§Illustrative Current
Operations Example*
§Resource Costs
–30
shifts labor shifts per week to complete insert production
(10 resources per shift)
–8 hrs
per shift with 75% uptime
(effectively 6 hours per shift)
–Total Production Shift Time =
30*8 = 240 hours
§Production
Requirements
–750,000 insert package
demand/wk
–6,000 packages per hr. line
speed
–750K/6K * (1/.75 uptime) = 167
hrs. required
§Opportunity
(Not all can be captured)
–240 hours - 167 hours = 73 hours
~ 9 shifts
–9 shifts * 10 resources * $25/hr
*8 hrs = $18K
–Assuming 10% capture, then $1800 per week
§Illustrative Technology
Augmentation Example*
§Impact of new technology
–Assuming new technology improvements: line speed
10,000 packages per hour; uptime of 90%
–750K
packages/10K packages per hour *
(1/.9 uptime) = 83 hrs. required
§Opportunity
(Not all can be captured)
–240 hours - 83 hours = 157 hours
~ 19 shifts
–19 shifts * 10 resources *
$25/hr *8 hrs = $38K
–Assuming 10% capture, then $3800 per week
§Business
Case Objective
–Develop
algorithms to reduce change-over time leading to unnecessary labor
shifts (~$2K opportunity per shift)