...In manufacturing, facility layout consists of configuring the plant site with lines, buildings, major facilities, work areas, aisles, and other pertinent features such as department boundaries. While facility layout for services may be similar to that for manufacturing, it also may be somewhat differents is the case with offices, retailers, and warehouses. Because of its relative permanence, facility layout probably is one of the most crucial elements affecting efficiency. An efficient layout can reduce unnecessary material handling, help to keep costs low, and maintain product flow through the facility. Firms in the upper left-hand corner of the product-process matrix have a process structure known as a jumbled flow or a disconnected or intermittent line flow. Upper-left firms generally have a process layout. Firms in the lower right-hand corner of the product-process matrix can have a line or continuous flow. Firms in the lower-right part of the matrix generally have a product layout. Other types of layouts include fixed-position, combination, cellular, and certain types of service layouts. PROCESS LAYOUT Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together. As such, they occasionally are referred to as functional layouts. Their...
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...Production Options at Prime Safety Ltd. Case Study Analysis About Prime Safety Ltd.: PSL is a manufacturer of corporate and industrial clothing in Karachi, Pakistan. The characteristics of operations of the company are – • Wide variety of clothes • A majority of customers have order size below 500 • The manufacturing process involves similar operations but varying work content Issue in the Case: To improve flexibility and operational efficiency, PSL has plans to implement modular manufacturing in sewing department. The issue in the case is to analyze the impact of this shift on the operational efficiency, employee coordination and customer service of the organization and recommend a suitable course of action. Cloth manufacturing process: The structure of the manufacturing process is - Parts -> Pre-assembly -> Final Assembly Process flow diagram: Existing process in sewing department: Assembly line or Chain Flow The main characteristics of this process are - • Bundled routing of material • Each operator performs same operation on all parts. This leads to worker specialization in a particular task assigned to him. • Modified bundle system is used for short order quantities Problems with existing process: Switching time for a different style is very high, about 6 to 8 hrs. This leads to underutilization of the existing machinery as well as other problems like lack of flow and rhythm in the work done by the operators. Why did...
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...as mass production. 1) _____________ 2) A(n) ________ is an activity at which a firm excels as a world-class leader. 2) _____________ 3) The ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market. 3) _____________ 4) ________ refers to the existence of laws that permit individuals to recover damages done to them by other actors, systems, or organizations. 4) _____________ 5) The ________ model prohibits an organization from collecting any personal information unless the individual specifically takes action to approve information collection and use. 5) _____________ 6) ________ can boost server utilization rates to 70 percent or higher. 6) _____________ 7) A(n) ________ activity is a part of the organization's infrastructure, human resources, technology, and procurement that makes the delivery of the firm's products or services possible. 7) _____________ 8) ________ is permission given with knowledge of all the facts needed to make a rational decision. 8) _____________ 9) ________ computing is an industry-wide effort to develop systems that can configure, optimize, tune, heal, and protect themselves from outside intruders and self-destruction. 9) _____________ 10) A(n) ________ company uses networks to link people, assets, and ideas, enabling it to work with other companies to create products and services without...
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...BenihanaOperations Management Education Review 1: 5-28. © 2005 NeilsonJournals Publishing. Benihana: A New Look at an Old Classic Ricardo Ernst and Glen M. Schmidt Georgetown University Abstract. This short case heavily references the “old classic” HBS case on Benihana, and is intended to be used in conjunction with a simulation that helps students gain insight into how Benihana achieved its profitability. The simulation helps bring out many key operational issues, such as how variability in demand and in processing can negatively impact profitability. The case analysis goes on to show how Benihana reduces variability, and illustrates concepts such as the product-process spectrum, the impact of a bottleneck, and the advantage of simultaneous product and process engineering. Keywords: process analysis, simulation, variability, queueing. 1. Introductory Note Benihana might be thought of as an “old classic” in Operations Management. The original Harvard Business School (HBS) version was published in 1972, but the Harvard case continues to be a best seller. This short case heavily references the HBS case, number 9-673-057 (rev. Dec. 14, 1998), however what has been added to enhance the case experience is a simulation that can be used to gain insight into how the operation achieves its profitability, as compared to other restaurants. There is a set of web sites associated with this case note, intended for both students and instructors, at http://www.msb.edu/faculty/schmidtg/...
