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OPERATIONS MANAGEMENT EXAM Prof. Alberto Portioli Staudacher, Prof. Matteo Rossini December 19th, 2024 Lean Exercise (13 Points) BIY is a bracelet jewelry manufacturer that produces both standard bracelets and customized bracelets. The average demand for bracelets is 800 bracelets per week (760 standard bracelets and 40 customized bracelets), with a standard deviation of 40 bracelets per day. Customers require to receive standard bracelets immediately after placing the order, however, for customized bracelets they are willing to wait 30 days to receive their order. The demand for customized bracelets is quite stable. The range of standard bracelets is composed of 300 variants: 3 materials, 5 sizes, 10 shapes, and 2 engravings. All variants of standard bracelets are requested every day. As for customized bracelets, customers ask to customize the shape and engraving (materials and sizes offered for customized bracelets are the same as the ones offered for standard bracelets) . The customization process starts at the shaping stage. Each customized bracelet is unique, different from all other standard and customized bracelets (in terms of shape and/or engraving). The factory works 5 days per week. Each shift lasts 8 hours and there are two 15 minutes breaks per shift. Production process: ▪ Cutting: An automated cutting machine cuts the material into the desired length. One operator must supervise the machine throughout the process. The machine requires a setup every time the material or size is changed. ▪ Shaping: Five stations work in parallel with one operator at each station. At each station the operator performs all necessary activities (from start to end) to shape the bracelet. At each station, the operator uses some tools to perform the following manual activities:…