Work

Space Age Furniture Company

The above-mentioned company, Space Age Furniture Company, produces cabinets and tables that are well equipped to be able to hold movable electronics. The electronics can consist of either a microwave or a television set. Even though they are produced in similar different sizes, the mode of their production is often similar across all the products. Two of the main products manufactured; ‘the Saturn microwave stand and the Gemini TV stand’ often requires a special production. However, the demand for the two products has forced the employee who oversees how the machines operates, to work extra time. It is an effort considered to beat the set deadlines for these two products to be produced.

In an attempt to produce the two products minus pushing any employee to the wall, the company has adopted MRP (Materials Requirements Planning) system to resolve the dilemma. MRP is the kind of system whereby a particular manufacturing company enforces the system that in the long run, efficiently helps the firm in the organizing of its operations effectively. MRP does not necessarily outlay the scheme to be used. Instead, it uses the data provided by the company, and then reflects a more in depth way to execute the outlined scheme. Illustrated below is both the master production scheme and the developed MRP.

Master Schedule

MRP Scheme

Basing on the target units to be produced per week to be 1000 units, we will consider the format below. Let us consider a situation in which there was no unit produced throughout the week. The below will be the rest. We have only considered the Gemini

Week 1 2 3 4 5 6

Demand 1000 1000 1000 1000 1000 1000

On-hand at end of week 600 400 700 500 400 600

Order 400 600 300 500 600 400

From the above table, we can depict that almost throughout the week there will be a shortage on the number of units to be produced. This can eventually lead to a stock out of the units. The number of needed units to counter with the demand is about 2800 units. In this regard, the firm needs to manufacture additional 2800 units. Averagely, about 500 additional units every week. This is an opportunity for the firm to hit its set target. Any extra inventory should be carried forward as it will be used in the next week.

From the above illustrations, we can depict that the firm stands at a higher chance to plan its scheme appropriately. The above table shows the expected units, the quantity at hand and the units to remaining for a complete order. The firm can therefore plan adequately on how to handle the excess units and even the inefficient units.

How to improve production of sub-assemblies

In an attempt to increase the production of the sub-assemblies in lot of sizes of about 1,000 in number, there are certain measures that the company should enforce to achieve this. First, the firm needs to embark on the empowering of the employees as they are directly involved in the production of the merchandise. Empowering can be done in various ways for example, rewarding of the employees by the use of the various benchmarking methods. Research has indicated that in the event that the workers have been empowered both financially and ideologically, they stand a greater chance of being committed to the tasks assigned to them. In the long run, they will constantly come up with various methods and ideas that when injected into the company, tremendous improvements will be seen. It include excessive turnover of the company and the beating of any set order of merchandise.

Secondly, a firm can embark on the offering of training programs to the employees. Research indicates that low production can arise due to inefficient competence of the employees. In such like cases, a firm should outline specific period of times and venues where every employee can get an opportunity to learn on ways of how to improve on their skills. When this is done, a firm stands a greater chance to eradicate any form of unnecessary costs. The results will be that, the speed in the production sector will constantly increase as every employee will be adequately equipped with skills that speeds up the production process.

The above-mentioned firm can also increase its output if the directors do away with insignificant operations. Research indicates that there exists certain forms of operations that do not add a single value to the production process. Instead, these processes sonly retards the production processes. These operations include particular employees who undertakes tasks that has already been done or tasks that intersects. The result is that when time taken by these tasks often increases the overall time of production. The firm should adequately scrap out search like activities in order to efficiently use the limited time, while also increasing the output.

The above firm can also outline its set prospects. When a firm has got objectives and they are also clearly outlined, it will tremendously assist the workers to always stay engrossed in their undertaking. Literally, the workers will be undertaking the tasks assigned to them, while at the same time considering that there is an initial goal to be achieved. When the unnecessary operations is removed, there will certainly arise additional time. The firm can thereby use this to their advantage and then maximize the output assigned to every worker.

Lastly, for the above-mentioned firm to increase the outlined number of products, it is essential for it to enforce steady changes to the firm. Certain policies need to be effected within a measurable amount of time. For example, the firm can start by bringing changes to a particular sector of production first, rather than effecting the change at the same time. In the long run, the employees will be adapted to the whole process and they will develop a positive attitude to the tasks assigned to them. These changes with time, will bring an increase number of sub-assemblies produced, in lot sizes of 1,000.

Analysis of the trade-off between overtime costs and inventory costs

Inventory analysis for a very long period of time, has greatly assisted in the decomposition of normal inventory level for most of the processes in the purchases and supplies chain management. From the above-mentioned company, it has been illustrated that for every time overworked, there will be a provision of premium that accrue to about fifty percent pay of the overall costs. While at the same time, it has been provided by the operator, Ed Szewczak, that for every stock that is stored to the following week, it will averagely cost about 0.25 US dollars every week. At the same time, the cost of holding a stock for a particular week will cost about 0.75 US dollars per week.

From the above context, we can conclude that in the event that one thousand units are produced every week, the total cost of holding them is clearly illustrated below.

