This class four Module and they are related.

Discussion

Actions for 'Reflective Discussion'

As our study draws to a close, it is important to step back and reflect on new levels of understanding, skills, and knowledge that you developed as a result of your efforts throughout this course.

Toward this end, please address each of the following items:

1. Describe how you improved your knowledge, skills, abilities, and yourself in this session through this course.

2. Evaluate your OPM500 class work during the session and explain ways you could have performed better.

3. Identify topics you did not understand or successfully implement and, if possible, suggest how to improve the course material on those topics.

4. Discuss ways you might measure the future effects of what you have learned in this course for your future progress/improvement.

5. State whether you achieved the course outcomes (listed in the "Learning Outcomes" section of the syllabus).

Case

Solving a Complex Problem Based Upon Capacity Planning and Forecasting

Scenario

Company E-Mail

FROM: Gerald Garcia

SUBJECT: Major Issue pertaining to customer orders backlog

As we discussed the other day with Philip Lesh, 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. William Graham 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 Philip Lesh 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 Robert Weir and someone in the Plastic Injection Molding area about the tools. And while you are talking with Robert, ask him about his opinion of capacity. Ask Philip Lesh 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 Philip Lesh 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.

Case 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 backlog 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 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.

• Analyze the capacities including the rates of production, the amount of physical space and needs for equipment and people. At what level of capacity are these processes operating? What are some of the possible bottlenecks?
• What impact does the forecast have on future capacity needs? What are the implications if the forecast is inaccurate (too high or too low?)

• What are some possible ways of increasing capacity and what are the implications for the short term and long term such as costs and investment in capital?

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

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.

Solving a Complex Problem Based Upon Capacity Planning and Forecasting

Session Long Project

Using your fictitious company from previous SLP assignments, develop the company profile and operating information.

Your company is faced with an increase in demand.

Identify how your company uses forecasting for purposes of capacity planning and how you can utilize productivity, inventory control, and quality improvements to meet this new demand.

Identify different kinds of capacity and capacity constraints. How is forecasting used to generate short-term and long-term information about demand that affects capacity? What are some options that the company has in terms of increasing its capacity?

NOTE: in retail businesses with physical locations where customers are served, capacity can be measured in terms of size of the facility and throughout of customers. What is your current Max Possible throughput - how many customers can you serve with your current capacity?

Often there is a trade-off in size of the facility for backroom inventory or kitchen, displaying inventory to customers or seating, and customer space such as aisles and checkouts or bar space and waiting areas. You should consider all of these in your capacity analysis.

This paper should be approximately 3-5 pages in length counting the introduction, body, and summary. You should include references and cite them properly in the paper. Generally, at least three references should be used.

SLP Assignment Expectations

• First discuss the recap your company and add any additional information about it that will add necessary and/or interesting information as background to the discussion of capacity and forecasting.

• Identify at least two types of capacity and the constraints that act on them now and in the future.

• Discuss the types of forecasting methods that your company uses. How do they generate short-term and long-term demand forecasts?

• Besides using the forecasts for capacity planning, are there other uses of these forecasts?

• Determine and discuss some options that the company has in terms of relaxing or eliminating constraints and increasing capacity in the two areas you have identified. Which of these options would you recommend and why?

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

You should look for additional references about the type of business you are operating with specific information about improving capacity and using forecasting.