Pt1420 Unit 4 Bus Analysis
LITTLEFIELD LABS ANALYSIS
Global Strategy
Since the beginning the team decided to try an aggressive strategy to win the game, assuming a riskier position with higher potential benefits and costs. For that, it was necessary to identify key parameters of the process and design a dashboard to analyze the information and make decisions in a faster way. The key parameters we started monitoring were demand (jobs accepted), stations utilization and lead times of the entire process. The first goal was to balance the line and satisfying the demand.
Demand analysis and its relation to order kits
In order to predict the future flows of the demand and match the info with the kit orders we create a model in attempting to avoid stock breaks or …show more content…
Changing the contracts
When the balance was achieved on the process, then we started to intervene contracts since contract 3 provides the best profitability when the Lab is able to accomplish a promised lead time of 0.5 days being careful of change to contract 2 or 1 if the promised lead time would not be accomplished due to the circumstantial conditions of the process. To optimize the profitability of the jobs received on the first day of every week, we began to modify the contracts according to the following criteria:
- Contract 1: If machine 1 had more than 3 jobs waiting for kits on last day of the previous week.
- Contract 2: If machine 1 had between 1 to 3 jobs waiting for kits on last day of the previous week.
- Contract 3: If machine 1 had 0 jobs waiting for kits on last day of the previous week.
Finally, on day 150 we try an “all in” strategy spending $160.000 in 1 machine for station 1 and 2 to increase the capacity and to process jobs only on conditions of contract 3. This decision was taken based on a demand of 91 jobs and a utilization of station 1 of 0.83 between days 143 and
Global Strategy
Since the beginning the team decided to try an aggressive strategy to win the game, assuming a riskier position with higher potential benefits and costs. For that, it was necessary to identify key parameters of the process and design a dashboard to analyze the information and make decisions in a faster way. The key parameters we started monitoring were demand (jobs accepted), stations utilization and lead times of the entire process. The first goal was to balance the line and satisfying the demand.
Demand analysis and its relation to order kits
In order to predict the future flows of the demand and match the info with the kit orders we create a model in attempting to avoid stock breaks or …show more content…
Changing the contracts
When the balance was achieved on the process, then we started to intervene contracts since contract 3 provides the best profitability when the Lab is able to accomplish a promised lead time of 0.5 days being careful of change to contract 2 or 1 if the promised lead time would not be accomplished due to the circumstantial conditions of the process. To optimize the profitability of the jobs received on the first day of every week, we began to modify the contracts according to the following criteria:
- Contract 1: If machine 1 had more than 3 jobs waiting for kits on last day of the previous week.
- Contract 2: If machine 1 had between 1 to 3 jobs waiting for kits on last day of the previous week.
- Contract 3: If machine 1 had 0 jobs waiting for kits on last day of the previous week.
Finally, on day 150 we try an “all in” strategy spending $160.000 in 1 machine for station 1 and 2 to increase the capacity and to process jobs only on conditions of contract 3. This decision was taken based on a demand of 91 jobs and a utilization of station 1 of 0.83 between days 143 and