“Operational Optimization: Enhancing Efficiency and Reducing Costs

through Project Management Techniques for Autologic Technologies”

Executive MBA Students of PES University – Aug 2021 batch

Akash S G
Kiran Priya Das
Susmita Sengupta
Pradeep BG
Vinay D
Industry Profile
Autologic Controls is a leading manufacturer in the automotive industry, renowned for providing cutting-
edge solutions that enhance manufacturing efficiency and performance. Specializing in robotic welding and
handling solutions, special purpose machines, and precision-engineered jigs and fixtures for VMC, HMC,
and SPMs, the company delivers world-class products tailored to meet specific industrial needs. Their
comprehensive services also include checking and welding fixtures, robotic fixtures, retrofitting, and fixture
modifications and refurbishing. Committed to setting new benchmarks in the automation industry,
Autologic Controls aims to improve industrial performance with innovative robotic process automation.
Their mission is to offer exceptional value and support, maximizing the market potential of the Indian
subcontinent through superior product distribution and customer-centric solutions.
Autologic Technologies, a prominent player in the automotive industry, has consistently demonstrated
significant growth and innovation since its inception. The company operates a state-of-the-art facility
spanning 4000 square feet, equipped with advanced assembly setups to cater to diverse manufacturing
needs. Located at Survey No.72/1, 12th Cross, Doddanna Industrial Area, Bangalore - 560091, Autologic
Technologies is strategically positioned in one of India’s key industrial hubs.
Over the years, Autologic Technologies has achieved remarkable milestones. Starting with an annual
revenue of INR 2.0 million in 2017, the company experienced a rapid increase in earnings, reaching INR 5.0
million in 2019 and INR 10.0 million in 2018. This growth trajectory continued, culminating in an impressive
revenue of INR 30.0 million in 2020 and an outstanding INR 50.0 million in 2021. This consistent growth
underscores the company's dedication to excellence and its capacity to meet the evolving demands of the
industry.
Autologic Technologies boasts a skilled and dynamic team, committed to driving the company's mission of
improving industrial performance through cutting-edge robotic process automation. The company's
solutions are designed to set new benchmarks in the automation industry, offering world-class products at
competitive prices. By maximizing synergy between reputed brands and the market potential of the Indian
subcontinent, Autologic Technologies ensures superior product distribution support and exceptional
overall value across all industries it serves.
In the Autologic Technologies, we encounter four distinct branches representing different departments:
Marketing: - This department focuses on promoting the organization’s products or services. They
strategize, create campaigns, and engage with customers.
Project Team: -The project team manages specific initiatives, ensuring they are executed successfully. They
coordinate resources, timelines, and deliverables.
Sourcing & Execution: - Responsible for sourcing raw materials, managing suppliers, and executing
production plans. This department ensures smooth operations.
Engineering: - The engineering department handles design, development, and maintenance of products or
processes. They collaborate closely with other teams.
 The image depicts an organizational structure related to facility management. On the left side, the label “FACILITY
MANAGEMENT,” surrounded by icons representing various tools and activities (wrench, flame, gear, water droplet, leaf, and
recycling symbol). The right-side features interlocking puzzle pieces labeled “Factory setup,” “Design team,” “Machines,” and
“CMM.” Adjacent to these is another piece labeled “Manufacturing” with “QCD 100%” beneath it. This visual metaphor highlights
the interconnectedness of different components—factory setup, design, machines, CMM, and quality control—in achieving
effective facility management. The puzzle pieces emphasize how each part contributes to the overall organizational structure

