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Trans-European Plastics

In:

Submitted By SandraVu
Words 501
Pages 3
Case study TRANS-EUROPEAN PLASTICS (TEP)

Course: Operations Management (engl.) Lecturer: Prof. Dr. Peter Franke Presented by: Binh Vu 14.01.2015

STRUCTURE

I. Introduction to TEP
II. Current problems III.Situation analyses IV.Suggested solutions

2

ALL ABOUT TEP
A. About business
• One of Europe’s largest manufacturers of plastic household items.
• A range of over 500 products sold to wholesalers and large retailers throughout Europe.

3

ALL ABOUT TEP
B. About production
• Manufacturing operation: batch production with 24 large injection-moulding machines.
• Three seven-hour shifts per day, Monday to Friday: 105 hours per week, for 50 weeks per year.

4

ALL ABOUT TEP
C. About services
• Order delivery within 24 hours of receipt using an international carrier.

• All customers would expect to receive their requirements in full within one week.

5

CURRENT PROBLEMS

• Declining delivery reliability

• Increased levels of finished goods inventory

• Falling productivity

SITUATION ANALYSES
1. Why is TEP unable to deliver all its products reliably within the target of one week?
Standard (non-overtime) production capacity: 105 1-machine hours per week
3 hours set-up time +

X

24 machines

=

2520 24-machine hours per week
23 hours to produce one batch

20 hours minimum run length

=

������������������������ ������������������������������ ������������������ ������������������������ ������������ ������������������������������ ������������������ ������������������������������ ������������������ ������������������������������������������������ ������������������ ������������������������������������������ ������������������ ������������������������

≈ 110 batches per week ≈ 4.5 weeks!!
7

SITUATION ANALYSES

Total moulding time for the re-order quantity = 2748 hours
8

SITUATION ANALYSES
3

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