Process Strategy at Wheeled Coach Video Case
Video Case
Wheeled Coach, based in Winter Park, Florida, is the world’s largest manufacturer of ambulances. Working four 10-hour days each week, 350 employees make only custom-made ambulances; virtually every vehicle is unique. Wheeled Coach accommodates the marketplace by providing a wide variety of options and an engineering staff accustomed to innovation and custom design. Continuing growth, which now requires that more than 20 ambulances roll off the assembly line each week, makes process design a continuing challenge. Wheeled Coach’s response has been to build a focused factory: Wheeled Coach builds nothing but ambulances. Within the focused factory, Wheeled Coach established work cells for every major module feeding an assembly line, including aluminum bodies, electrical wiring harnesses, interior cabinets, windows, painting, and upholstery
Labor standards drive the
Discussion Questions*
*You may wish to view the video that accompanies this case before addressing these questions.
3. Why is it more efficient for the work cells to prepare “modules” and deliver them to the assembly line than it would be to produce the component (e.g., interior upholstery) on the line?
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Operations Management, Student Value Edition
- PROCESS STRATEGY AT WHEELED COACH Wheeled Coach, based in Winter Park, Florida, is the world’s largest manufacturer of ambulance. Working four 10 hour days each week, 350 employees make only custom-made ambulances. Virtually every vehicle is unique. Wheeled Coach accommodates the marketplace by providing a wide variety of options and an engineering staff accustomed to innovation and custom design. Continuing growth, which now requires that more than 20 ambulances roll off the assembly line each week, makes process design a continuing challenge. Wheeled Coach’s response has been to build a focused factory. Wheeled Coach established work cells for every major module feeding an assembly line, including aluminum bodies, electrical wiring harnesses, interior cabinets, windows, painting, and upholstery. Labor standards drive the schedule so that every work cell feed the assembly line on schedule, just-in-time for installations. The chassis, usually that of a Ford truck, moves to a…arrow_forwardWhat Is assembly chart?arrow_forward3. ere the firm works with the customer to design the product, which is then made from purchased material, parts, and components? Multiple Choice Assemble-to-order Custom order Make-to-stock Engineer-to-order Make-to-orderarrow_forward
- California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is units. (Round your response to the nearest whole number.)arrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is 112000112000 units. (Round your response to the nearest whole number.) Part 3 b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month? The monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month is $enter your response here. (Round your response to the nearest dollar and include a minus sign if necessary.)arrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. a) What is the crossover point in units (point of indifference) for the processes? The crossover point isunits. (Round your response to the nearest whole number.)arrow_forward
- Draw a process fl ow diagram of your last doctor’s offi cevisit. Identify bottlenecks. Did any activities occur in parallel?arrow_forwardWhat is process strategy?arrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and dis-tributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replacethe old machine, referred to in the shop as “Clunker.” Hi-Speedwill have a fixed cost of $85,000 per month and a variable costof $1.25 per bag. Clunker has a fixed cost of only $44,000 permonth, but a variable cost of $1.75. Selling price is $2.50 per bag.a) What is the crossover point in units (point of indifference) forEric Limon/ Shutterstock the processes? b) What is the monthly profit or loss if the company changes tothe Hi-Speed shredder and sells 60,000 bags per month?c ) What is the monthly profit or loss if the company stays withClunker and sells 60,000 bags per month?arrow_forward
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