Littlefield Technologies Part 1

664 Words Apr 21st, 2013 3 Pages
April 8, 2013

Group Report 1: Capacity Management

The following is an account of our Littlefield Technologies simulation game. The account includes the decisions we made, the actions we took, and their impact on production and the bottom line.

Day 53
Our first decision was to buy a 2nd machine at Station 1. We did not have any analysis or strategy at this point. Nonetheless, this turned out to be a wise investment, since Station 1 was in danger of becoming a bottleneck in production.

Station 1 Utilization

One of our team members conducted a full operations analysis. Using the analysis, demand for the 268 days of production was forecasted, and our strategy set accordingly.

Day 71
On Day 71 Station 3 suddenly spiked to
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Station 2 Queue Size Day 78

Days 122-150
Increasing demand caused Stations 1 and 2 to max out and become bottlenecks. Our response was to shift the Priorities at Station 2 and monitor the effects. We hesitated to buy extra capacity since, based on our forecast, we expected demand to slacken.

Station 1 Utilization

Station 2 Utilization

Day 173
Due to the bottlenecks and Stations 1 and 2, our revenues started to decline sharply to the point where they almost became zero. We continued to monitor production hoping that demand would level out or decrease as expected.

Revenue Day 173

Day 177
By Day 177, our production has come to a halt, and the cash positions of the teams which had bought extra machines had surpassed ours. To loosen the bottlenecks, we made the decision to make an investment of 170K in machines. We bought an extra machine both at Station 1 and Station 2. Almost immediately, our factory was running again and revenues started to rise.

Station 1 Utilization Day 150-268

Revenues Day 177-250

Conclusion
Our final Overall Standing was 4th position out of 6 teams. Our team could have been more proactive before the game started. We should have invested in additional capacity before bottlenecks occurred in production. The failure to avoid the bottlenecks can be attributed to our miscalculation of demand after day 150. Otherwise, we would have invested in extra capacity at critical points of increasing

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