Bayonne Case
Management Operations
Case-Study 1
BAYONNE PACKAGING, INC.
Table of Contents
Executive Summary ……………………………………………………………………………………………………….2
Introduction…………………………………………………………………………………………………………………..2
Company Overview………………………………………………………………………………………………………..3
Industry overview…………………………………………………………………………………………………………..3
Process Analysis……………………………………………………………………………………………………………..4
Main problems and recommendations………………………………………………………………………………10Executive Summary
In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good quality and time delivery. Once one of these three performances is damaged, many hidden problems will be aroused. On the contrary, the organization can have a reduction of transaction costs as well as an increase of benefits. The purpose of this report is to understand the trade-offs among the three performance measures while increasing the complexity of customer ordering requirements and how information flow and production control rules affect operations. Afterwards answer the questions that new VP Operations, John Milliken is asking himself. First of all we started to answer the guideline questions. We computed the current capacity utilization in the work centres, and then we found the capacity in pieces of the die-cut work centres, in the different ganging choices (no gangins, ganging pairs of orders or ganging all of the orders). After this we had to focus on the differences between partialed and non-partialed orders of the Royal/Queen work centres so we could analyze the changes in capacity. Concerning the Fold&Glue department, Bayonne Inc. can choose between Royal/Queen and Staude machines, we computed the optimum batch quantity, according to orders’ volume. To conclude about the efficiency of some work centres we
Case-Study 1
BAYONNE PACKAGING, INC.
Table of Contents
Executive Summary ……………………………………………………………………………………………………….2
Introduction…………………………………………………………………………………………………………………..2
Company Overview………………………………………………………………………………………………………..3
Industry overview…………………………………………………………………………………………………………..3
Process Analysis……………………………………………………………………………………………………………..4
Main problems and recommendations………………………………………………………………………………10Executive Summary
In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good quality and time delivery. Once one of these three performances is damaged, many hidden problems will be aroused. On the contrary, the organization can have a reduction of transaction costs as well as an increase of benefits. The purpose of this report is to understand the trade-offs among the three performance measures while increasing the complexity of customer ordering requirements and how information flow and production control rules affect operations. Afterwards answer the questions that new VP Operations, John Milliken is asking himself. First of all we started to answer the guideline questions. We computed the current capacity utilization in the work centres, and then we found the capacity in pieces of the die-cut work centres, in the different ganging choices (no gangins, ganging pairs of orders or ganging all of the orders). After this we had to focus on the differences between partialed and non-partialed orders of the Royal/Queen work centres so we could analyze the changes in capacity. Concerning the Fold&Glue department, Bayonne Inc. can choose between Royal/Queen and Staude machines, we computed the optimum batch quantity, according to orders’ volume. To conclude about the efficiency of some work centres we