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...Memory advantages: simple to understand Little paper work Maximum utilization of space Disadvantages: Dependent on particular individual Lost items may be lost to the whole system Accuracy may decrease if conditions are not ideal. Memory Systems will work best when: Storage locations are limited in size and number One or very few individuals work in the storage area Workers have no other duties beside the storage area There is not a lot of stock movement Inventory does not radically change within a short period of time fixed location systems; Every item has a home and nothing else can live there (pure system) Require large space because of -honeycombing (unutilized storage space) -planning around the largest quantities that may be at the facilities at one time Honeycombing causes Product Shape Products not stacked well Location system rules Poor housekeeping Vertical or horizontal honeycombing Pros-Fixed Location Systems: Immediate knowledge of where items are located Training time of new hires is reduced Simplifies receiving and stock replenishment Allows for strong control of individual lots( make it easier to use fifo or lifo)Allows sku’s to be placed sequentially Allows products to be placed close to point-of-use. Allows better planning for sku size, weight, physical nature etc. Cons-fixed location system Contribute to honeycombing Require maximum space based on total cubic volume of all products Inflexible especially in sequentially arranged storage situations ...
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...finished goods is risky. There are lots of countermeasure strategies that can be done in Tri Star Feeds; one of them is to increase productivity of the plant in order to meet peak demand. However, increasing the productivity level would incur a large amount of investment for the company, wherein most cases, companies tend to avoid incurring a huge investment cost if there are still other methods which are more cost efficient. Also investing in an additional plant might not be the best option since the Plant Capacity Utilization is only peak during the third and fourth of the month. During the first and second half of the month, Plant Capacity utilization can’t even reach half of its potential capacity. Another countermeasure that they can do is to build up a finished goods inventory in the first half of the month in preparation for the large demand in the second half of the month. But according to the Director of Logistics Management, it will require a large storage space. Which would require for the company to rent a warehouse that is 10 km away since it is the only available near the plant. As such, they will end up incurring a lot of transportation and additional handling costs on top of the rental expense. The company will also have to tie up...
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...Leverage Your Assets In a volatile market(不穩定市場) where product life cycles are short, it's better to own fewer assets-thus goes the conventional wisdom(傳統觀點) shared by many senior managers, stock analysts, and management gurus(領袖、專家). Zara subverts(顛覆) this logic. It produces roughly half of its products in its own factories. It buys 40% of its fabric from another Inditex firm, Comditel (accounting for almost 90% of Comditel's total sales), and it purchases its dyestuff(染料) from yet another Inditex company. So much vertical integration(垂直整合) is clearly out of fashion in the industry; rivals(競爭者) like Gap and H&M, for example, own no production facilities. But Zara's managers reason that investment in capital assets can actually increase the organization's overall flexibility. Owning production assets gives Zara a level of control over schedules and capacities that, its senior managers argue, would be impossible to achieve if the company were entirely dependent on outside suppliers, especially ones located on the other side of the world. The simpler products, like sweaters in classic colors, are outsourced to suppliers in Europe, North Africa, and Asia. But Zara reserves the manufacture of the more complicated products, like women's suits in new seasonal colors, for its own factories (i8 of which are in La Corufia, two in Barcelona, and one in Lithuania, with a few joint ventures(合資企業) in other countries). When Zara produces a garment(服裝) in-house(內部), it uses local subcontractors(承包商)...
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...1. Fitness Plus, Part A case (from chapter 6 on capacity planning; pages 223-224) 1. Utilization would be the method I would use to measure the where you would need to add extra capacity or eliminate extra space. In this case we would see that cardio is reaching maximum capacity. Fitness plus has not reached its capacity but it is time to start doing something about space. Capacity could soon be met since the area is growing so fast. January is also going to get busy so it is time to act. 2. The capacity strategy that would be best for Fitness Plus would be sizing capacity cushion which would help to find out if you are reaching a 100% utilization rate. You would then be able to gauge whether you need to increase capacity before it becomes a production issue. It would be ideal to stay around a 40% cushion so that you can keep customers satisfied and to avoid any problems. 3. The operating decisions are directly related to the financial aspects of the business. By increasing membership and utilization you increase profits which is what any business should want. Making changes to the business to meet increasing demand will affect other types of operating decisions in the business. You would have to change marketing and customer service. 2. Experiential Learning: Min-Yo Garment Company (from chapter 7 on constraint management; pages 269-272; question 1 only) Production is not within capacity it is way over. 3. Video Case: Lean Systems at Autoliv (from chapter 8 on...
