Sonic Speakers

Download Full Case Description in PDF format

Date approved for distribution: September 13, 2004

Author:

Richard R. Lindeke, PhD
Professor
Department of Mechanical & Industrial Engineering
University of Minnesota Duluth
Duluth, MN 55812

Keywords:

Assembly Line Design
Group Technology
Facility Layout
Material Handling
Production/Manufacturing
Capacity Analysis
Product Flow Analysis

Abstract: Sonic Speakers is a manufacturer and distributor of audio speaker systems. Their entire product line includes electronic sound systems, speaker systems, equipment cases and lighting equipment for professional use. They ship to both large and small retailers by way of a third party trucking company. Sonic outgrew its existing warehouse/ manufacturing facility and has acquired a new building. This new building will house offices, manufacturing, distribution and warehousing of finished goods, raw materials and packaging supplies. Sonic Speakers currently operates its manufacturing and shipping staff on a 10 hour schedule. They wish to remain on this schedule.

LEARNING OBJECTIVES
The case is designed for use in a junior or senior level facility design, material handling, or production & operations management class. The learning objectives are:

To analyze a real material handling design problem similar to ones found in practice
To make reasonable assumptions related to given data sets, and make reasonable engineering decisions
To learn how to estimate material flow, inventory, and space requirements
To perform assembly line balancing and work station design
To specify material handling equipment
To conduct a complete economic analysis (optional)
To build a computer simulation (optional)

COMPLETION TIME
If worked in teams of 3-5 students, it should take about 5 weeks for students to develop and justify a reasonable solution, write a formal report and make a presentation of findings. If the instructor expects a detailed computer simulation and economic analysis, the case could take up to 10 weeks to complete.

SKILLS REQUIRED
The case, as designed, targets a manufacturing and warehousing environment. It expects students to analyze somewhat limited data sets and reason out immediate needs and long term growth plans for a company experiencing a market shift. Because of the breath of desired outcomes, it could be used in a variety of classes and with students at different levels. Students should be able perform basic data analysis using spreadsheets, and should at least be familiar with basic material handling equipment (conveyors, lift trucks, pallets, etc.) They should also be able to perform basic flow calculations and find volume-distance products to compare designs. Students should be able to compute assembly line balances and be familiar with the ideas of cellular manufacturing techniques. If the instructor requires students to perform the economic justification of the alternative facility designs, some basic engineering economics (time value of money, net present worth, and internal rate of return techniques) would be needed. If the instructor assigns the optional simulation requirement, students would need to have some computer simulation skills.

CLASSROOM TESTING
This case was used as the basis for the 2002-2003 Material Handling Student Design Competition sponsored by the College Industry Council for Material Handling Education, Design Plans & Ideas, and Gross & Associates so it has been classroom tested by the author and the many other instructors whose teams submitted entries. Based on the results of that experience, it is clear that (like all cases) Sonic Speakers does not provide students with every possible detail needed to provide an exact solution. The case problem was developed from a study conducted by Gross and Associates for a client. As expected with all real world problems there may be inconsistencies or incomplete description of the data provide. As such then, students will be forced to use engineering judgment concerning the data and will be required make and justify appropriate assumptions.

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