Company Profile
Autologic Technologies boasts an in-house manufacturing facility equipped with state-of-the-art
machinery essential for precision engineering and fabrication. Key machines include the Jig
Boring Machine, used for precise drilling, reaming, and boring operations to ensure accurate hole
placement and dimensions. The facility also features Milling Machines, versatile tools capable of
performing various tasks such as cutting, shaping, and drilling, crucial for creating complex
shapes and profiles. Additionally, Surface Grinding Machines are employed to achieve smooth
and flat surfaces on workpieces by removing material with an abrasive wheel. General-purpose
Grinding Machines are utilized for sharpening tools, smoothing surfaces, and achieving precise
dimensions. These machines come in various configurations to meet diverse manufacturing
needs. Furthermore, the integration of DRO (Digital Readout) Machines provides accurate
position feedback, aiding operators in executing precise movements. This advanced equipment
underscores Autologic Technologies' commitment to excellence and innovation in the automotive
industry.
Autologic Technologies excels in providing comprehensive solutions across various domains,
including process control and automation, electrical and instrumentation, and mechanical and
piping process utilities. Their expertise in Process Control & Automation ensures optimized
operational efficiency and reliability through advanced robotic and automation technologies. In the
realm of Electrical & Instrumentation, they deliver precision and safety, integrating state-of-the-art
electrical systems and instrumentation to meet the stringent demands of modern industries.
Additionally, their capabilities in Mechanical & Piping Process Utilities encompass the design,
fabrication, and installation of high-quality mechanical and piping systems, essential for
maintaining seamless industrial operations. Autologic Technologies' holistic approach and cutting-
edge solutions make them a trusted partner in driving industrial performance and innovation.

Autologic Technologies is a leading provider of advanced industrial solutions, specializing in

process control and automation, electrical and instrumentation, and mechanical and piping
process utilities. Their state-of-the-art in-house manufacturing facility features precision
engineering and fabrication capabilities, including jig boring, milling, surface grinding, general-
purpose grinding, and DRO machines. With a commitment to excellence, Autologic Technologies
delivers optimized operational efficiency, precision, and reliability, making them a trusted partner
in driving innovation and performance in the automotive industry.

SWOT Analysis
Autologic Technologies stands out in the automotive and industrial solutions market with its
advanced manufacturing facility and a comprehensive range of services. Equipped with
specialized machinery such as jig boring, milling, surface grinding, general-purpose grinding, and
DRO systems, the company ensures precision and high-quality output. Their expertise spans
process control and automation, electrical and instrumentation, and mechanical and piping
process utilities, catering to diverse industrial needs. A skilled workforce drives innovation and
performance, contributing to a robust growth trajectory marked by consistent revenue increases,
culminating in INR 50 million in 2021. Known for setting new benchmarks in the automation
industry, Autologic Technologies delivers world-class products at competitive prices, reinforcing its
strong market position.
However, the company faces certain challenges and opportunities. Heavy reliance on the
automotive industry exposes it to sector-specific risks, while the high initial costs and operational
complexities of advanced machinery pose financial and managerial challenges. Nonetheless,
opportunities abound in expanding into new markets, leveraging technological advancements,
forming strategic partnerships, and embracing sustainability initiatives. Economic fluctuations,
intense competition, technological obsolescence, and supply chain disruptions are potential
threats that Autologic Technologies must navigate. By addressing these weaknesses and threats
while capitalizing on its strengths and opportunities, the company can continue to drive innovation
and maintain its competitive edge in the industry.

