In the previous task, you developed some tentative ideas about what you expected to find when you arrived in Oregon. Here is some more information you have obtained from management:
Facilities P and T both claim that parts from the S facility sometimes do not arrive on time, causing costly production shut-downs which periodically lead to missed contractual ship dates.
The S facility has records that those same parts were loaded onto trailers and that the semi-trailers left on time.
Facility S habitually runs out of the "accessory" parts which are shipped from the T and P facilities.
There have been recent instances where over seven shifts of production from a single molding machine have been defective due to a malfunctioning mold.
Similar quality problems have occurred when the wrong plastic resins have been used for some molded parts.
Work-in-process (WIP) within the stamping department is sometimes misplaced or lost, disrupting downstream manufacturing processes and leading to missed shipments to the T and P facilities.
Upon arriving on site and interviewing the production and inventory planning staffs at all three facilities, you hear the following:
Facility S claims that there have been instances where they have been over one day ahead of their shipping schedule for specific parts, and that the T and P facilities were still claiming they were out of that part. Then, the "missing" parts were located in a still loaded semi-trailer in the yard adjacent to the P and T facilities.
The production and inventory planning staff at the T and P facilities claim to be shipping the "accessory" parts to the S facility on a JIT (Just in Time) basis and that their shipments should be adequate to support the S facility's requirements on a level production plan.
The small quality control group at the S facility point out that they do not have the equipment or training to perform quality checks to the same level that facilities P and T are able to perform.
Due to recent economic conditions, only a single supervisor is available in the stamping department and in the molding department during midnight shifts and on weekends.
summarize findings and recommendations on the topics of:
Materials and inventory
Supervision at the plants
General production flow
S facility claims that it has shipped parts to P and T however, P and T claim that they have not received the parts. This is a case of communications breakdown and leads to a situation where the parts were found loaded in the semi-trailers at P and T. Similarly, S runs out of accessory parts shipped from T and P is a case of weak communications of timing. Shipping of accessory parts to S by P and T on JIT basis requires close coordination and communication, this is missing and so there are shortages and production shutdowns.
It is recommended that there should be closer communication between P and T, and S. The moment parts are loaded on a trailer, the complete information should be communicated to the other plants and if possible the truck should be tracked. If JIT is to be implemented, the production plan of S should be communicated to P and T. The production plan may not be "level", this fact needs to be communicated.
Materials and inventory
There is material shortage because P and T do not ...
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