency
continues for the succeeding week, and it is thus culminates to more than 100 hours of work as
total deficient. However the learning curve, as perceived by Justin Wang shows that such
phenomenon does not always reflect the fact that the standard time is lagging behind the
schedule. It should also be considered that in practical situation where real work time is taken in
account a lag of 100 hours for a month does indicate a problem. No matter what the learning
curve suggests, Justin Wang should implement policies to meet the ideal standard time of 318
hours. Such decision is necessary for depleting the time lag of 20-30 hour per week.
The General Manager wanted to incorporate the entire area of the facility for the production
affairs. Such conviction is achieved after the GM felt that such incorporation would lessen the
cost of the process. Such process of cost control thereby reflects total utility of the area for
assembling as major mean of measuring performance. However the major hindrance in this
instance is the customer service system. This is a result of Justin Wang being preoccupied with
the processes of the master schedule. Therefore, timely product delivery is not guaranteed.
However, such hindrance should be undermined as the major hindrance of not meeting the
standard time of the master schedule should be the prime focus of Justin Wang. This is due to the
fact that after the standard time of the master schedule is met, Justin Wang will refocus on the
customer service systems, which seem secondary in priority for Justin Wang.
It is evident that workforce turnover is not a major issue of concern for Justin Wang. This is due
to easy availability of workers when such turnover happens. However, this can be attributed to
the fact that the payment received per hour by the workers is not that satisfactory. The place

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where the entire process is situated has easy access to a large number of potential workforces.
Therefore, such turnover is matter of minimal concern as most of the workforce includes less
skilled workers which are required for the physically demanding affairs of the process. The
company follows a very effective policy by administering the new workers in the production area
for training for week. After receiving such training the workers are posted in the area for
assembling purpose whereby temporary workers are appointed to fill up vacancy. Hence this
policy is not considered as a major problem; hence it should be focused after meeting all the
considerable requirements.
Another important aspect that Justin Wang should consider as problem is the depreciative
qualities of the machineries. Such machineries involve all the capital assets which are essential
for the general progress of the company’s productive affairs. It should be noted that though few
structural changes have been made in the technicality, the normal course of process has been not
been improved to that extent. All machines incur depreciation, and such degrading attribute is
countered by proper engineered innovation for better productivity of the machineries. With the
forced batch size of 300 units instead of 50 units, the burden on machinery increases. This results
in its frequent break down where maintenance process hinders the normal way of process. Thus
in totality, machine improvement and proper implementation for meeting the master schedule of
318 hours as calculated are the main areas of concern. Such areas of concern are the major
hindrances in the facility.

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From the above discussed aspects it is clear that machineries and meeting the master schedule
are the main concern when it comes to the productivity of the entire process as a whole. If the
master schedule is met then the need of forcing a batch size of 300 units instead of 50 units is
countered. The table below shows the computation of the standard time while considering 50
units in average.
Size of the each batch
* standard time in the
workplace
Standard time in the
workplace ( minute/
unit)
Size of the BatchCommodity
8501750A174
450950G820
97519.550H221
58511.750B327
106021.250C803
70514.150P932
79015.850F732
86517.350J513
64012.850L683
The summation of the 4th column is 6920 minutes. Hence 115 hours 20 minutes is the standard
time if the batch size is kept at 50. This acquired time however is practically way less than what
Justin Wang computed. However it is not deemed as impossible. 50- 200 units per batch are
efficient for achieving a less standard time and thus it will adhere to the original planned master
schedule. This policy ensures the ability of the workers to meet the standard time and less
workload on the machineries. Overall cost incurred in the maintenance process and the time lag
is minimised.

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Bibliography
Arnold, J. R. T., Stephen Chapman, Lloyd Clive. Introduction to Materials Management, 7th
Edition. Pearson Learning Solutions, 10/2016. VitalBook file.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A
balanced approach. Cengage Learning.