What inventory problems are occurring

Assignment Help Operation Management
Reference no: EM131907904

Assignment

CASE: Pilton Motor Car

The Pilton Motor Car Company is re-designing its luxury car line. It has chosen the London Assembly Plant as the site of its "Launch Program" for the company's redesigned luxury cars. London had been chosen because of its superior quality control and closeness to suppliers and support facilities. London is producing the luxury line prior to scheduled production in another plant and is responsible for finalizing all engineering and production details for the massive redesign.

In executing the launch, one of the most complicated tasks is stocking the new parts inventory. Changes in ordering and delivery of parts for the line are more complex than in an ordinary model year.

Inventory building has engaged the staff for almost two months and is now at its height So far the most annoying and costly problem has been expediting the orders for parts which are undergoing changes and substitutions. Because of the fury in the Parts Control and Traffic Departments, morale is low and tension is building.

Similar to the agitation in those offices is the frenzy at the receiving docks. New parts are arriving by truck, railcar and even aircraft. Extra personnel have been temporary relocated from other assembly sites to ease the hurried receipt of parts. Even with the extra personnel, the receivers are starting to show signs of an inability to cope with the burgeoning workload, they are complaining about the task of deciphering bills of lading and packing slips. Because there is no universal standard, the receivers are often confused about part numbers, indicated quantities, and other information on bills of lading and packing slips.

In this turmoil, they are disregarding mandatory routines for receipt of goods and are themselves using dissimilar markings and exception symbols.

The receiving department sends it notated packing slips to the data processing department. There the keypunchers input the information into a Materials Requirement Planning System (MRP). Due to the current confusion over the receiving documents, the keypunchers are dubious about the accuracy of the resulting records. Feeling incapable of dealing with this problem, they have come to rely on the Engineering Specifications & Inventory Audit Department (Spec & Audit) to detect and correct any inventory errors.

Spec and Audit has the critical job of ultimate verification of inventory data. Each day personnel receive and audit computerized error lists that are output from systems programs designed to detect inventory discrepancies. For example -

• duplicate inputs
• quantities varying from invoiced quantities
• etc.

They have access to all the documents which can be used to trace discrepancies. Unfortunately, their source documents include the notated packing slips forwarded from data processing. At the time of error recognition, authorized audit personnel may input the necessary information and/or back out erroneous input. Any audit person can enter information into the system.

In an attempt to gain more control over the large influx of materials, the audit staff has temporarily changed the cycle count procedure. Because the staff suspects a high error rate, the number of full-time cycle-counters has been increased. With the additional staff, incoming parts are counted more frequently. Furthermore, there is rechecking of questionable counts to help identify errors and to evaluate the transferred personnel.

The most spectacular part of the "Launch" is the presence and participation of engineers from company headquarters. The large, imported staff is redesigning and substituting parts daily. Some inventory personnel are working nearly fulltime keeping track of the part substitutions and the paperwork associated with the changes. Keeping track of part numbers and inputting revised information into the computer so the system can function properly is arduous.

Amid all the commotion, production has begun. It is already plagued with shortages, poor productivity and rescheduling. The production supervisor wants to issue a general statement to vindicate himself, he wants it known that he is not responsible for a "cripple" rate of 1 out of three cars produced. He intends to shift the blame to two culprits - an inadequate inventory system and the new hires in the "launch".

Questions for Consideration:

1. What inventory problems are occurring? (List at least 5)
2. What could be contributing to the production problems? (List at least 5)
3. What goals should be set? (List at least 5)

Your answer should be 2 pages per question.

Reference no: EM131907904

Questions Cloud

Solve the miscellaneous question : During the early days of business growth, many sold or bartered products from their homes in what became known as.
How is the country involved in international trade : How is the country involved in international trade? How does the government get involved in trade issues? Will that help or hurt your financial institution?
Discuss progress you have made toward becoming a speaker : Discuss the progress you've made toward becoming a better speaker. Set a new goal to work toward in terms of public speaking.
Prepare a presentation dissecting the article that selected : Prepare a minimum of 10 slide Presentation dissecting the article that was selected. The presentation should be in APA format citing appropriate sources.
What inventory problems are occurring : What inventory problems are occurring? What could be contributing to the production problems? What goals should be set?
Radius of curvature of the bump : If the radius of curvature of the bump is r = 52 m, find the apparent weight of a 70 kg person in your car as you pass over the top of the bump.
Explain logic and process of working with various erm models : Explain the logic and process of working with various ERM models. Appraise the practices and role of a corporate Board of Directors.
What is the length of the system : In a certain linear conjugated pi-system, the n=5 --> n=6 transition is induced by light of wavelength 548 nm. What is the length of the system?
Respective stereo systems : Your recordings are identical. In your friend's frame, whose recording finishes first?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd