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2. A description of the main issues raised in the case from the point of view of logistics management This report outlines issues Hammond Manufacturing’s Transformer group faced in cooperation within the entire Hammond Group. The main issue was described by Hammond’s management as late delivery from the cabinetry plant to the Guelph plant what displeased customers and caused numerous delays on production site. All problems can be divided in 5 general groups and will be described in detail further: 1. Forecasting Issues 2. Production Scheduling Issues 3. Organizational Issues 4. Process Strategy Issues 5. New Demand Management Issues 2.1. Forecasting Issues The sales team created forecasts in October for the following calendar…show more content…
This approach caused such problems as damage or loss of the parts what required additional waiting time for the production on the transformer plant. 2.5. New Demand Management Issues As the transformer plant has signed a new contract the production volume was expected to increase significantly. The new added volume would require several operational changes. Moreover, according to governmental requirements all standard enclosures have to be painted before final assembly what means one more additional production step 3. A description of the approach management adopted to address the issues raised in the case, if the approach is described in the case In the case study, Hammond management doesn’t adopt an approach to address the issues raised. Group 6 or SSKR Consultants suggested the following approaches to be adopted to address the five issues identified. Issue 1. Forecasting Issues within Hammonds Transformer Group Three problems were identified as Hammonds forecasting issues; the first problem was a forecasting inaccuracy which caused late deliveries of enclosures from the cabinetry plant in Guelph to the other side of town to the manufacturing transformer plant. This should be corrected by using shorter forecasting periods for each of the product ranges during the Collaborative planning, forecasting and replenishment (CPFR) method
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