Use the value stream map to conduct a complete analysis of the carpincho wallet production process. Calculate all raw material and WIP lead times and determine overall process capacity assuming El Gran Raton uses a batch size of 300 units
If a single carpincho wallet were ordered today, how long before it would reach the back pocket of the delighted customer if his order is but one of an average of 2230 orders (all for a single wallet) during an average 5 day work week. *Assume that the days indicated on the lead time ladder are based on a different batch size and not applicable to the 300 unit batch currently in use.*
Using a batch size of 300 units, the capacity of Process A is calculated as:
60 minute setup * 60 seconds/minute = 3600 second setup
3600 seconds/300 units per batch = 12 seconds per unit
Per unit processing time = 300 seconds + 12 seconds = 312 seconds
The capacity of Process A is 27000 seconds per day/312 seconds per unit = 86.5 units per day
Process B is 47 seconds per unit with a capacity of 574.4 units per day and Process C is 348 seconds per unit with a capacity of 77.58 units per day
Process C is always the bottleneck regardless of batch size.
WIP times are calculated as 2230 units/week divided by 5 days per week equals 446 units/day
Pre Process A: 1783 units/446 units per day = 4 days
Between A and B: 1202 units/446 units per day = 2.69 days
Between B and C: 733 units/446 units per day = 1.64 days
C to Shipping: 593 units/446 units per day = 1.32 days
Adding up these production times and delays yields:
5.94 days + 300 seconds + 4 days + 45 seconds + 2.44 days + 300 seconds + 1.97 days = 14.37 days and 645 seconds, or 14.394 days, based on a 27,000 second day.
A carpincho is more commonly known as a capybara in the U.S.
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