Executive Summary
This report was reviewed by Mr. Alfred Jodal, President of the Blitz Company, to assess its current position as on October 1961 in order to plan company’s future operations.
In his assessment, he has expressed concerns regarding operating position of Blitz Company and has segregated the focus areas as production bottleneck, performance, quality and delivery issues.
Within a span of two years, Blitz, with its emphasis on design and development of electrical circuit boards, has acquired a competitive edge, owing to numerous patents and specialization for experimental devices.
Using financial analysis and assessing the manufacturing process, the report strives to address various operational shortcomings.
Production Bottleneck
• Bottleneck machine/ operation was not following a pattern.
• Order fluctuations & revision in customer specifications.
• Non judicious utilization of resources.
Enterprise Resource Planning may streamline production scheduling.
Customer support can be setup to accommodate revised customer specs.
Performance and Methods
• Standard production time not in sync with actual man-hours invested.
• Job methods require higher amount of non-value added activities.
• Large order book prevented the management from testing and implementing new efficacious ideas.
Review of standard production time by design team keeping their own historical production data as a benchmark as well.
Stress on ergonomics and lean manufacturing methods.
Horizontal deployment of Mr. Arthur Dief and his team’s production model.
Quality and Delivery Problems
• Due to higher order volume, quality was being compromised but it backfired as it increased rework, thereby, pushing the deliveries further back.
• Imbalance in product deliveries during the month.
Benchmarking necessary quality standards as per prevalent industry standards. However, stricter quality control can be accommodated on case-by-case basis.
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