PESTEL ANALYSIS
Autologic Technologies operates within a multifaceted landscape shaped by significant PESTEL
factors. Politically, navigating regulatory environments and trade policies is crucial for ensuring
operational continuity and cost-effectiveness. Economically, fluctuations in exchange rates and
economic growth directly impact market demand for its automotive technologies. Socially,
adapting to evolving consumer preferences and fostering a skilled workforce are pivotal for
sustaining innovation and operational excellence. Technologically, investing in automation and
cybersecurity remains paramount to enhancing product offerings and safeguarding intellectual
property. Environmentally, embracing sustainability practices and robust resource management
aligns with global trends and regulatory expectations. Legally, adhering to stringent compliance
standards and protecting intellectual property rights underpin its competitive advantage and
ethical operations. By strategically addressing these interconnected factors, Autologic
Technologies can fortify its market position, capitalize on growth opportunities, and navigate
challenges effectively in the dynamic industrial solutions sector.
Goldratt's Theory of Constraints-: It is a management philosophy that focuses on identifying and
addressing the most significant limiting factor (constraint) that stands in the way of achieving a goal. In the
context of Autologic Technologies, a company specializing in advanced automation and manufacturing
solutions, applying TOC can help optimize their production processes and enhance overall efficiency.
Understanding TOC in Autologic Technologies
Internal Constraints: what we have noticed while doing the reseach that there are specific machines,
production processes, and workflows within Autologic Technologies' manufacturing facility that limit the
overall production capacity. For instance, if one of the CNC or VMC machines has a lower output rate
compared to other machinery, it becomes the bottleneck that restricts the entire production line.
External Constraints: It include supply chain issues, such as delays in receiving raw materials or
components from suppliers, or market demand constraints that limit the company’s ability to sell its
products.
Maximize Utilization: It involve optimizing the machine’s operation schedule, reducing downtime, or
streamlining workflows to ensure continuous and efficient use.
Prioritize Tasks: Schedule tasks in a manner that the constraint is always busy with high-priority work
that directly contributes to the throughput. For example, if a specific VMC machine is the bottleneck,
the manufacture should ensure that it is continuously fed with high-priority jobs without unnecessary
delays.
Align Processes: Adjust other processes to support the maximum utilization of the constraint. This
means ensuring that upstream and downstream processes are synchronized with the pace of the
bottleneck. For Autologic Technologies, it involve ensuring that materials are prepared and ready
before they reach the bottleneck machine, and finished products are promptly moved away to avoid
clutter.
Invest in Improvements: If the constraint remains a bottleneck despite optimization efforts, the
manufacturer should consider investing in upgrades or additional resources. For example, Autologic
Technologies could invest in acquiring an additional CNC machine or upgrading the existing bottleneck
machine to enhance its capacity.
Training and Maintenance: Provide additional training to operators and ensure rigorous maintenance
schedules to prevent breakdowns and enhance the machine's performance. TOC is an ongoing
process. Once one constraint is resolved, another may emerge. Continuously monitor production
processes to identify and address new constraints. This iterative approach ensures sustained
improvement and efficiency.
By applying Goldratt's Theory of Constraints, Autologic Technologies can systematically improve its
manufacturing processes, reduce delays, and enhance overall productivity. This approach not only
addresses immediate bottlenecks but also fosters a culture of continuous improvement and operational
excellence.

PROBLEM STATEMENT
Current Scenario - After conducting a comprehensive analysis of the project, it has been determined that the
completion of project work currently requires 29 days, whereas the targeted completion time is set at 21 days. This
indicates a delay of 8 days beyond the desired timeline. To address this issue effectively, there is a necessity to
implement project crashing methodologies to identify and mitigate the underlying causes of the delay. Project
crashing involves accelerating project timelines by allocating additional resources or optimizing existing
processes, which is critical in reducing the cycle time to meet the target.
Research Gap- Despite the widespread recognition of PERT and CPM in project management
literature, their application in the intricate environment of industrial manufacturing remains
underexplored. Studies by Kerzner (2017) and Meredith & Mantel (2019) highlight the effectiveness of
these methodologies across various industries but note a lack of extensive application in manufacturing
settings. Moreover, while lean manufacturing principles and Six Sigma methodologies have been
widely discussed, integrating network-based project management techniques like CPM and PERT into
these frameworks is limited.

Furthermore, the identification and management of bottlenecks, as discussed in Goldratt's Theory of

Constraints (TOC), are critical areas of research. Recent studies suggest that combining TOC with
CPM and PERT could offer a robust approach to bottleneck management in manufacturing
environments. Lastly, while project crashing techniques are vital for meeting strict deadlines, there is a
scarcity of empirical studies that validate their effectiveness specifically in the manufacturing industry.

Goals of the Research

The following are this study's main objectives:
1.Find bottlenecks and Reduce the Length of Activities: This research attempts to identify bottlenecks
and efficiently shorten activity durations by applying PERT and CPM approaches in Autologic
Technologies' production processes.
2.Construct a Complete Framework: The goal of the study is to offer a comprehensive framework that
combines PERT, CPM, and bottleneck management techniques unique to the manufacturing industry.
This framework will provide a thorough method for improving operational efficiency in the context of
manufacturing.
3.Examine Project Crashing Methodologies: to impartially evaluate Autologic Technologies' project
crashing solutions' effectiveness in reducing cycle durations and maximizing project completion costs.
This entails putting different project crashing techniques to the test empirically in order to evaluate their
usefulness.

This study aims to close these research gaps, add to the body of knowledge on manufacturing process
optimization, and provide Autologic Technologies with useful solutions. The results are anticipated to
have wider ramifications for the manufacturing sector, offering a thorough method for raising efficiency
and lowering costs by utilizing cutting-edge project management techniques. By putting these
techniques into practice, Autologic Technologies can not only achieve project deadlines but also create
an industry standard that other businesses may strive to match.

