Spartan Heat Exchangers
Spartan Heat Exchangers1. Spartan Heat Exchanger currently manufactures specialized industrial heat exchangers. The new business strategies for Spartan are emphasized on reducing product variety and standardize the product line. There are various implications associated with this strategy; firstly, Spartan’s current product line is based on job shop manufacturing operation where individual parts are produced in several departments and finally assembled in assembly area.
Secondly, Spartan has multiple vendors for raw material supply and the materials department is using approximately 350 vendors. Thirdly, in the existing strategy, Spartan is using unique skilled workers. Finally, poor inventory management which reflects Spartan manufacturing operations are facing material shortage and stock outs.
In order to opt for new strategy, Spartan has to make many changes and this process will certainly require time and efforts. For example, Spartan has to shift the manufacturing from batch process to assembly process. This will eventually require process reengineering; the reengineering will modify the existing department structure of manufacturing process. On the other side, Spartan has to reduce the number of suppliers; selection of the suppliers would be tedious task. In the assembly line manufacturing, Spartan will need skilled employees and hence, spend on the training on existing employees. Finally, the Spartan will have to improve their inventory management in order to avoid stock out or material shortage.
2. The job shop is more suitable to specialized equipment as each order specific requirement changes individually. In the case study, Spartan is planning to manufacture standardized equipment, reducing the variety in the product line; for such type of production, flow operation is a more suitable approach. The change from job shop to flow operation impacts the requirements as well. In job shop the material requirement is not strongly predictable but in...