Improving Planning and Production Process
Essay by Chin Chin • September 27, 2016 • Case Study • 481 Words (2 Pages) • 1,081 Views
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CASE STUDY NO. 9
IMPROVING THE FORECASTING AND PRODUCTION PLANNING PROCESSES
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CASE PROBLEM
A major producer/distributor of household electrical and hardware products suffered from poor customer service, manufacturing bottlenecks and organizational & functional inadequacies. New ownership was disappointed with financial performance and realized that significant improvements were necessary. Customer service metrics hovered below 70% (Orders shipped complete in 3 days or less), and a bloated SKU base included nearly 100 out of stock items. Inventory planning was ad-hoc and the forecasting process was inadequate. Ownership decided that immediate relief to service performance was required. DHC was retained to develop process improvements in the forecasting and planning areas, including organizational recommendations and IT integration.
CASE ANALYSIS
- Brief Summary
A household electrical and hardware producer/distributor has been suffering poor customer service, manufacturing bottlenecks, and other organizational and functional inadequacies on areas such as the forecasting and planning, which resulted to disappointments with financial performance. New ownership decided that immediate relief was required to regain service performance.
- Situational Analysis
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- Statement of the Problem
The focal points of this case study are the weaknesses identified in the company under study. The analysis invested will be used to seek answers to the following questions:
- What recommended alternatives could be indorsed to address the identified issues?
- What are the benefits of the chosen alternative?
- Alternative Course of Action
Alternative 1 | Alternative 2 |
ABC Item Classification, Customer Segmentation, and Inventory Analysis | Implement a much appropriate layout |
PROS | PROS |
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CONS | CONS |
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- Recommendation
It is most recommended to choose and implement the first alternative. The company must pursue with its improvement plans, and ask for third-party consultants to develop and implement process improvements throughout the organization. A replacement for the inadequate demand forecasting should be researched, identified, and recommended. Also, IT integration through installation of new software is advised to develop business processes that will strengthen relationship between various departments.
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