In conclusion, the integration of PERT and CPM methodologies with project crashing techniques
presents a promising approach to addressing delays in manufacturing processes. This research will
bridge the existing gaps in literature by applying these advanced project management strategies to a
real-world manufacturing context. The outcomes are anticipated to significantly enhance operational
efficiency, reduce cycle times, and optimize project costs, thereby enabling Autologic Technologies to
maintain a competitive edge in the fast-evolving industrial landscape.

Literature Review: Minimizing Cycle Time and Optimizing Project Completion Costs using
CPM and PERT

The primary goal of this paper is to minimize cycle time and optimize project completion costs at
Autologic Technologies by identifying bottlenecks and streamlining activity durations. The
methodology includes gathering comprehensive data from the manufacturing unit, covering
manufacturing time, process time, process flow, and purchase time. Using CPM and PERT techniques,
the study aims to create an optimized project timeline, reducing the current 29-day project duration
to a target of 21 days. Findings from similar studies consistently indicate that CPM and PERT are
effective in pinpointing critical activities and optimizing project schedules. These techniques are
instrumental in identifying bottlenecks and efficiently allocating resources, which are crucial for
reducing project timelines and costs. This paper examines the concept of crashing and its application
in reducing project duration and costs. The project's Pert value of 29 days and critical path highlight
the need for efficient task management and adherence to deadlines. An 8-day delay emphasizes
execution challenges, necessitating proactive measures like project crashing.

The project's progression, from customer requirements analysis to final product delivery, is outlined.
It begins with identifying customer needs and moves through planning, design, and sample creation,
all in line with customer specifications. Subsequent steps involve detailed design, bill of materials
(BOM) creation, and resource allocation strategies based on internal capabilities and outsourcing
needs. Quality assurance processes, including inspections at goods receipt and final stages, ensure
product quality. Customers buy-off signifies project completion and customer satisfaction.
Data collection focused on manufacturing time, process time, process flow, images of the manufacturing
unit, and purchase time. Each of the five project participants addressed specific issues to resolve factory
delays. The factory comprises three CNC machines and three VMC machines, with a supplier of welding
checking fixtures and SPMs to Faurecia TTID and Toyota branches. The aim is to enhance industrial
performance through robotic process automation. Consistent findings from various studies suggest that
CPM and PERT effectively identify critical activities and optimize project schedules. Implementing these
methodologies at Autologic Technologies can significantly reduce project timelines and costs, thereby
improving operational efficiency and competitiveness in the automotive industry.

Research methodology- It refers to the systematic, theoretical analysis of the methods applied to a field of study. It encompasses the
concepts, processes, and techniques used to collect, analyze, and interpret data. The methodology provides a framework that guides the
R research process and ensures that the findings are credible, valid, and reliable.

RESEARCH METHODOLOGY

Phase 1 Work breakdown structure Data Collection of Manufacturing time

Phase 2 Identification of critical Path Development of Project Network

Phase 3 Project Crashing cost efficiency Optimum scheduling cost

Phase 1 – Work Breakdown Structure

Defination- A Work Breakdown Structure (WBS) is a hierarchical decomposition of a project into smaller, more manageable components.
The primary purpose of a WBS is to organize and define the total scope of a project. Each descending level represents an increasingly
detailed definition of project work.
Phase 1- Data Collection of Manufacturing time
Data collection of manufacturing time involves systematically gathering information related to the time
required for different processes and stages in the manufacturing of a product. This data is crucial for
optimizing production efficiency, reducing costs, and improving overall workflow. The key point of
manufacturing data collection is today days taken for each process, cost involved in different processes
including parts that are purchased for assembly and final transport to client.

OBJECTIVES

The project aims to pinpoint bottleneck areas within the current process, ascertain the critical path
duration of the project, minimize project cycle time, and lower production costs through the application of
project management methodologies.

Data Collection

1. Manufacturing Time: Time taken for various manufacturing processes.

2. Process Time: Duration of individual tasks within the manufacturing process.
Processes with Flow:
3. Process its sequence:
Sequence and dependencies of manufacturing activities.
4.
Process Purchase Time: Time required
Time Requiredfor procurement
in days- of materials
Resource and components.
Predecesso
Process
ID 5. Images: Visual documentation
Approxof the manufacturing
Allocated unit. r
A RFQ 1 1 None
B Concept 2 1 A
 C Review/Feedback 1 B
D Update/Approval 1 C
E Final Design/BOM 3 D
1
F Drafting 2 E
G Purchase- in house 7 1 E
H Purchase-OEM 14 1 E
I Machining 5 2 F, G
J Finishing 1 1 I
K QC of Each part 3 1 J
L Assembly 3 2 H, K
Final
M 1 1 L
Inspection/CMM
N Buy off 1 1 M
O Dispatch 1 2 N
P Integration 1 1 O

Process B, C and D are done by 1 person over a period of 4 days.

