Module 5 - Case

Case: the Excellent Manufacturing Company & a Complex Operations Problem

Scenario

COMPANY EMAIL

FROM: George Washburn

SUBJECT: Major Issue pertaining to customer orders backlog

As we discussed the other day with Don Stump, the Director of Materials, we have begun to experience a growing backlog of customer orders in the Plasti-Brack product line.

For the last two to three months apparently we have had a slow creep-up of order backlog in the MLD250 department, specifically the Plasti-Brack molding group. It seems that we now have a 5 to 6 week backlog which is entirely unacceptable to our customers. As you know, our customers have been accustomed to getting orders shipped almost immediately or within a week of placing their orders. So now they don’t like to have to wait. Jack Walker and I think that this could possibly adversely affect our business since these items are so popular.

It is my opinion that we need more capacity in Machine Group 251. As you know, we have four 250-Ton plastic injection molding machines which run these six parts. However, lately one of the machines seems to be experiencing excessive downtime. There also seems to be some tool wear causing low productivity. I suggest you talk to Don Stump to get more details on the order backlog and his scheduling system. Talk to Tom Gunner in Engineering or one of his Manufacturing Engineers about the machines and tools. And you should also check with Bill Morton and someone in the Plastic Injection Molding area about the tools. And while you are talking with Bill, ask him about his opinion of capacity. Ask Don Stump his opinion as well.

What I expect you to do consists of three main activities: 1) check out our capacity problem. See what we need to do to increase capacity. There is a capital budget available for the MLD2500 group - see Harvey Lund for more details. 2) We have to get our delivery time down to acceptable levels - see Don Stump for the details. 3) And while you are at, see what you can do to improve productivity and lower our costs. I expect your report in about two weeks with your recommendations and justification.

Be sure to use the Report Template I provided in the first assignment.

Let me know if you have any questions as you proceed. Thanks. ~GW

Click Here to go to EMC

As a result of this assignment, you have investigated over several days and taken some notes. Click Here to see your notes.

Learning Wizard

Assignment

Analyze the situation in the Plasti-brack product line. Diagnose the problem and possible solutions to the capacity and order backlog. Determine an appropriate plan for correcting the problem. Justify your plan and make recommendations using your knowledge of productivity, process improvement, inventory, capacity, forecasting, and quality. Write a report to the VP of Operations. Use the Report Template provided.

Assignment Expectations

• Use the information provided in the Background readings from Module 1 through Module 4. It is not necessary to do any additional research.
• Review your notes from your investigation about the Excellent Manufacturing Company and the various opinions, policies and data surrounding this backlog issue for the Plasti-brack product line.
• Explore the possibilities of spending some of the capital budget on a machines and or tools. Also consider improving setup time, improving quality, increasing capacity, and determining EOQs.
• Determine a plan for solving this problem in the Plasti-brack product line. Consider there may be both a short-term solution and a long-term solution.
• Justify your plan based on the concepts of capacity management.

 

Read and review all of the references and resources on productivity, processes, inventory, capacity, and quality.

Study YOUR NOTES carefully to obtain all of the important information about this problem. Think through this situation carefully and determine how all of the various operations ideas interact with each other to make this a complex problem.

NOTE: If you use the references provided in the Background, then you do not need to include a Reference section. If you do decide to use additional references, then you need to cite them and include them in a References section.

The report should be 3 to 5 pages.