Swisher Systems Case Study Essay

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Summary Swisher Systems Corporation (SSC) is an industrial heating company that was established in 1949 (W.C. Benton, 2010). SSC is an innovator of flexible heating products, particularly with its knit and braided heating element. The heating element consists of a multi-stranded resistance wire which is knit and braided with fiberglass and is the center technology for most of all the Swisher Systems’ products. Swisher is also known in the heating industry as being the highest quality flexible heat supplier which manufactures control devices and heating cable. SSC holds several patents that support the company in sustaining market share. The patented grounded heating element provides extra safety that their…show more content…
After he completes his manual analysis, he then prioritizes which suppliers should be called first. Mr. Watkins manually phone, fax or email the purchase order to the suppliers.
2) Current inventory level – Every few days, Mr. Watkins performs a detailed analysis of inventory. He looks for trend that could establish larger-volume buying or reduction in inventory that the MRP action report would not recommend. There are times when volume discounts apply and he consults with the CFO of SSC to determine what the most profitable alternative is for SSC. The decisions are always made by Mr. Watkins and the CFO.
3) Interaction with people who use the part – Mr. Watkins frequently visits the plant floor and talks with the workers to see if there are any concerns with materials. If a need exists, a requisition form is filled out and the purchase will be made. These requests are usually from members of the engineering team and each engineering manager is responsible for forecasting, quality, and controlling cost for his/her specific section.
This routine is done every day which takes up quite a bit of Mr. Watkins time also is using quite a bit of paper. Even though the SIM 4500 MRP program prepares the report, Mike relies on his memory to make most of the decisions. Swisher utilizes an inventory requisition form that is manually completed by anyone who removes inventory from the stockroom. This relieves the inaccuracy in inventory as materials are moved in and out
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