One unit = $0.75

Therefore how much will it cost to hold 1000 units?

= $0.75 X 1000 units

=$750.

On the other hand, it costs about 0.25$ every week to hold a single unit from one week to the following week. Just like the above-mentioned assumption, let us take 1000 units.

One unit = $0.25

Therefore how much will it cost 1000 units?

= $0.25 X 1000 units

= $250.

From the above illustration, we can depict that the firm uses additional $250 to hold stock to another week. If appropriate measures is effected, the above cost can be taken to the holding of stock for a week before their delivery. If MRP plan is effected, the unnecessary costs, $250, can be used effectively. Let us assume that the products are delivered on time and no stock is held to the following week.

- Holding one unit within a week costs about 0.75 US dollars.

- Therefore, how many additional units can be held from the unnecessary $250?

1 unit = $0.75.

??? = $250.

= $250 X 1 single unit

$0.75

= 333.333’

This means that in the event in which unwanted operations is removed, the above-mentioned firm can produce about three hundred and thirty three additional units, on the assumption that it produces one thousand units every week. This depicts a greater output to the firm. In the long run, this will also lead to the effective maximization of the prices.

Types of Production Processes

Basically, there exists three types of production processes. They consist of, job production, batch production and flow production.

Job production – it involves the development of products one after the other, by the use of a systematic operating system or numerous operations carried out by assigned team members. In such like a method, numerous similar merchandize can be manufactured using similar numerous techniques or machines. Examples of products that fall under this category can consist of the installation of electric appliances in a house, or the production of clothes using numerous similar sewing machines. One thing that makes this type of method to be distinct from the rest is the fact that the units produced are often similar all throughout. It only takes adequate devotion by both the assigned employees and machines too.

In regard to the above-mentioned method, there exist numerous benefits of adopting it. First, the kind of tasks handles is uniform all throughout. This is an advantage to the employees as a uniform work will be done all throughout. Both the customer and the firm will meet and come into amicable agreement on what to expect from the ordered products. Still on this benefit, the customer can wait and observe the production of a sample unit. He/she is then expected to keenly inspect the sample, until they come to a satisfaction that in deed, it is the correct unit ordered. The rest of the work will therefore be left upon the hands of the manufacturer. The work to be done next simply involves the replication of the sample that has been previously produced.

Secondly, this kind of method is often easier when it comes to the close scrutiny of the employees and the machine too. Lastly, the employees too will gain a form of inspiration from the job assigned to them. This is because, they are only required to be instructed on how to make a sample, and then the rest just involves close observation.

Batch Production – this kind of production method involves the manufacturing of a particular commodity in phases. When the manufacturing company is done with making one phase that does not mean that the project is done. However, a different phase begins which is totally different from the first phase. In most cases, this kind of method is known as the ‘intermittent method’. However, one should remember always that one particular machine, is capable of interplaying different jobs, in different days.

In the event that this method is used, the firm stands a greater chance of certain benefits. First, the firm will stand a chance of saving unnecessary funds that ought to have been used in the purchase of extra machines. This kind of method is also known to be enabling a continuous flow in the production process. Taking for instance that the company has ten machines, every machine can stand in for a different job. If worked appropriately, a lot of products can be produced within a very short period of time. The overall costs associated by the use of this method are evidently much lower as compared to the use of varying machines for a similar job. Lastly, the continuous flow of production often leads to the purchasing of various commodities in bulk.

Flow Production – it is closely similar to batch production, only that the process continuous from one stage to another. There are assigned machines and employees, who deal in different production sector. In the event that a particular stage is complete, the unit is not kept to await the next level. Instead, it is passed to another stage whereby the production kicks off again.

When the above method is used, the benefits accrued include; the higher chances of enforcing the just in time policy. In this regard, no finished stock is kept in the store. Instead, the production process continuous on and on, until the product is delivered immediately it is complete. When the firm sets out a clear plan on how to carry out their activities, there exist higher chances of the labor costs to be abridged. Since the flow of the production process is uniform, the idea of having a larger store is not necessary. Lastly, firms that deploys this technique often takes a shorter period of time to get back the funds that was initially allocated to the buying of the raw materials.

From the above three illustrations, we can illustrate that the company uses the Job production technique. It is evidently shown when the company illustrates that the furniture to be produced is uniform throughout.

Ways to keep track of the job status and location during production

This can be achieved by the company adopting the modern systems of controlling the production process. First, the firm can subdivide the production process into segments. In the event that a particular section is completed, it should not be combined together with the other units that are not yet complete. Firms can also embark on the use of tagging system. In the event that a production process is through, use of tags against the unfinished, finished or the raw materials, can evidently assist the firm to keep track of the production process. The situation or location of the products can also be done through segmenting the production quarter. Different rooms and halls should be assigned to different phases of the production process.

Changes that Can Add Value to the Firm or the Customer

From the above illustrations, certain change needs to be adopted by the company. For example, abolition of the keeping of stock can give way to the production of additional unit. When this is done, the company will also utilize considerable space previously used in the storing unit, for other purposes. The firm also needs to employ additional technicians so as to improve the production of the units.