PREPARED BY LYLE GIESBRECHT, MOHAMMED GHANE, OSARETIN UHMAHGO &TOM KUNKEL
GROUP CASE STUDY
The case study highlights a number of issues to be addressed:
• A bottleneck in the processing process that causes the vehicles attempting to deliver the raw product to back up. This causes unnecessary waiting by expensive vehicles and their drivers;
This problem could be lessened with a $40,000 investment in a fourth dryer and better logistics. A fifth dryer would not significantly impact the peak load problem, whereas better logistics probably could.
• “Out of control” overtimes costs;
If the process bottleneck is removed, required overtime will be reduced somewhat, although the real cause of the overtime is absenteeism. This can be somewhat managed by meetings with the persistent offenders. However, greater automation and mechanization would be the only effective and lasting solution.
• A problem with quality and the grading process, causing further unnecessary costs.
The study identified a $20,000 investment in a scanner plus an estimated $13,000 in annual salary for its operator would prevent a reported loss of $168,750 in mis-paid premiums.
The case analysis further investigates the primary issue of delivery bottlenecks and explains the reasoning behind the recommendations above.
A flow diagram best explains the processing and identifies the bottleneck:
To recap on the flow:
1. Trucks arrive and are weighed, carrying an average of 75 barrels.
2. Produce is graded, with a $0.75 premium per barrel for top grade fruit.
3. The product is unloaded into dumpers at a maximum throughput of 4,500 barrels per hour
4. Product is stored in bins waiting for processing. Maximum storage is either 6,000 dry and 1,200 wet or 4,000 dry and 3,200 wet. Units are in barrels.
5. If the product is dry, the subsequent process is