121 Case
Decision:
Better inventory management
No production bottlenecks
Boosts employee morale
Background:
-c/o Alfranz
Symptoms: * Un-updated inventory levels (no EO, and tracking method) * Non separation of inventory control and store keeping * Absence of materials requisition (monitored inventory levels) * Idle people in the production department * Production bottlenecks * Long lead time * No safety stocks * No production planning * Inefficient floor layout of production facilities * Inventory control 3 people only
Problem Statement * What courses of actions should the company take in order to properly manage their inventory levels and production activities?
Management Proposed Solutions:
Controller Mr Flume – installation of company-wide computer system
Issue:
* tracking method lang xa, if wala paring naseset na ROP at EOQ computations useless pa rin * cost contraints
Production Manager Mr Ferris – hire temporary workers during bottlenecks
Issue:
* Short-term remedy that will compensate for the inefficiencies of the system * Idle time will still subsist * Does not address how to remedy the mismanagement of inventory levels * Adds costs (declining worker productivity as it encourages laziness.
Inventory control Manager Ms Coaster – more employees in the inventory control to check and recheck
Issue:
* The recording and storage of inventory are still under one department. There must still be an explicit and distinct separation between these two departments. * Effective when it comes to addressing the issue of inventory management inventory but would still give room for collusion among the employees.
Proposed Solution:
“Reorganize the inventory control department and reengineer the inventory transfer process”
* More employees for inventory control, * separate inventory control from storage, * presence of materials requisition form to provide for tracking
Better inventory management
No production bottlenecks
Boosts employee morale
Background:
-c/o Alfranz
Symptoms: * Un-updated inventory levels (no EO, and tracking method) * Non separation of inventory control and store keeping * Absence of materials requisition (monitored inventory levels) * Idle people in the production department * Production bottlenecks * Long lead time * No safety stocks * No production planning * Inefficient floor layout of production facilities * Inventory control 3 people only
Problem Statement * What courses of actions should the company take in order to properly manage their inventory levels and production activities?
Management Proposed Solutions:
Controller Mr Flume – installation of company-wide computer system
Issue:
* tracking method lang xa, if wala paring naseset na ROP at EOQ computations useless pa rin * cost contraints
Production Manager Mr Ferris – hire temporary workers during bottlenecks
Issue:
* Short-term remedy that will compensate for the inefficiencies of the system * Idle time will still subsist * Does not address how to remedy the mismanagement of inventory levels * Adds costs (declining worker productivity as it encourages laziness.
Inventory control Manager Ms Coaster – more employees in the inventory control to check and recheck
Issue:
* The recording and storage of inventory are still under one department. There must still be an explicit and distinct separation between these two departments. * Effective when it comes to addressing the issue of inventory management inventory but would still give room for collusion among the employees.
Proposed Solution:
“Reorganize the inventory control department and reengineer the inventory transfer process”
* More employees for inventory control, * separate inventory control from storage, * presence of materials requisition form to provide for tracking