One designer is assigned for Final design and drafting.
Purchase – in house – are the raw material that are machined before assembly including the one
outsourced.
Purchase – OEM – raw material that are purchase and directly used in assembly.

Machining Work Flow:

Part
number Process Qty R/P in days Machining in hours Finish QC Time
A01 CNC Machine 1 4
A02 Turning 4 Outsourced - 1 day
A03 Turning 1 Outsourced - 1 day
A04 Turning 1 Outsourced - 1 day
A05 Wirecut 4 6
A06 Turning 4 Outsourced - 1 day
B01 CNC Machine 1 7
B02 CNC Machine 2 5
B03 CNC Machine 2 5
C01 CNC Machine 1 5.5
C02 CNC Machine 1 7 3 1 Day 3 days
C03 Turning 4 Outsourced - 1 day
C04 Turning 2 Outsourced - 1 day
C05 Turning 2 Outsourced - 1 day
C06 Turning 2 Outsourced - 1 day
D01 CNC Machine 1 1
D02 Turning 2 Outsourced - 1 day
CNC
D03 Machine/Welding 1 3
E01 CNC Machine 1 2.5
E02 CNC Machine 1 3
Consider 3 to 4 Hours buffer on whole if any tools are not available
To fit, have cut the network into half and pasted image (excel working file is attached as well)

Phase 2.1 - Identification of critical Path

Definition of Critical Path
The critical path is the longest sequence of dependent tasks that must be completed on time for the entire project
to be completed by its deadline. It represents the shortest possible duration to complete a project if all tasks along
this path are completed as scheduled. The key concept of critical path is tasks and activities, dependencies,
duration, and slack/float. The importance of Critical path Project scheduling, Risk Management, Resource
allocation, Progress Monitoring and to optimize the workflow. Critical path plays vital role in project management
it determines the list of all tasks, determine dependencies, network diagram, identifying the longest path. By
identifying
Critical and
path is managing the critical path, project managers can ensure that the project stays on track, resources
A-B-C-D-E-G-I-K-L-M-N-O-P.
are efficiently allocated, and potential delays are minimized.
Target time given by customer is 21 days, however estimated time is 29 days. (below is the calculation)
Expected Time
Most Likely Pessimistic
Process ID Process Optimistic(a) (te=(a+4m+b)/6 (b-a/6)² Predecessor
(m) (b)
)
A RFQ 0.5 1 3 1 0.17 None
B Concept 1 2 4 2 0.25 A
 C Review/Feedback 0.5 1 3 1 0.17 B
D Update/Approval 0.5 1 3 1 0.17 C
E Final Design/BOM 1 3 5 3 0.44 D
F Drafting 1 2 4 2 0.25 E
Purchase- in
G 3 7 12 7 2.25 E
house
H Purchase-OEM 7 14 20 14 4.69 E
I Machining 2 5 7 5 0.69 F, G
J Finishing 0.25 1 2 1 0.09 I
K QC of Each part 1 3 5 3 0.44 J
L Assembly 0.5 1 2 1 0.06 H, K
Final
M 0.5 1 2 1 0.06 L
Inspection/CMM
N Buy off 0.25 1 2 1 0.09 M
O Dispatch 0.25 1 2 1 0.09 N
P Integration 0.25 1 2 1 0.09 O

Variance of Critical Path is 5.07 and Standard Deviation is 2.25

Z is calculated by formula

Ts is 21, Te is 29 and σc is 2.14.

Z = -3.55.
From z table the probability to finish in 21 days is 2%.

Hence to finish the project in time, project crashing is needed by either overtime or assigning more
resources for a critical activity, this will lead to an extra cost.

