Week Six Final
Erica Garofalo
Ashford University
BUS 644
Professor Gail
September 29, 2014
Space Age Furniture Company makes tables and cabinets used to house microwave ovens and portable televisions. Operations Officer, Coral Snodgrass, is currently dealing with a problem in the companies manufacturing. Operations managers are responsible for generating value in the forms of goods and services. Their goal is to simultaneously balance supply and demand both financially and through marketing. Operations managers are imperative to run a business efficiently; they signify the difference between value-added input and output (PPP). Coral just got word from the foreman that his most reliable worker, Ed is unhappy due to a manufacturing
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Our book defines JIT as, “… a philosophy of operation that seeks to maximize efficiency and eliminate waste in any form”( Vonderembse 2013, Chapt 11.1). Perhaps one of the greatest functions of JIT is that it uncovers the problems in production by keeping minimal items available. With no pools of inventory the goal of JIT it to allow a smooth flow of production without any kinks or waste. Since using the JIT system Space Age has uncovered a problem with its key worker ED putting in to many hours due to a glitch in the production of part 3079.
In addition to the manufacturing problem Space Age is facing they are also in a dilemma regarding the reduction of overtime costs and inventory costs. If the over time costs tend to lessen the inventory costs, overtime costs would be higher and the employee would be unhappy. If inventory costs reduce overtime costs then inventory costs would be higher than previous. Managers of Space Age are in need of suggestions for tracking the job status and location during production. The optimum mode of production needs to be identified and, some changes are required for creating value for the company along with the customer. The master production schedule was given from Coral.
Master Production Schedule:
Master Schedule
Week
1 2 3 4 5 6
Gemini 600 400 700 500 400 600
Saturn 300 400 400 600 300 300
Part 3079 is the production
The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached
Space Age Furniture Company has manufactured tables and cabinets in order to hold a microwave oven and portable televisions. Space Age products are made in several sizes and with several features yet, they all follow the same production and assembly operations. There is quite a difference in a few products that Space Age offers. For example, the Saturn microwave stand and Gemini TV stand has a part (no. 3079) that specifically requires machining on a special lathe used only for making these parts.
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
Bob’s Discount Furniture can be defined in one word, “innovative”. In almost every aspect of their business, Bob’s is setting the standard for the furniture industry. Founded in 1991 in Newington, Connecticut, Bob Kaufman had a dream to build a successful company. This dream stemmed from his own experiences. In 1976, Bob was involved in a motorcycle accident that left one of his legs partially paralyzed. He was sent to bed to recuperate from his injuries, where he then found the benefits of the waterbed in his recovery. This experience inspired Bob to become a waterbed salesman. He sold waterbeds in 24 stores across New England.
“For companies today, MRP is a computerized information system. As such, it requires data to provide the information needed for decision making” (Vonderembse & White, 2013, Section 9.5, para 6). The goal of this paper is to read the Space Age Furniture Company case study and develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000 considering the lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079; suggest ways for improvements over sub-assemblies in lot sizes of 1,000, analyze the trade-off between overtime costs and inventory costs, calculate a new MRP that improves the base MRP, compare and contrast the types of production processing—job shop, batch, repetitive, or continuous—and determine which the primary mode of operation is and why, describe ways that management can keep track of job status and location during production and recommend any changes that might be beneficial to the company and/or add value for the customer.
Recommendation:1. Improve Just-in-time systemSpartan Plastic Limited need to improve Just-in-time system, it is control aims to maintain inventory level at zero, with an immediate objective of reducing the capital tied to the inventories. It is an important principle that able to eliminating waste throughout the production system. The waste can occur, through excess inventories and overly large lot sizes, both of which can cause unnecessarily long customer lead times. Let's explain the role of the core JIT practices in enhancing manufacturing performance. JIT manufacturing requires the establishment of JIT supplier relationships with suppliers; Spartan in this case, that is able and willing to deliver the needed quantities of parts as the needs arise and without any defects.
The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions. In this paper, I will explore ways that the company can be more efficient in the time to manufacture these parts and the overtime hours involved. To accomplish this, I will look at the type of operation, trade-off between the costs of overtime and inventory, ways that management can track job status and offer any suggestions regarding these issues.