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...www.hbr.org T OOL K IT Time-Driven Activity- Based Costing by Robert S. Kaplan and Steven R. Anderson • Many companie s abandoned activity-based costing because it did not capt ure the compl exity of their operations, took too long to implem ent, and was too expensive to build and maintai n. Here’s a way ar ou nd th ose problems. R eprint R0411J T OOL K IT Time-Driven Activity- Based Costing by Robert S. Kaplan and Steven R. Anderson harvard business review • november 2004 pa ge 1 C OPYRIGHT © 2004 HAR V A R D BUSINESS SCHO OL PUBLISHING C ORP OR A TION. ALL RIGHTS RESER VED. Many comp anies abandoned acti vit y-based costing because it did not capture th e complexity of their operations, took too long to implement, and wa s too expensive to build and maintain. Here’s a way around th ose problems. In the classroom, activity-based costing looks like a great way to manage a company’s lim- ited resources. But many managers who have tried to implement ABC in their organizations on any significant scale have abandoned the at tempt in the face of rising costs and em- ployee irritation. They should try again, be- c ause the new approach we lay out in the fol- lowing pages sidesteps the difficulties traditionally associated with large-scale ABC implementation by relying on informed man- agerial estimates rather than on employee sur- ve ys. It also provides managers with a far more flexible...
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...needs specific information to estimate how well the existing capacity of the building is being utilized by members and to decide the capacity utilization rate of the club to reveal if they are utilizing their space efficiently. Fitness Plus knows their most popular activities are in the following areas: 1) Aerobics room accommodates 35 people per class; 30% of members use. 2) Free weight room; 20% of members use. 3) 24-piece Nautilus equipment room; 25% of members use. 4) Cardiovascular room containing 29 pieces of equipment (9 stair-steppers, 6 treadmills, 6 life-cycle bikes, 3 air-dyne bikes, 2 cross-aerobic machines, 2 rowing machines, and one climber); 40% of members use. Also there is space for 8 racquetball courts, which 15% of members use, and 6 tennis courts, which 10% of members use. Analyzing growth In five year’s time, growth went up 2 times during peak hours, and 1-½ times during slow hours. Growth has gone up 1-2/3 times overall. Fitness Plus Capacity 3 1992 660 hours open during week Slow time – average 6-8 people/hour Peak – average 40 people/hour 9,990 people working out/week (15 people per hour average/open hours) 1997 660 hours open during week Slow time – average 10 people/hour Peak – average 80 people/hour 16,500 people working out/week (25 people per hour average/open hours) Measuring Existing Utilization The areas where most bottlenecks occur during peak hours are...
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...The Business Context The call centre of the Eastern Medical Faculty Foundation, hereafter referred to as EMFF, provides a competitive advantage to the Internal Medicine Department of the Chicago School of Medicine through the delivery of efficient and high quality service to patients. Treating patients generates revenue the Internal Medicine Department and contributes to investments in research in the highly competitive healthcare sector. Unfortunately, declining customer satisfaction, as evidenced in a growing number of customer complaints, suggests the quality of service is deteriorating and threatens the very competitive advantage of the EMFF. Problem Description Laura Jones, supervisor of the call centre, seeks to remedy operational deficiencies. Laura suspects the call centre suffers from insufficient capacity and/or scheduling problems. The call centre faces high employee turnover, which is consistent with the industry norm. As a result most customer care representatives (CCRs) have limited experience. Only two CCRs have over two years experience while the remaining seven have worked at the centre for less than one year. While new CCRs are given standard training they lack incentives linked to key performance indicators. Compounding the problem is the increasing number of duties assigned to CCRs, including; scheduling patients, translating, handling queries, providing advice on first aid, and to performing administrative duties. Time spent on translation and...
