Natural Blends Inc

Natural Blends Inc.

(Part A)

Questions Part A
Assume that the production system was running only one size of oranges. Consider just steps two through four :
Extraction
Filtration
Concentration
Extraction Process : -Time Setup = 20min -Capacity = 20,000lbs/hr
Filtration Process : - Operation time = 90min -Filter Change = 30min -Capacity = 20,000lbs/hr
Concentration Process : -Capacity = 18,000lbs/hr

Question 1a :
How much orange juice concentrate can be produced in one 8-hour workday?
Since we have bottleneck on process 3 (Filtration with lowest production capacity in total 8hrs) then all process
should be following process number 3 with downtime 30min for filter change. So we only can get maximum output
from Concentration process is 108,000 lbs = (4 x (18,000+9,000)) = 108,000 lbs

Question 1b :
Assume extraction had previously been setup for the size oranges being processed. How much idle time will there be
in the extraction operation during one 8-hour workday?
Process 2 (extraction) should wait and follow the operation time of Process 3 since it should be shutting down for
30min for filter change after operate 90min. Then during 8hr, process 2 have 4 idle times (=8hrs/2hrs) Idle time = 4
x 30min = 120min / 2hrs

Question 2a :
If you could add storage capacity somewhere between steps two and four in this production line in order to increase
daily output, where would you place it? How much storage would you add?
We will put 1 storage between process 3 (filtration) and process 4 (concentration) with capacity 3000lbs to
accommodate the output from process 3 since the production time and speed is not the same between process 3 and
4.

Question 2b :
Why?
Process 3 after operate for 90min, it can produce 30,000 lbs of orange juice (20,000 lbs/hr) but the process 4 only
have production capacity 18,000 lbs/hr and for 90min operation it only can proceed 27,000 lbs meanwhile the total
output from process 3 are 30,000 lbs....

Natural Blends Inc

NATURAL BLENDS Inc
Here we have 3 processes to consider, the Extraction, Filtration and Concentration.
Extraction has a maximum capacity of 20,000 lbs/hr
Filtration has a maximum capacity of 20,000 lbs/hr
Concentration has a maximum capacity of 18,000 lbs/hr
For Extraction we have a setup time of 20 minutes.
For Filtration we have a setup time of 30 minutes after 90 minutes of filtration.
For Concentration there is no setup time loss.
The processes are simultaneous in nature, and there is no buffer in between. So, if there is a shutdown of a single
process, the entire system shuts down.
Now, if we do consider a 2 hour time slot, then there will be effectively production for 1 and hours due to filtration
setup time:
For Extraction: The maximum production is 30,000 lbs.
For Filtration: The maximum production is 30,000 lbs.
For Concentration: The maximum production is 27,000 lbs.
So the bottle neck operation is the Concentration process and the production rate will be 13,500 lbs/hour. A cycle is
completed in 2hrs.
PART A
Assumption: We are considering that since oranges are of same type the bin will be changed after 3 and hrs of
production. The bin will be changed when the Filtration process will be stopped to change filter. Hence, saving
valuable time.
1a. Amount of orange production possible in 1 day (8 Hrs) =13500*8=108000 lbs
There is a loss of utilization time of 30 mins (due to filtration process) per 2 hours of the whole system.
1b.The idle time for the extraction process in a day would be = (1/2)*4= 2 hours
We see that there is a bottle neck condition in the Concentration process, so we will install a storage capacity in
between Filtration and Concentration.
2a. We will add storage tank between step 3 and step 4. The capacity of tank will be 3000 lbs.
2b. If we add storage tank between step 2 and step 3, then
The maximum production of Extraction process is 20,000lbs/hr.
The maximum production of Filtration is...