Level operation is a small company located in eastern Pennsylvania; it produces a variety of security devices and safes. The safes come in several dif...
International Human Resource ManagementFull description
Lesson 7 Case Studies
1
Case Study of Week 7th Level Operation Bishnu Dhamala MGT 620 Operations Management & Supply Chain August 22, 2014
Lesson 7 Case Studies
2
Introduction Level operation is a small company located in eastern Pennsylvania; it produces a variety of security devices and safes. The safes come in several different designs. Recently, a number of new customers have placed orders, and the production facility has been enlarged to accommodate increased demand for safes. Production manager Stephanie Coles is currently working on a production plan for the safes. She needs a plan for each day of the week. She has obtained the following information from the marketing department on projected demand for the next five weeks: Model
S1
S2
S7
S8
S9
Weekly Qty
120
102
48
90
25
The department operates five days a week. One complexity is that partially completed safes are not permitted; each cycle must turn out finished units: Core Issues: What might Stephanie determine as the best production quantity per cycle for each day of the week?
Lesson 7 Case Studies
3
Analysis and Evaluation From the case as we know that, Small Company located in Pennsylvania, manufacturers a variety of security devices as well as safes. Numerous different models of safes (S7-S8-S9-S1S2) are available for purchase and due to increased demand the production facility has been enlarged to accommodate the additional production needs. Production manager named Stephanie Cole must conclude the best production quantity per cycle for each day of the week as per the given case. She already understand that to some extent completed safes are not permitted (each cycle must turn out finished cycles). Then after she consulted engineering department; where they have determined the best production sequence is S7-S8-S9-S1-S2 as per the case which is given. She needs to comprehend the large picture of production demand in order to ensure the product availability to meet the needed demand. The eventual goal should be a balanced operation system as well as she has to think about market demand, inventory policy, and Nature of the product in production plan. One that makes the process time as short as possible, eradicate disruptions and eliminate waste (excess inventory). Stephanie was given weekly quantity demands; she must first break those numbers down to daily production demands, determine the number of cycles to run daily, and how many of each safe model to produce in any given cycles as shown in Figure 1. The given cycle time is 5, as the least demand for daily production is 5. S.N Model
Weekly
Daily
Daily real
Demand
Production
production
Units/Cycle
1
S1
120
120/5=24
24
24/5=4.8
2
S2
102
102/5=20.4
21
21/5=4.2
Lesson 7 Case Studies
4
3
S7
48
48/5=9.6
10
10/5=2
4
S8
90
90/5=18
18
18/5=5
5
S9
25
25/5=5
5
5/5=1
FIGURE (I ).
MODEL TOTAL
When the inventory cost is high, firm can
S1
S2
S7
S8
S9
4
4
2
3
1
14
5
5
2
4
1
17
produce or manufacture When the inventory cost is low, firm can produce or manufacture FIGURE -II As per the case which is given a sequence by engineer, firm can produce or manufacture their respective number of mode in 5 cycle time are as follow: 1ST CYCLE
2ND CYCLE
3RD CYCLE
4TH CYCLE
5TH CYCLE
PRODUCTION
S7 (2)
S7 (2)
S7 (2)
S7 (2)
S7 (2)
10
S8 (3)
S8 (4)
S8 (4)
S8 (4)
S8 (3)
18
S9 (1)
S9 (1)
S9 (1)
S9 (1)
S9 (1)
5
S1 (4)
S1 (5)
S1 (5)
S1 (5)
S1 (5)
24
S2 (4)
S2 (5)
S2 (5)
S2 (4)
S2 (3)
21
Lesson 7 Case Studies
=14
5
=17
=17
=16
3EXTRA
3 EXTRA
2EXTRA
FIGURE-(III)
=14
Lesson 7 Case Studies
Recommendation: From the above analysis and evaluation, we came into the conclusion that Stephanie can choose low inventory policy or high inventory policy as per the holding costs as well as lost sells, Stephanie can propose as well as can suggest to production department for fulfilling above demand to manufacture the above item in the given cycle of sequential order as per the figure (iii).
6
Lesson 7 Case Studies
References: William J Stevenson (2010). Operational Management
