Meritor, a company that makes muffler assemblies for the automotive industry, is
ID: 455606 • Letter: M
Question
Meritor, a company that makes muffler assemblies for the automotive industry, is committed to the use of kanban to pull material through its manufacturing cells. Meritor has designed each cell to fabricate a specific family of muffler products. Fabricating a muffler assembly involves cutting and bending pieces of pipe that are welded to a muffler and a catalytic converter. The mufflers and catalytic converters are pulled into the cell based on current demand. The catalytic converters are made in a specialized cell. Catalytic converters are made in batches of 10 units and are moved in special hand carts to the fabrication cells. The catalytic converter cell is designed so that different types of catalytic converters can be made with virtually no setup loss. Meritor hires a team of consultants. The consultants suggest a partial robotic automation as well as the safety stock to be 0.125. Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the making of catalytic converters. The muffler assembly fabrication cell averages 16 assemblies per hour and the lead time is two hours’ response time for a batch of 10 catalytic converters. The kanban cards needed is 4. Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of muffler assemblies and also a reduction in container size to eight per container. Meritor implements these suggestions and the result is that the muffler assembly fabrication cell now averages approximately 32 assemblies per hour, and the catalytic converter assembly cell can now respond to an order for a batch of catalytic converters in one hour. The safety stock remains at 0.125. How many kanban cards are needed? (Round up your answer to the nearest whole number.) Select one: a. 5 b. 3 c. 6 d. None of the above
Explanation / Answer
Production = 32 units per hour
LEad time = 1 hours
Kanban Size = 10
Safety stock = 0.125
Number of Kanbans Needed = (Demand * (Replenishment Time + Safety Margin))/Standard Container Quantity
32*(1+0.125)/10 = 3.6 kanbans