Line Balancing

Cycle time(Ct)=Production Time per day Required O/P Per Day Theoretical No. of W/S(Nt)= Sum of All Task Time Cycle Time Line Efficiency = Sum of all Task Time No of W/S x Cycle Time Balance of Delay = 1 Actual line efficiency Effective Line Efficiency = Sum of All Task Time No. of W/S x Effective cycle time(=max stn time) Prod. Time Per day = No. of hours in shift (8 hr) x 60 and if task time Task is in sec then 8 x 60 x 60 Idle Workstation Task Stn. Time Time Time

Capacity Utilization = Actual Output / Designed Capacity System Efficiency = Actual Output / System Efficiency

Simple Exponential Smoothening:

Ft = Ft-1 + Alpha [ Dt-1 - Ft-1]

Mean Square Error:

Forecast Error = Demand 4MA (= D- F )

Abs. Error = 1 Forecast Error 1 Mean Absolute Deviation = 1/n Abs Deviation(=abs error) Abs % Error = (Abs Error / Demand ) x 100 Mean Abs % Error = 1/n Abs % Error Period Demand 4MA Forecast Abs Error MAD Bias = Cumulative Forecast Error; TS = Bias / MAD Error
APE MAPE BIAS TS Abs Err Sq MSE

Trend Adjusted Exponential Smoothening: Smoothened Level (St) = @ Y1 + ( 1 - @) [St-1 + Bt-1] Smoothened Value of Slope of time t Trend ( Bt) = Bita [ St St-1] + ( 1 Bita) Bt-1 Forecast Ft+m = St + mBt Note : @ = Alpha and I = one. not i
Period Demand (Yt) Smoothened Value (St) Trend (Bt) Forecast (Ft)

No. of M/C Req. for single shift = Processing time per unit x Production Rate Available time x Efficiency of Equipment ( If given) For single shift of 8 hrs , Available time = 8 x 60 For Two shift of 8 hrs , Available time = 8 x 2 x 60

No. of M/C Required = Prod. Time + Setup Time Available Time x Effici of Equip = [(Annual Demand Forecast x Std Proc. Time)] + [(Annual Demand Forecast / Avg. Lot Size) x Std. Setup Time]__ No. of Days x Hours of Shift x Efficiency( If given. = 85 % in case of 15 % cushion) Use Same formula for X and Y and then Calculate X + Y

Forecasting by Linear Regression:

b = xy n x(bar) y(bar) a = ybar b xbar x2 of n ( xbar)2 Year Sales ( Y) y = a XY + bxXsquare X ( No yr.1,2,3

EOQ / Q* = 2 CoD/ Ch No of Orders = D/Q* Cycle Time / T* = Q*/ D Total Cost = Purchasing Cost + Total Variable Cost = D x Cost per Unit + Co + D/Q* + Avg. Inv x Ch Where, Avg. Inv = (Beginning Inv + EOQ ) / 2

For Shortage: Q* = (2 CoD/ Ch) x [(Cs +

Ch)/Cs] Inventory Level I* = (2 CoD/ Ch) x [Cs /(Cs + Ch)] Shortage Level = Q* I* Production Days / run = Q*/P(Prod.Rate) x No.of Working Days Product Demand Rate Prod Rate Annual Holding
Cost Annual Ordering Cost EOQ Prod Days / Run