Case â€“Westridge Cabinets Case Solution
Thermo foil Doors:
Â Â Â Â Â Â Â Â Â Â Â Exhibit 1 specifies that the cycle time spenton this product are 175 minutes per box. The sales and the volume of Thermo foil are less than the wooden doors sincethe demand for this product is low. Moreover, the department transfers timing is 15 days as the material spends 3 days in a single department.
Â Â Â Â Â Â Â Â Â Â Â As shown in Exhibit 1 the cycle time spenton the melamine doors is64 minutes per box, which is the least among any other product of the company. The product also has low backlog hours, which indicates that the product is efficiently produced by the company. However, the department transfer time is too high as the material is transferred in 6 days from one department to another.
Bottleneck in Production
Â Â Â Â Â Â Â Â Â Â Â The bottleneckfor the production of the company is the assemblydepartment as it has the highest backlog days as compared to other departments. This should be the concerned factor for the company to improve itsefficiency of the assembly department. The customers are dissatisfied due to delays in assembly department. The bottleneckof thecompany is that which reduces the productivity of the company as in this case the assembly department isnot working properly. Therefore, the company should improve the activities of this department and allocate more staff in this department so that backlog workings can be reduced and delays can be eliminated, which would resultin customer loyalty.
Staffing levels for Current Demand
Â Â Â Â Â Â Â Â Â Â Â Proposed stafflevels are provided in Exhibit 2, which is based on backlog days.Current staff allocation is not appropriate for the company to generate optimal results as there is high demand from the prospective customers. There are various departments in the company having backlog working days, which indicates thatthe working isnot completed and requires more days to complete. Spray stain, assembly, and lacquer department havethe highest backlog days as compared to other departments. These backlog days have ledto the delays in the fulfillment of the orders of the customers. In order to reduce the delays the company should allocate staff based on the back log days, which is not the case at the company. For example, the assembly department should be provided morestaff so that backlog will reduce. Additional hiring of staff can be beneficialforthe company as the demand of the product is increasing due to which the company has to increase its production.
Throughput time for a Typical Cabinet
Â Â Â Â Â Â Â Â Â Â Â Exhibit 3 shows that a typical cabinet takes 837 minutes to manufacture per box.Moreover, atypical cabinet contains shining doors, and the box parts for the doors. Throughput time is the manufacturing time which indicateshow much time the company will require passing a product from the process of converting the raw material into finished goods. The total time spenton the typical cabinet is 837 minutes per box, which indicatesthat the raw material passes through all the process and becomes a finished good in 837 minutes per box. This time includes time spent on the doors being manufacturedand the time required to complete the box parts, which are 776 and 61 minutes per box respectively.Â (stream, 2000)
Actions Taken as Mayank Chadha
Â Â Â Â Â Â Â Â Â Â Â Efficiency in the operations and process is thekey for better management of the process. Additional resources should be provided to the bottleneck process so that it will reduce the backlog working and would result inless delays. Production schedule should be examined to ensure that the optimal results can be achieved, since the current staff allocation is not appropriate and does not generate reasonable returns.
Â Â Â Â Â Â Â Â Â Â Â Due to higher work in progress, the inventory holding cost will increase. In order to control inventory levels and cost the control, the management should determine the levels of the stock where the cost ofthe company is minimal so that the profitability of the company can increase. Currently, the company is facing difficulties to manage its inventory, therefore just in time system is better to manage the inventory levels.
Â Â Â Â Â Â Â Â Â Â Â As the demand of the products is increasing, therefore the company has to consider increasing its production facility so that it would be able to meet the demand of the customers.New innovative plant will increase the productivity of the company as well as it wouldimprove the quality of the product as well. Through this, the company can capture the market and with the help ofthe economies of scale, the cost of production will reduce……………………
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