Case Study Of Roug Rough Cut Capacity Planning

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

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,

Accordingly, to reach the scale of revenue required would mean increasing the number of transactions per month a few folds from 2,000 to 8,000 transactions. Moreover this would require not only increase in the marketing of the existing 2,000 products listed on the store, but a significant increase in the breadth of product offerings. If the number of vendors was not going to increase the current process might continue be manageable, nevertheless one of the Store’s strategies is to limit the number of products from each vendor to only 20, hence requiring an increase in the number of vendors fourfold which is relative to the increase in revenue.

The customers, wholesalers and retailers may order in large quantities with the expectation that they will receive a greater allocation of products that are in short supply. The impact on the supply chain is significant as the forecasted demand is greatly, and unrealistically, increased with these inflated orders. Eventually orders disappear and cancellations pour in, making it impossible for the manufacturer to determine the real demand for its products

Planning and Forecasting is a vital function of management especially as it is related to inventory management. Planning has four processes associated with it. They are establishing goals, formulating strategies, implementing the plan and evaluating its success. The planning process of inventory will assist the organization choose the correct inventory system resulting in reduced costs and increased efficiency. For any business, having large amounts of inventory could prove to be expensive. In most company’s the management team will forecast sales on a monthly basis in order to keep enough inventories to fill customer orders in a timely fashion but not have an overflow of stock. There are various types of

* Adjusting the workforce in response to changing demand eliminates some of the limitations of Production Plan 2

Two approaches are used for loading work centres: infinite loading and finite loading. With infinite loading jobs are assigned to work centres without regard for capacity of the work centre. Priority rules are appropriate for use under the infinite loading

Apple Inc. is one of the largest technology companies in the world. The company develops consumer electronic gadgets such as smartphones, computers, desktops, laptops, iPods and tablets. The company was formed in 1976 by Steve Jobs with an intention of making computers but later it changed its focus to include the manufacturing of consumer electronics. However, the company was dealt a big blow when its chief executive officer and founder Steve Jobs died. The company will therefore have to search for ways in which it will maintain its market dominance as well as capture new and emerging markets. This research therefore seeks to establish how Apple forecasts demand and manages its inventory (Apple Computer Inc., 2006).

Customer demand and product preference should be focused on to produce more of what the customer wants and to allow for stock reduction.

Produce more products so there is less restocking issues but not more than the market calls for (supply and demand),

There are constraints on capacity management and these are normally Time and Capacity. Time may be a constraint where a customer has a particular required delivery date. In this situation, capacity managers often "plan backwards". In other words, they allocate the final stage (operation) of the production tasks to the period where delivery is required; the penultimate task one period earlier and so on. This process helps identify whether there is sufficient time to meet the production demands and whether capacity needs to be increased, albeit temporarily.

In order to understand how to meet the increased demand, research was conducted to unveil the problematic issues the

This case study explains about reducing the temporary labor cost for any plant. Usually when ever there is an unexpected spike in the demand for the product, companies employed contract labor to handle the situation. This solution comes with add on headache of labor cost. Sometimes it results as the major concern to the production as per the cost aspect. In this case study, we shall look the possibilities of reducing the temporary labor expenses and streamlining the production line at the same time ensuring the financial benefits to the plant using six-sigma DMAIC methodology.

The purpose of this paper is to determine the various operations management techniques that can be engaged by Acme Mexico City in an effort to increase its profits and expand operations globally. The three operations management techniques to be examined are Data Analytics, linear programming, and sustainable supply chain management. This report finds that data-driven decision-making involves the collection, mixing and examining of data received from multiple sources throughout the organization. Acme gathers information from its suppliers, customers, partners, and competitors to make changes to its day-to-day operations management processes. Acme Mexico City management have come up with the estimated minimum and a maximum number of customer service employees needed on their floor. They have decided to be opened from 7am to 11pm daily and will have full-time and part-time customer service employees scheduled. In compliance with Mexican law and corporate policy, the hours of part-time customer service employees is restricted to 50% of a day 's total scheduled hours. Given these components, Acme Home Improvements operations analysts working with its technical managers have proposed a standard day assignment schedule developed using numeral linear programming. The daily assignment schedule proposed by management operations analysts is accordance with the restrictions set by Mexican law and corporate policy. The proposed schedule is complaint with scheduling part-time employees

A local labor intensive manufacturing firm, showcased in the article, was confronting the overarching constraint issue—deficient capacity of polish shop. Though having been achieving substantial growth both in domestic and exports, no more additional capacity can be developed in this polish shop unfortunately. Therefore we could