OPM500 - Operations Mgmt. for Managers Module 3 - Case - 10046

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Case: the Excellent Manufacturing Company & Capacity

 

***SCENARIO***

 

COMPANY EMAIL

 

FROM: George Washburn

 

SUBJECT: Capacity Analysis

 

As I said in my previous email, I have come to the conclusion that we will soon be faced with a major capacity issue based on the information that I have gotten from our Forecasting Manager. That means that even as we increase productivity we still need to consider how to deal with capacity as our demand increases. I am asking all Product Managers to do a capacity analysis in their areas of responsibility and develop both a short-term and long-term plan. As we begin to feel the crunch in the short-term, we can implement some of the ideas you propose in the short term plan, while at the same time, I will begin to have the Executive team consider the options for long term investment and capacity expansion. Your input on this matter is extremely important. I am looking for a thorough review and a plan with your recommendations and justification.

 

Let me know if you have any questions as you proceed. Thanks. ~GW

 

****Click here to go to EMC**** 

 

***LEARNING WIZARD***

 

Assignment

 

Analyze the capacity situation in the processes that are used to produce the Plasti-brack product line. What are the current capacity utilizations? What is the bottleneck? Determine an appropriate plan for improving the capacity situation. Justify your plan. Write a report to the VP of Operations. Consult your notes about capacity.

 

Consider using a second shift, if and when necessary. Can you justify this option, even if Bill Morton does not like them?

 

Expectations

 

·         Use the information provided in the Background readings. It is not necessary to do any additional research.

 

·         Review your notes about capacity at the Excellent Manufacturing Company and become familiar with the various capacities for the Plasti-brack product line.

 

·         Analyze the capacities including the rates of production, the amount of physical space and needs for equipment and people. At what level of capacity are these processes operating? What are some of the possible bottlenecks?

 

·         What impact does the forecast have on future capacity needs? What are the implications if the forecast is inaccurate (too high or too low?)

 

·         What are some possible ways of increasing capacity and what are the implications for the short term and long term such as costs and investment in capital?

 

·         Determine a plan for the capacity situation in the Plasti-brack product line.

 

·         Justify your plan based on the concepts of capacity management.

 

Use the Grading Guideline for Case3 to organize your paper and make sure you are meeting expectations for the best grade possible. Click Here.

 

READ the information provided by the resources and references on the Background page. Understand the theory and concept of Capacity, Capacity Utilization, and Forecasting.

 

Study the information about the Plasti-Brack product line and its Capacity Utilization. Understand the difference between Capacity and Capacity Utilization. Consider that the forecast indicates that utilization is going to increase which means there will be a need for more capacity. Determine how capacity can be increased in the both short term and long term.

 

NOTE: If you use the references provided in the Background, then you do not need to include a Reference section. If you do decide to use additional references, then you need to cite them and include them in a References section.

 

The report should be 3 to 4 pages.

 

 

 

Solution Description

 

Case: the Excellent Manufacturing Company & Capacity

 

***SCENARIO***

 

COMPANY EMAIL

 

FROM: George Washburn

 

SUBJECT: Capacity Analysis

 

As I said in my previous email, I have come to the conclusion that we will soon be faced with a major capacity issue based on the information that I have gotten from our Forecasting Manager. That means that even as we increase productivity we still need to consider how to deal with capacity as our demand increases. I am asking all Product Managers to do a capacity analysis in their areas of responsibility and develop both a short-term and long-term plan. As we begin to feel the crunch in the short-term, we can implement some of the ideas you propose in the short term plan, while at the same time, I will begin to have the Executive team consider the options for long term investment and capacity expansion. Your input on this matter is extremely important. I am looking for a thorough review and a plan with your recommendations and justification.

 

Attachments
OPM 500 Module 3 Case.doc
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