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
Space Age Furniture Company uses a process layout that helps manage its operation efficiently. Besides that, there is the use of barcodes which help tell the various steps in which each work is. After a given process is finished, the worker removes the sticker of the bar code and takes it to the office where the details are transferred to the computer through scanning thus keeping track of all the job units in the company that directs to a finished product. These tracking reports are used in the management of inventories and accounting records. Hence, this improves the working of the enterprise. The management can also be able to foretell when a given process can be finished and be delivered to their customers. This helps reduce the costs
The corporation discussed in this paper is in the aerospace industry. We are a fortune 200 business. The company makes windows for airplanes. At the present time we are number one in the industry, but there is competition. The company has been in operation for 45 years. Currently we supply OEM and the aftermarket with windshields. In this paper when I refer to the product that we manufacture, I will use windshield and transparency interchangeably. We employee about 500 production employees. We operate using 3 eight hour shifts, with the majority of the production done on first shift. As of today we operate at about twenty percent overtime, due to the firm orders that we have plus our backlog. We have hundreds of item numbers that we manufacture,
A third disadvantage of applying JIC manufacturing operations is having lower quality assurance methods and even further, lower customer satisfaction (“Just-in-case and just-in-time…”). While the just-in-case system is beneficial in
The first Canadian furniture company was established in Berlin (Kitchner), Ontario in 1830 and the next in Toronto in 1834. The industry developed considerably in the latter half of 19thcentury, mainly in Ontario. There were a few factories in Quebec before 1900 but the industry primarily developed after WWII.
Herman Miller’s journey started in 1905 as the Star Furniture Company in Zeeland, Michigan. As recognition to Hermann Miller, who purchased the majority of shares of the company in 1923, De Pree, the president back then, renamed the company Herman Miller Furniture Company. In 1930 Herman Miller faces failure due to the Great Depression. At the same time De Pree meets Gilbert Rohde, a designer from New York, who convinces De Pree to move away from traditional furniture and to focus on products better suited to the changing needs and life styles of Americans. After his death, De Pree hires George Nelson in 1945 as the company's first design director. Nelson introduced a new corporate image for Herman Miller amongst other things. In 1950 Herman Miller becomes the first company in Michigan to adopt the Scanlon Plan, a program of participative management and gain sharing.
One nurse. One schoolteacher. One bookkeeper. Three people with some managerial experience in nonmanufacturing settings. Mr.Woody (with help) your must now decide how to design his new organization. This design will include the management structure, pay system, and the allocation of work to individuals and groups. The bar stool making process has 15 steps: 1. Wood is selected. 2. Wood is cut to size. 3. Defects are removed. 4. Wood is planed to exact specifications. 5. Joints are cut. 6. Tops are glued and assembled. 7. Legs/bases are prepared. 8. Legs/bases are attached to tops. 9. Bar stools are sanded. 10. Stain is applied. 11. Varnish is applied. 12. Bar stools are sanded. 13. Varnish is reapplied. 14. Bar stools are packaged. 15. Bar stools are delivered to the customer. Mr.Woody currently manufactures three kinds of bar stools (pedestal, four-legged corner, and four-legged recessed). There is no difference in the difficulty of making the three types of bar stools. Major cost variations have been associated with defective wood, imprecise cuts, and late deliveries to customers. Mr. Woody must decide how to organize his company to maintain high quality and profits. He has thought about several options. He could have some individuals perform the first step for all types of bar stools; he could have an individual perform several steps for one type of bar stool; or he could have a team perform some combination of steps
According to [5], Just-in-Time (JIT) inventory management enables an organization to gain competitive advantage by not having a large or excessive amount of inventory in warehouse. The organization only needs to order the parts when they are actually needed and new materials are produced only when old materials have finished. One advantage of adopting this strategy is that there will be no excess of inventory that needs to be stored and hence the inventory levels will be reduced as well as the cost of carrying and storing goods. One major disadvantage of this is that the organization will expose it in the risk of ordering problems for example a supplier is not able to provide parts on time. The result of this is that the organization cannot fulfill the order and contributes to customer dissatisfaction.