STATS & OPERATIONS TASK Case Solution Case Solution & Answer

STATS & OPERATIONS TASK Case Solution

Question 3

            Having a single or multiple suppliers for a particular assembly line for the company would have advantages and disadvantages of both. These are evaluated below:

Single Supplier

            If the company has a single supplier for its brakes assembly, then the management can form a long term partnership with that supplier. A long term relationship between the company and the supplier would be created based on information sharing, trust and financial benefits for both the parties. Ultimately, a win-win situation would be created. Another advantage could be that the supplier might own a unique resource or have patents which could be utilized by the company only. Pricing discounts can be easily availed due to the long term nature and large unit purchases. Deliveries could be done flexibly and JIT can be implemented. However, the disadvantage of this would be that if the supplier is faced with any disaster such as fire at his warehouse etc then there would be no source of the products for the company. Apart from this, the supplier might not be able to supply larger quantities when the company begins to expand and most of the time the government also requires to use multiple suppliers for government projects.

Multiple Suppliers

            There are also many advantages associated with multiple suppliers for the brake assembly of the company. The suppliers would compete with one another in order to provide the company with value products. If any supplier is faced with any disastrous situation, then the company can go to other suppliers and even if one supplier cannot fulfill the demand of the company, then the company can go to other suppliers. However, the disadvantage of this would be that the management would not be able to develop a strong relationship with any single supplier and price discounts can also not be availed easily. Cost savings would be lower due to lower quantity demanded and the information sharing becomes riskier. Suppliers might also not be responsive in emergency situations.

Recommendation

            Choosing the suppliers is one of the most crucial and an important decision area for the management of any company. The value and the efficiency of the supplier is ultimately reflected in the end product of the company. Since the company is operating in a manufacturing business, therefore, having multiple suppliers is recommended for the company. Shortage of the inputs in future can cause the company’s production and sales to suffer. Having a single supplier can create long term relationships but in this case, hacing multiple sources of suppliers is more important for the company.

Question 4

a).

The process control charts have been created in the excel spreadsheet.

b).

            Two charts have been created in the excel sheet. The first chart is the process control chart and this has been created to test that whether the process for making the energy supplements of the desired weights is in control or not. The second chart which has been created is the moving range chart which is also a type of the process control chart and this chart has been generated to show the process variations for the individual observations.

c).

Looking at both the charts, it could be said that the overall process is in control because the values lie within the upper and the lower control limits and they deviate consistently in similar fashion with regard to the average moving range.

d).

the control charts have been re-created for these new period observations and it could be seen that, the overall energy bar process has improved based on these new data for the periods 31 to 40……………

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