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...Chihab EL ALAOUI Student ID: 118989 Title: Case of the Manzana Insurance Fruitvale Branch 1. Describe and evaluate Manzana's operations strategy Manzana has an operations strategy focusing on autonomy among branch offices that shows in the case operational inefficiencies, and it considers each branch as a separate profit and loss center with the space to underwrite insurance, collect premiums and settle claims within territory. Manzana has generally 3 territories of operations, where the company does not deal directly with public, instead of that it operates through 200 independent agents whom are working with other companies, but in case of Manzana the agents are dealing with 4 departments that cooperate with them from within to process the policies whom in order based on the policy process: Distribution, Underwriting, Rating and Policy Writing. The major areas of concern includes: high Turnaround time (TAT), the turnaround time is the total time taken to process a request. At present Manzana’s TAT is around six days compared to one day TAT of its major competitor Golden Gate Insurance firm. The inappropriate work force distribution at Manzana makes some workers to be idle and others being stretched to work, making the system inefficient. There is significant proportion of policies which are being renewed late, this is primarily because the policies...
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...Running Head: KRISTEN’S COOKIE COMPANY 1 Kristen’s Cookie Company: An Effective Production Process ABSTRACT This paper will explore the Kristen’s Cookies business concept and evaluate if the company current status is profitability. We will review the ability to take orders, pricing the product, developing policies. Kristen’s Cookie Company is a business idea thought up by two roommates who are trying to tap into a market which caters to starving college students in the late night hours. The proposed idea is to offer freshly baked made-to-order cookies late at night for students within an hour. Although, the concept is good, the purpose of this analysis is to determine the components that can make or break this company’s success. The ultimate goal of the company is to comprise a price that is affordable, yet profitable to the two owners. The key points that need to be evaluated would be the production process along with fees for the services, will they be able to profit based of the cost put into the business, ordering capacity based off the equipment currently owned and times of operations, the amount materials that should be in the inventory, and man-power. The students already own key equipment like the mixers, cookie pans that hold a dozen cookies, and the oven, so no investment is needed in this area. Expenses like electricity are covered by the landlord, so this is another item not necessary for the operational budget to start. The input to consider...
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...Subject: B.C. PACKERS CASE MEMO Date: May 5, 2011 Case Background Canadian cat food market showed arising opportunity in 1987. B.C. Packer, the famous market leader in both canned salmon and tuna provider was considering the possibility of entering the Canadian cat food market, in order to get more profit from its by-product instead of just cover its cost by selling commodity bulk of fish meal. Therefore, a study with detail analysis based on all the information collected, is necessary for indicating a direction for the management of the company. Market Overview Cat population in Canada in creased 4.6% during the period of 1983 to 1987. More and more people would like to feed a cat rather than a dog since cats require less space and care than most dogs. 1 o m w w w w PD F -X C h a n ge PD F -X C h a n ge ! W N O y bu to k C lic m C lic k to bu y N O .c W w ! .d o w o .d o c u -tr a c k c u -tr a c k .c The changing consuming behavior of the cats owners lead Canadian cat food market to more clearly segmentation by classifying different brands in the past 2 years. See EXHIBIT 1 for the market allocation in 1989. The gourmet class was just developed since 1987. The major customers, female age 35 and over, affluent, upper income, believe higher price means higher quality. This group was growing very fast in these two years, which resulted in booming of gourmet...
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...production time requirements makes a single figure for capacity much less meaningful. Input measures are the usual choice for facilities that produce custom products in low volumes using processes with flexible flow patterns. For example, in a photocopy shop, capacity can be measured in machine hours or number of machines. Demand, which invariably is expressed as output rate, must be converted to an input measure. Only after making the conversion can a manager compare demand requirements and capacity on an equivalent basis. For example, the manager of a copy center must convert its annual demand for copies from different clients to the number of machines required. Utilization. Capacity planning requires knowledge of current capacity and utilization. Utilization, or the degree to which equipment, space, or labor is...
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