Recommend any changes that might be beneficial to the company and/or add value for the customer. Describe ways that management can keep track of job status and location during production. Compare and contrast the types of production processing-job shop, batch, repetitive, or continuous-and determine which the primary mode of operation is and why.į. Calculate a new MRP that improves the base MRP.Į. Analyze the trade-off between overtime costs and inventory costs.ĭ. Suggest ways for improvements over sub-assemblies in lot sizes of 1,000.Ĭ. The lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079. Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.ī. Respond to the following and include any Materials Requirement Planning (MRP) calculations:Ī. Read “Space Age Furniture Company” in Chapter 9 of your text. Additionally, the machinist is paid at $22 an hour, and is allotted an additional 50% pay for any overtime incurred.BUS 644 Operations Management – Entire CourseīUS 644 Week 1 DQ 1 Ethical Issues and Operations.docxīUS 644 Week 1 DQ 2 Business Processes.docxīUS 644 Week 2 Assignment Memorial Hospital.docxīUS 644 Week 2 DQ 2 Product Design and Quality.docxīUS 644 Week 3 Assignment Outsourcing.docxīUS 644 Week 3 DQ 2 Forecasting Methods.docxīUS 644 Week 4 Assignment Beck Manufacturing and Plant Capacity.docxīUS 644 Week 4 DQ 1 Process Selection Product Design and Capacity.docxīUS 644 Week 4 DQ 2 Monique Food Processing Company and Capacity.docxīUS 644 Week 5 Assignment Alliance Supermarket and Point-of-Sale (POS) Systems.docxīUS 644 Week 5 DQ 1 Materials Requirements (MRP) Inventory and Customer Service.docxīUS 644 Week 5 DQ 2 Perpetual versus Periodic Inventory Systems.docxīUS 644 Week 6 DQ 1 Just-in-Time (JIT) Inventories.docxīUS 644 Week 6 DQ 2 Scheduling Procedures.docx It takes 0.03 hours a unit to produce each 3079, $0.25 to store the parts for another week, and $0.75 to hold the sub-assembly unit in storage. Though no stock is currently held at Space Age, it is estimated by Snodgrass that it costs Space Age $1.25 to store the Gemini, and $1.50 to store Saturn. Each sub-assembly is made in lots of 1,000, with no other orders accruing. 435 and 257, respectively), and the lead time for each assembly consists of a solid week of the lathe being used for nothing else. The parts for the Gemini and Saturn sub-assemblies are not in stock (no.
The MRP master schedule allows customer orders to be held, with items shipping through the use of Just-In-Time policies. SPACE AGE 3 production values high while balancing the downtime needed for the machinist to sufficiently recover. Snodgrass) needs to identify ways to keep As the operations manager does not want to lose the machinist to overwork, he (Mr. This particular employee is a “rare find,” in that he is a highly knowledgeable machinist, and he is also not happy about the copious overtime he must work to keep the machine running optimally. However, this requirement often results in the occurrence of overtime, as while the machine can run unattended, it is generally desirable that it is overseen by a human being. This particular lathe machine has only the one purpose, to create the aforementioned part, and only requires a single employee to operate. MRP development At Space Age Furniture Company, two products (the Gemini television stand and the Saturn microwave stand) share the same part number (3079), both of which require a particular lathe machine to create. This paper will explore ways to improve business practices through the lens of materials requirement planning (MRP), which Vonderembse and White (2013) identify as enabling “firms to provide the maximum output, and reduce inventory while satisfying the needs of customers and order fulfillment.” Further, this paper will also discuss primary operational modes, a new MRP will be illustrated, trade offs for inventory and overtime costs will be discussed, and improvements for making lot sizes of 1,000 more efficient will be illustrated. MRP implementation helps companies in the avoidance of bottlenecks and other undesirable states, through ensuring that production materials are available when needed. SPACE AGE 2 Space Age Furniture Company Introduction According to Vonderembse and White (2013), Space Age Furniture Company is a television and microwave cabinet and table manufacturer while each product varies in dimensions and features, they all share a similar operational process.
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