Next, we will evaluate the resource allocated each day and the cost involved without crashing.
Here we are making use of Gantt Chart.
A Gantt chart is a project management tool that illustrates work completed over a period of time in
relation to the time planned for the work. (ref)
A max of 3 resources is needed on 9th, 10th and from 16th to 21st day.
There are few tasks which we can move by few days, as this project needs crashing by 8 days we will focus
on more resource allocation to finish the task early.
Below is the normal cost involved: (Estimated timeline)
Part number Process Qty Machining in hours Material Cost Machining Cost Overall Cost
A01 CNC Machine 1 4 2100 2200 ₹ 4,300.00
A02 Turning 4 Outsourced - 1 day ₹ 1,000.00
A03 Turning 1 Outsourced - 1 day ₹ 850.00
A04 Turning 1 Outsourced - 1 day ₹ 2,050.00
A05 Wirecut 4 6 200 2200 ₹ 2,400.00
A06 Turning 4 Outsourced - 1 day ₹ 850.00
B01 CNC Machine 1 7 350 3800 ₹ 4,150.00
B02 CNC Machine 2 5 100 2700 ₹ 2,800.00
B03 CNC Machine 2 5 100 2700 ₹ 2,800.00
C01 CNC Machine 1 5.5 350 2800 ₹ 3,150.00
C02 CNC Machine 1 3 120 1650 ₹ 1,770.00
C03 Turning 4 Outsourced - 1 day ₹ 500.00
C04 Turning 2 Outsourced - 1 day ₹ 400.00
C05 Turning 2 Outsourced - 1 day ₹ 600.00
C06 Turning 2 Outsourced - 1 day ₹ 1,600.00
D01 CNC Machine 1 1 50 400 ₹ 450.00
D02 Turning 2 Outsourced - 1 day ₹ 700.00
D03 CNC Machine/Welding 1 3 350 1000 ₹ 1,350.00
E01 CNC Machine 1 2.5 150 300 ₹ 450.00
E02 CNC Machine 1 3 150 300 ₹ 450.00
₹ 32,620.00
Purchase - OEM
- parts that are
not machined,
Part Number OEM Lead time in Days OEM Part cost
it's purchased
and used for
assembly
BLP12-50 Local 5
₹ 3,000.00
BLP16-60 Local 5
₹ 3,000.00
Magnet Local 5
₹ 100.00
pneumatic Cylinders SMC 14
₹ 10,000.00
Fittings SMC 14
₹ 1,500.00
Tubes SMC 14
₹ 300.00
Flow Controller SMC 14
₹ 1,500.00
Sensors Omron 14
₹ 3,500.00

₹ 22,900.00

Overall Material and Machining ₹ 55,520.00

Labor Cost ₹ 16,026.00 Considering for this particular project (in a month they work on 4 projects)
Transport Cost ₹ 1,500.00
 TOTAL COST ₹ 73,046.00
PO GROSS VALUE (with
₹ 112,100.00
GST)
PROFIT ₹ 39,054.00
PROFIT AFTER TAX ₹ 21,954.00
Profit Margin 23%

To crash the Project, we have to see which all process we can reduce time.

Phase 3- Project Crashing and Cost Phase 3- Optimum Scheduling Cost

Efficiency
Optimum Scheduling Cost refers to the
Project Crashing refers to a project minimum total cost required to complete a
management technique used to project within a given time frame. It involves
shorten the duration of a project balancing the trade-off between project
without changing its scope. This is duration and project costs, ensuring that the
achieved by adding additional project is completed as efficiently and
resources to critical path tasks, which economically as possible without compromising
are the tasks that directly affect the on quality or scope.
project's completion time. The goal of
project crashing is to meet a deadline, Formulas Used while crashing the cost from the
often at an increased cost. project Cost-:

Cost Efficiency in project management

refers to the optimal use of resources
 Crash cost per day = (Crash cost) /
to achieve the desired outcomes (Normal duration - Crash duration)
within the allocated budget. It involves
maximizing output or results while
minimizing costs. Cost efficiency is a  Crash Cost per Unit Time=Normal
Duration−CrashDuration/Crash
measure of how well resources are
Cost−Normal Cost
utilized to complete a project
effectively and economically.

Here the fixture is sold as on whole unit and order is placed for 1 unit by the client.
Process involves RFQ, paper works, designing, purchase, machining, finishing, assembly, QA
inspection and dispatch.

We have few processes that takes a minimum of 1 day and it cannot be crashed, let’s looks at the
process involved again with time post crashing.

