Operations Management in Practice - Essay Example

? and Section # of This paper aim to answer questions regarding two case studies, it would elaborate over the concepts of Material resource planning and Just in time techniques and show their implication in real life scenarios. MATERIAL REQUIREMENTS PLANNING Why did peter have such problems getting to the relevant information? There are a number of different activities that take place in order to complete one unit of production. As in the case of Psycho sports, one table tennis bat was made up of nine different parts put together through two assemblies. Psycho sports did not have any automated system to record the number of purchases being made and when they are used and how much stock is maintained in the inventory. As sales were increases and the buyers now included large retail stores, it was becoming increasingly important for psycho sports to keep track of the production in order to meet the demands in a timely fashion. Peter found it difficult to get all the information as the structure was entirely disintegrated and manual. There was no system that recorded the information and there was no single worker that managed the entire inventory levels and kept the information in an integrated form. There was no central database or system that held and updated all the information regarding the inventory levels of different parts. The data was all decentralized and with different workers responsible for different parts who were more often than not, unaware of the inventory levels. Furthermore, the purchasing was also manual, hence, there was no record of the number of item that were purchased and used. Exercise 1 (a) Draw a single level bill of material for each level of assembly; Face assembly Item no. Quantity 6511 Rubber Face 2 2547 Wooden Inner 1 8561 Foam Panel 2 Handle Assembly Item no. Quantity 1821 Handle 1 9110 Nail 2 (b) Complete indented bills of material Item no. Quantity Quantity 0499 1821 9110 Handle Assembly Handle Nail 1 1 2 7754 Shaft 1 0955 Connector 1 9110 Nail 4 8744 Rivet 4 0772 6551 2547 8561 Face Assembly Rubber Face Wooden Inner Foam Panel 1 2 1 2 Exercise 2 Create the materials requirements planning record for each part and sub-assembly of the bat Bat Lead Time: 2 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 500 500 100 400 100 500 300 100 700 100 600 100 500 100 400 100 300 500 100 200 150 500 100 150 450 500 150 300 150 500 150 150 500 150 350 500 150 200 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 500 50 500 200 300 200 500 100 500 200 400 200 500 200 200 500 200 300 Handle Assembly Lead times: 3 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 400 400 100 300 100 200 100 400 100 400 100 400 100 300 100 400 200 400 100 500 100 400 150 400 200 150 450 400 150 300 150 150 400 150 400 0 150 250 400 150 400 100 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 350 400 200 400 150 200 250 400 200 400 50 200 250 200 400 50 200 250 Face Assembly Lead time: 4 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 250 100 150 250 100 250 50 100 200 100 250 100 250 100 250 100 150 250 100 250 50 100 200 250 150 250 100 150 200 250 150 250 50 250 150 150 150 250 0 250 150 250 100 259 150 200 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 250 50 250 200 250 150 250 200 200 250 200 250 0 200 250 50 200 250 100 200 150 Shaft lead time: 5 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 1000 15 100 915 100 815 100 715 100 615 1000 100 515 100 415 100 315 100 1000 215 150 1115 150 965 150 815 150 665 1000 150 515 150 365 150 215 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 1000 65 1000 200 915 200 715 200 515 200 315 200 1000 15 200 915 Connector Lead times: 4 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross Requirement Planned Receipts On hand Planned Orders 100 350 100 250 100 150 100 5000 50 100 4950 100 4850 100 4750 100 4650 100 4550 150 4400 150 4250 150 4100 150 3950 150 3800 27 28 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 3650 150 3500 150 3350 200 3150 200 2950 200 2750 200 2550 200 2350 200 2150 Nail Lead time: 4 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross Requirement Planned Receipts On hand Planned Orders 100 120 100 5000 20 100 4920 100 4820 100 4720 100 4620 100 4520 100 4420 100 4320 150 4170 150 4020 150 3870 150 3720 150 3570 27 28 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 3420 150 3270 150 3120 200 2920 200 2720 200 2520 200 2320 200 2120 200 1920 Rivet Lead times: 4 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross Requirement Planned Receipts On hand Planned Orders 100 3540 100 3440 100 3340 100 3240 100 3140 100 3040 100 2940 100 2840 100 2740 150 2590 150 2440 150 2290 150 2140 150 1990 27 28 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 1840 150 1690 150 1540 200 1340 200 1140 200 940 200 740 200 540 200 340 Handle Lead time: 4 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 500 0 100 400 500 100 300 100 200 100 100 100 500 0 500 100 400 100 300 100 200 150 500 100 500 150 450 150 300 150 150 500 150 500 0 150 350 500 150 200 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 500 50 200 350 500 200 500 150 200 450 200 250 200 500 50 200 350 Rubber Face Lead time: 10 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross Requirement Planned Receipts On hand Planned Orders 100 2000 0 100 1900 100 1800 100 1700 100 1600 2000 100 1500 100 1400 100 1300 100 1200 150 1050 150 900 150 750 150 600 150 450 27 28 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 2000 300 150 2150 150 2000 200 1800 200 1600 200 1400 200 1200 200 1000 200 800 Wooden Inner Lead time: 7 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Gross Requirement Planned Receipts On hand Planned Orders 100 300 10 300 100 210 100 110 100 300 10 300 100 210 100 110 300 100 300 10 100 300 210 300 100 410 150 260 300 150 300 110 150 260 300 150 300 110 300 150 260 150 300 110 300 150 260 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 300 110 200 260 200 300 60 200 300 160 200 260 200 300 60 200 160 Foam Panel lead time: 8 weeks 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross Requirement Planned Receipts On hand Planned Orders 100 1000 0 100 900 1000 100 800 100 700 100 600 100 500 100 400 100 300 1000 100 200 150 1000 50 150 900 150 750 1000 150 600 150 450 27 28 29 30 31 32 33 34 35 Gross Requirement Planned Receipts On hand Planned Orders 150 300 150 1000 150 150 1000 200 800 200 600 200 1000 400 200 1200 200 1000 200 800 (b) The MRP shows that the lead times of the different parts and assemblies are different; hence, it is difficult to