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Case2 Jim

In: Science

Submitted By edgarjimb
Words 403
Pages 2
Jim Wells, vice-president for manufacturing of the Northern Airplane Company, is exasperated. His walk through the company’s most important plant this morning has left him in a foul mood. However, he now can vent his temper at Jerry Carstairs, the plant’s production manager, who has just been summoned to Jim’s office.

“Jerry, I just got back from walking through the plant and I am very upset.” “What is the problem, Jim?” “Well, you know how much I have been emphasizing the need to cut down on our in-process inventory.” “Yes, we’ve been working hard on that,” responds Jerry. “Well, not hard enough!” Jim raises his voice even higher. “Do you know what I found by the presses?” “No.” “Five metal sheets still wait to be formed into wing sections. And then, right next door at the inspection station, 13 wing sections! The inspector was inspecting one of them, but the other 12 were just sitting there. You know we have a couple hundred thousand dollars tied up in each of those wing sections. So between the presses and the inspection station, we have a few million bucks worth of terribly expensive metal just sitting there. We can’t have that!”

The chagrined Jerry Carstairs tries to respond. “Yes, Jim, I am well aware that the inspection station is a bottleneck. It usually isn’t nearly as bad as you found it this morning, but is a bottleneck. Much less so for the presses. You really caught us on a bad morning.” “I sure hope so,” retorts Jim, “but you need to prevent anything nearly this bad happening even occasionally. What do you propose to do about it?” Jerry now brightens noticeably in his response. “Well actually, I’ve already been working on this problem. I have a couple of proposals on the table and I have asked an operations research team on my staff to analyze these proposals and report back with recommendations.” “Great,” respond Jim, ”glad to see you on the top

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