Process Time Required in days- Resource

Process Post Crashing
ID Approx Allocated
A RFQ 1 1 1
B Concept 2 1
2
C Review/Feedback 1 1
 D Update/Approval 1 1
E Final Design/BOM 3 3
1
F Drafting 2 2
G Purchase- in house 7 5 1
H Purchase-OEM 14 10 1
I Machining 5 3 3
J Finishing 1 1 1
K QC of Each part 3 2 2
L Assembly 1 1 2
Final
M 1 1 1
Inspection/CMM
N Buy off 1 1 1
O Dispatch 1 1 2
P Integration 1 1 1

We will be allocating an additional resource for Concept, Machining and QC to reduce time taken by
4 days.
Additional 2 days will be reduced by purchasing from Vendor who can give early but at an extra cost.
Part
Process Qty Machining in hours Total Machining Hours
number
A01 CNC Machine 1 4 4
A05 Wirecut 4 6 24
B01 CNC Machine 1 7 7
B02 CNC Machine 2 5 10
B03 CNC Machine 2 5 10
C01 CNC Machine 1 5.5 5.5
C02 CNC Machine 1 3 3
D01 CNC Machine 1 1 1
D03 CNC Machine/Welding 1 3 3
E01 CNC Machine 1 2.5 2.5
E02 CNC Machine 1 3 3

Facility has 3 CNC machines that simultaneously works on various projects.

For this project 1 CNC is assigned for whole day i.e. 16 hours shift. - with 1 resource each from morning and
afternoon shift.
Productive hours i.e. Machining hours is considered 14 hours.
2 hours for operator break and tool change time/breakdown or downtime.
1 extra manpower with second CNC will be assigned for 8 hours for 3 days to work on A05.
Rest of the parts will be done by initial assigned operator is 3 days.

For Concept and QC – 1 additional resource added without compromising on cost as that resource
is available 2 day.

Updated Cost post crashing:

Part Machining in Total Machining Material Machining
Process Qty Overall Cost OT
number hours Hours Cost Cost
A01 CNC Machine 1 4 4 2100 2200 ₹ 4,300.00
A05 Wire cut 4 6 24 200 2200 ₹ 2,400.00 ₹ 2400
 B01 CNC Machine 1 7 7 350 3800 ₹ 4,150.00
B02 CNC Machine 2 5 10 100 2700 ₹ 2,800.00
B03 CNC Machine 2 5 10 100 2700 ₹ 2,800.00
C01 CNC Machine 1 5.5 5.5 350 2800 ₹ 3,150.00
C02 CNC Machine 1 3 3 120 1650 ₹ 1,770.00
D01 CNC Machine 1 1 1 50 400 ₹ 450.00
CNC
D03 1 3 3 350 1000
Machine/Welding ₹1,350.00
E01 CNC Machine 1 2.5 2.5 150 300 ₹ 450.00
E02 CNC Machine 1 3 3 150 300 ₹450.00

Part Number OEM Lead time in Days OEM Part cost

BLP12-50 Local 5 ₹ 3,000.00
BLP16-60 Local 5 ₹ 3,000.00
Magnet Local 5 ₹ 100.00
Pneumatic Cylinders SMC 10 ₹ 10530.00
Fittings SMC 10 ₹ 1,623.00
Tubes SMC 10 ₹ 300.00
Flow Controller SMC 10 ₹ 1,550.00
Sensors Omron 10 ₹ 3,575.00
₹ 23678.00

To crash by 6 days additional cost of Rs.3178 to be taken.

Target time is 21 days; however, client is okay to wait for 2 more days with same selling price.
(buffer of ±2 days is allowed to avoid penalties)
We can crash by 2 more days by additional resource to meet target of 21 days however that will
impact profit by 5% for current project and also of other 3 projects at hand and there is a constraint
on resource availability, hence Autologic Technologic is okay to complete this by 23 days.
Updated Gantt Chart:

Updated Profit:
Total Cost = Rs.73046 + Rs.3178 = Rs.76224
Profit = Rs.112100 – Rs.76224 = Rs.35876
Proft After Tax = Rs.35876 – Rs.17100 = Rs. 18776, Profit Margin – 19.76% (reduced by 3.35%)

Application of the various techniques-:

Recommendation & Findings-:
Reference and Bibliography -:
Conclusion -: