In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which the primary mode of operation should be and exactly why. A detailed description on how management can keep track of the job status and location during production will also be addressed. Finally, there will be a recommendation on they type of changes that need to occur that will be beneficial to the company and at the same time add value to the customer. This paper will conclude with summary of the major points. Overview This company manufactures tables and cabinets to hold microwave ovens and portable televisions. Looking at the data, it is apparent that there are ways to make this company more efficient in their manufacturing processes while looking at the overtime hours involved in the operations. Most of this companies products follow the very same assembly and production lines with the difference being that the Saturn microwave stand and the Gemini TV stand both contain a part refered to as 3079 which requires a special lathe in the production phase. This lathe requires a highly train... ... middle of paper ... ...ttp://newmrp.com/new-mrp-2/ Noori, S., Feylizadeh, M. R., Bagherpour, M., Zorriassatine, F., & Parkin, R. M. (2008). Optimization of material requirement planning by fuzzy multi-objective linear programming. Proceedings of the Institution of Mechanical Engineers, 222, 887-900. Retrieved from http://search.proquest.com/docview/195144743?accountid=32521 Robinson, E. P., & Sahin, F. (2001). Economic production lot sizing with periodic costs and overtime. Decision Sciences, 32(3), 423-452. Retrieved from http://search.proquest.com/docview/198075992?accountid=32521 Spence, A. M., & Porteus, E. L. (1987). Setup reduction and increased effective capacity. Management Science, 33(10), 1291. Retrieved from http://search.proquest.com/docview/213309041?accountid=32521 Vonderembse, M.A. & White, G. P. (2013). Operations Management. San Diego, Ca: Bridgepoint Education, Inc.
In addition, on day 105, the reorder quantity was 13,200. This approach was effective as it increased the number of inventory kits available for production. In total, the company used $2,059,000 to increase its inventory levels. The increased inventory levels and the readjustments of reorder points enabled the factory to increase the number of jobs accepted each day as well as to reduce the number of jobs waiting for kits. In addition, there was a high number of kits queued at station one from day 80 which was accompanied by increased utilization of station one. Besides, we were able to reduce the lead time for all the orders and this enabled the company to increase its revenues.
Garbato, Debby. “A Model Of Efficiency.” Retail Merchandiser 44.6 (2004): 16-20. Business Source Premier. Web. 26 Feb. 2012
Ebert Ronald J and Griffin Ricky W. (2011). Operations Management and Quality (8th edition) Business Essentials.(pp.128-132), Boston [Mass];London: Pearson.
2.) Russell, Roberta S., and Taylor, Bernard W., Operations Management, 4th Edition, ch. 11, pg. 511-535.
Planning challenges start with specification of client’s demand that must be met by the production plan. It is not easy to predict the exact future demand and thus sometimes future demand is not known (Graves 1999). This results to a firm relying on forecasting to predict the future demand. It is thus important for a company to formulate a plan that comes from the demand uncertainty. Alternatively it is important for a firm to revise the predicted figures frequently in order to update the forecast. This is done using the optimization models. It is very important for a firm to identify the relevant costs in a production planning. It is important to determine the variable costs of production, holding cost/carrying costs and set up costs (Graves 1999).
Carpenter, M., Bauer, T., Erodogan, B., & Short, J. (2013). Principles of management. (2nd ed.).
Requirements planning systems under deterministic demand. Production Planning & Control, 7(2), 144. Retrieved from EBSCOhost.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
TOC was initially a manufacturing method, but evolved and developed into a theory about management in many forums and arenas of business. The TOC philosophy applies to any organization that has a constraint and has been useful in discovering either one constraint or many small constraints that can plague and dominate an entire system. The secret of the TOC’s success lies within managing the constraints that are found in the process or subsystem while managing the entire process to gain the most benefit out of the complete system. Drum-Buffer-Rope scheduling theory, another of Goldratt’s scheduling techniques, is a metaphor to understand the flow of a supply chain by increasing throughput by adjusting buffers by utilizing a rope and controlling the speed of the supply chain by a drum. The metaphor for the Drum-Buffer-Rope could find application with the TOC, where adjustments need to be made anywhere along the process where functions happen too soon or not soon enough in order to keep the process moving at the same pace throughout. Utilization of this theory and identifying the constraints with the TOC are among some of the general principles espoused in Goldratt’s book, The Goal, which has proven useful for successful manufacturing and process management (Balderstone & Mabin,
Slack, N., Johnston, R. and Brandon-Jones, A. (2011).Essentials of operations management. 1st ed. Harlow, England: Financial Times Prentice Hall.
Siemens Electric Motor Works was the only factory in West Germany to manufacture electrical motors after the World War two. Because of the lower labor rates of its competitors, the management decided to produce low volume of special A/C motors rather than high volume of standard motors. Accordingly, in order to match the new strategy, EMW applied new cost system instead of the traditional cost system due to some problems. Firstly, the traditional cost system could not provide correct information when calculated support related costs of customized motors. Secondly, the traditional cost system unable to reflect the relationship between the increased support costs and change in product mix (“Siemens Electric Motor Works, 1997”).
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp
2. Kinicki, Angelo, Williams, Brian Management, a practical introduction, Second Edition. New York, New York, McGraw-Hill 2006/2003
Span and Control – This element pertains to such issues as the number of subordinates under the direct supervision of a manager. It is extremely important to take into consideration a larger pool of subordinates can equate to efficient cost, but to...
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which