Potential advantages, Operation Management

Book Edition Company

Book Edition Company produces very rare cover pages for history books. Reader habits change a lot and they change their mind a lot. The cover pages are sold mainly in Germany although there is some trade with foreign countries. After a thorough survey, Book Edition Company expects that foreign demand will enjoy a dramatic increase, while US demand growth will be slight. Presently, cover pages sales are about 150,000 per year, with anticipated sales growth of 12 percent next year and the year after. For the three years following, estimations are for 8 percent growth each year.

Demand is highly seasonal in Germany for this cover pages market, and 60 percent of the annual demand is planned to be sold in October, November, and December. Cover pages are quite easy to store. Consequently, chief staff in charge has come to a decision to smooth production somewhat. Production in August, September, October, and November is set at 12 percent of projected demand. Production for January, February, and March is set at 4 percent and for the other months at 8 percent.

Book Edition Company has asked you to balance the cover pages assembly line to satisfy next year's production. For planning purposes, assume that each month has twenty-one working days. Assume that a shift has 7.5 hours of actual production time. As the assembly-line balancer, you may choose the number of assembly lines, the number of shifts, and the cycle time. Set the production rate so that demand for the peak months can be met. This will mean that extra capacity is available during the non peak months. The precedence list and estimated task rimes are as follows:

Task

Estimated time (seconds)

Immediate predecessor

A

43

 

B

32

 

C

45

A

D

26

A

E

54

A, B

F

8

C

G

44

D, E

H

12

 

I

30

F, H

J

13

G

K

28

I

1.  Balance the assembly line to satisfy the production plan for next year (with a percentage of demand produced each month) as described in me case.

2. Prepare a plan for meeting the projected demand increases for each of the next five years. Assume the production plan does not change.

3. Describe the impact on the present solution if Book Edition Company decided to produce the same amount each month-that is, to level the production. What extra costs would be incurred? What would the risks be? What are the potential advantages?

Posted Date: 2/21/2013 7:39:18 AM | Location : United States







Related Discussions:- Potential advantages, Assignment Help, Ask Question on Potential advantages, Get Answer, Expert's Help, Potential advantages Discussions

Write discussion on Potential advantages
Your posts are moderated
Related Questions
Describe the categories of problems that have been found to be approached by Six Sigma methodology Type your question here

Ask questiondiscuss the advisability of using modular assemblies in manufacturing. what are the advantages and disadvantages #Minimum 100 words accepted

• Discuss the advantages and disadvantages of self-administered interviewing, face-to-face interviewing, and telephone interviewing. • What is necessary for the success of each

1) Explain what an entrepreneur and entrepreneur are. How are they the same and how are they different? 2) Give me an example of an entrepreneur and discuss two typical entrepre

Imagine the difficulties of an employer whose decision context is choosing a new employee from a set of applicants whom he will interview. What do you think the employer's objectiv


Methods Used in Manufacturing - Operation Strategy Many of the methods used in manufacturing are just as applicable; however a greater degree of customisation will be required

When managing organizational change, which would be more effective in overcoming resistance to change: rational persuasion, leader-follower relationship, both, or something else

What is the average value of a loyal customer (VLC) at Abby''s restaurants (see Chapter 3)? What is the best way to increase revenue given your VLC analysis

What is the problem, opportunity, or challenge addressed in the article?  Executive Summary Manipal Hospital is situated in Bangalore, known as the Garden city of India.