determine when to order which part. This also leads to backlogs and access inventory. When the sales are completed, there is often a lot of inventory that is left and this creates wastage. Moreover, it is difficult to keep track of the economic quantity of ordering and this adds to the complications to the ordering process. (c) To resolve this problem an automated system could be implemented that would keep track of all the inventory in a single database and order inventory when it reaches the minimum point in order to avoid backlogs as well as excess inventory. Furthermore, the quantities of ordering could be standardized to simply the system. (Monk & Wagner, 2007) JUST IN TIME To what extent could (or should) dean expect to apply the philosophies and techniques of JIT to the running of the staircase cell? Although the business process of the staircase cell involves customization according to the needs of the customers, the main functions are the same. These main processes make up the major chunk of the work. With the implementation of JIT techniques the process could be separated and workers would work over their allotted function. For example, some workers can be given the job to cut timber, some would be responsible for sanding, some workers would be running the machinery and so on. This way the process would flow through a series of steps. Customization could be done through specifying the details of the design and other specifications to each process areas. JIT centers upon continuous improvement and this philosophy is implemented through maintaining quality, flow and employee involvement in the work tasks from the start and till the end of the production process. (Betley et al. 2005) Making the work area free from clutter and forming an organized flow of work processes would make production simpler and quicker as orders would be completed in a timely manner. Having one person to take charge of the doors proved to be a success as it aided specialization. The job was done more efficiently when the workers focusing over a certain specialty rather than doing a number of different things together. Having applied the JIT technique there would be more efficiency in terms of meeting the estimates and deadlines in time. What are likely to be the main categories of costs and benefits in establishing the cell? Are there any non-financial benefits that could be taken into account? Establishing a separate cell would mean that there is a separate dedicated area to manufacture staircases. There is obvious upfront financial cost in setting up the separate production cell for the staircase. Moreover, there may be considerable reluctance from the workforce to work in a confined area as employees are usually reluctant to change. Most of the joiners were capable of making any product and they enjoyed the wide variety of challenging work. With JIT techniques in place, workers would be specializing in certain areas and although they could be rotated around, the work would involve learning a specific skill and mastering it, this could be a set back to the workers who like to be a part of the production from start to finish. Establishing the cell could also hamper customization and B&B may have to eventually move towards standard staircase designs with less customization. Furthermore, they would have to increase the production in order to fully utilize the cell. However, on the contrary, the cell would be a dedicated area where the functions would take place. It would be more organization and hence, save space while providing the employees with a better and cleaner environment to work in which is less congested. the cell would reduce the exertion of the workers, who currently have to walk a lot to get to one place to another and carry items of the way. Establishing the cell would get the job done faster and more efficiently. There would be greater throughput with the help of a step by step process and orders could be completed more rapidly. (Steavenson, 2008) At what stage, and how should dean sell his idea to the joinery manager and the workers? The idea of implementing JIT techniques to the joinery department is something that could make the department more competitive and help solve the problem that it is currently facing. Once Dean has established and analyzed the costs and benefits associated with the implementation of the idea, it would be the right time to communicate it with the joinery manager to get more insight to the situation and how it could be improved. Dean could show the joinery manager the loss that the department is incurring due to a disorganized process and how JIT could eliminate this wastage and help minimize costs whilst increasing efficiency and quality. With the establishment of a separate staircase cell there would be less clutter and congestion in the work area. Workers having skills over most of the work processes can be moved around and to do different jobs and the overall productivity would increase as workers would be faster and with a properly formulated work process, the production would be quicker, thereby eliminating the problems regarding the failure to meet estimation and deliver times. These factors, if properly communicated with the joinery manager, would sell the idea as there is no denial to the advantages of implementing the JIT techniques to this business area. The workers may have to be convinced through highlighting the benefits to them and their work practices. They would not have to move around as much and would be allowed to rotate their jobs from time to time to enrich their work experience. What risks are associated with deans proposal? With the new system in place the production capacity would be increased so there would be more production expected than before. The joinery department of B&B was known to make products based on the exact requirements and design of the customer. Through the introduction of JIT techniques, the customization may be affected to some extent and could influence the sales of the company. Moreover, Setting up an entirely new system requires the implementation of change management through that department. Mostly, workers are reluctant to change and need to be guided and trained in order for them to accept the new process and cooperate with it. BIBLIOGRAPHY Betley, A. Mayle, D. & Tantoush, T. (2005) Operations Management a Strategic Approach. SAGE Publications Floyd, D. (2004) Business Studies. Letts and Lonsdale Monk, E.F. & Wagner, B.J. (2007) Enterprise Resource Planning. Cengage Learning. Steavenson, W.J. (2008) Operations Management. McGraw-Hill Irwin. Read More