Company Background
Otto Environmental Systems North America, Inc. is a plastic manufacturer of waste and recycling containers we are tier one supplier for some parts to GM and Electrolux. Our mission is to provide innovative products created for today’s collection needs and customized services developed with technology and experience.
Problem
Current Situation
Inventory is the plaque in my organization; as we continue to follow the production practices as was being done in the past. The fundamental cause of such trend is based on the fact that all the machine/equipment and also the available manpower have to be kept busy irrespective of actual requirements. Almost all the managers in the organization have the wrong notion that large batch sizes reduce the element of setup time that is a reduction in throughput time. In fact, the results achieved go contrary to expectations. One of the important reasons is a wide variety of products, varied demand for each category including rationalization of production numbers by the planning department to match with the sales requirements. e.g. If we have an order for 400 95 gallon carts then the planning department plans for 410 generating overproduction. Besides the overruns, the demand we are placing on our machines to be busy without solid orders from customers by generating genetic products.
Wasteful Impact to the Organization
Products overruns hurt the organization on all levels, some may be visible others may not, the core effect
During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas
Some of the disadvantages are: limiting the vendors may limit the variety of products, relinquishing inventory control over to vendors and distributors may negatively impact their customer satisfaction, and the customers may decide to deal with supplier directly which could put Best Buy at risk of loosing their business.
Try to reduce overall production runs by aggregating different orders, thereby increasing batch size. Marketing strategy of delay in turnaround time is required to achieve this
Risk of increasing labor costs faster than expected which could directly impact the pricing of the products
Harm reductions recognizes an individual’s willingness to make a change in their life, there is a wide range that these individuals may be along, from not thinking about change, to contemplating change, to taking action, to maintaining change and the other way around. The method of harm reduction first begins with focusing on what stage the individual is on with their drug use. As earlier stated the active participation of individuals who use drugs is at the heart of harm reduction. These individuals are the best source of information in terms of their own drug use and are determined with the help of other service agencies to determine the best form of intervention. There have been many success stories from having injection sites as a form
In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering
Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)
This then translates to a 50% chance of not having inventory available during job opportunities. Therefore, opportunity costs might occur. The indifference of the production managers' in these aspects of inventory control is alarming and should be acted upon.
The timing of capacity changes also needs to be taken into consideration to achieve maximum efficenty given that demands of their products varies with seasonal changes. The ability to react to market demand changes quickly will determine manufacturers flexibility in keeping up with these demands. Manufacturers needs facilities to produce, whether warehouses to store its raw materials or finished goods, or manufacturing plants to produce their products. Services facilities are needed by certain manufacturing industries such as consumer electronics to cater for returns. Distribution centres also determine the efficenty of production distribution and un-nesessary inventory holding will result in higher holding cost. Such facilities require large investments and are integral of the manufacturer’s supply chain strategy and thus proper planning is needed when making these decisions regardong the size, location which affect the overall operations. How manufacturers run their productions also determine how successful will they be in terms of productivity and quality levels. Different types of equipment and processes also affect the cost and output of the manufacturing plant. Information systems that flow both upstream and downstream affects the forecasting, planning, inventory and production levels, they must be robust to ensure the manufacturing firm is able to react accordingly to changing demands and variations. In addition to their internal environment,
A. Describe Eco-Products’ early history (1990 through 2003). Would you view the firm during that period as being a life-style business, an entrepreneurial venture, or? Why?
All organizations strive to streamline operations, which in turn should lead to saving money. Fighting the wasting of resources should be a top priority for any government entity and particularly for supervisors, managers, and executives. In the public sector this is particularly true because the citizens in effect supply the resources wasted. The public trust should not be abused by careless or needless spending. However, because of the bureaucratic nature of any government agency, some waste cannot readily be avoided. The laws and regulations that have been duly enacted to secure justified expenditures in and of themselves can cause waste.
4) Exploring the possibility of implementing JIT (Just in Time) system that can reduce the finished goods inventory at
A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data
Produce more products so there is less restocking issues but not more than the market calls for (supply and demand),