Management Operations
Case-Study 1

BAYONNE PACKAGING, INC.

Table of Contents
Executive Summary ……………………………………………………………………………………………………….2
Introduction…………………………………………………………………………………………………………………..2
Company Overview………………………………………………………………………………………………………..3
Industry overview…………………………………………………………………………………………………………..3
Process Analysis……………………………………………………………………………………………………………..4
Main problems and recommendations………………………………………………………………………………10Executive Summary

In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good …show more content…
Current Capacity Utilization of the Work Centres

To compute the capacity of the work centres we assumed the 347 work hours scheduled for October 2011 as the total working time. We calculated the ratio between the total number of hours that each machine/work centre worked by the total working time to get the capacity utilization.

COMPOSITION
0,734870317
JAGENBURG SHEETER
0,804034582
HEIDELBERG SHEETER
1,002881844
BOBST DIE-CUT
0,783861671
ROYAL/QUEEN F&G
0,449567723
STAUDE F&G
0,515850144
3A WINDOW/PATCH
0,417867435

We can conclude that the Composition, Sheet, Print and Die-Cut departments have an adequate capacity (the fact that the Heidelberg Sheeter is running at more than 100% capacity can be explained by the fact that we are using schedule working hours and standard hours, which can differ from reality).
On the other hand the Fold&Glue department, that contains the machines Royal/Queen, Staude and 3A is not working near full capacity. Actually it is just working around half of its capacity, which can anticipate some of the problems on this department.

Ganging Orders

By reading the case we became aware of the practise of ganging, in which orders with similar set up characteristics are run together after a single setup.
In this question we calculated the capacity in pieces per day for the Die-Cut Work Centre regarding three different situations of ganging: none of the orders