Space Age Furniture Company: A Case Study
“A material requirements planning (MRP) system is usually implemented with several constraints, such as replenishment of inventories on a period-by-period bases, which obstruct its dynamic performance” (Timon Chih-Ting & Wolfe, 2000). In developing a MRP system for Space Age Furniture Company three important data requirements needed are: the master schedule, bill of materials, and inventory records. Per Vonderembse and White (2013), the three major inputs of an MRP system are the master production schedule (MPS), bills of material (BOM) and inventory records. The master schedule determines the exact number of parts needed to be produce to complete production; the bill of material provides a list of component and quantities needed--without
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regard to capacity-- to make to product, and provides information about the relationship of components--how to they fit together; and inventory records gives accuracy to the number of items available.
Coral Snodgrass Space Age’s operations manager is tasked with solving the production time and efficiency problem without further burdening Ed, the only operator of the lathe machine.
Right now, Ed works 8 hour shifts five days a week, and produces 1200 units (a unit every 2 minutes, 30 units every hour, and 240 per shift) of part no. 3079 produced weekly. However, received an order which requires 2000 units for part no. 3079 (1,000 sub-assemblies part no. 257 (Saturn) and 1,000 sub-assemblies is for part no. 435 (Gemini)) which means an additional 800 units more of what Ed produces during his regular shift, which means should Ed work in producing the additional units, he will work 26.6 hours in overtime to meet demand of the job. Unfortunately, due to the time restriction, the company not does have the time necessary to hire and train a new workman of Ed’s caliber to complete meet the order demand. Therefore, since Space Age has one week lead time in which to produce the ordered furniture, so Coral must convince Ed to produce the maximum number of part no. 3079 without incurring overtime. The completed parts would then be held stock until receives additional commissions. Space Age MRP process will go through the following steps in the Illustration
1.
Accordingly, the MRP that best suits Space Age Furniture Company would take in to account Ed’s additional work load and find ways to reduce it especially, as the lathe machine cannot run attended, hence Ed’s overtime. What’s more, employing MRP would result in the increase of productivity and the reduction of the production cost for Space Age. Moreover, as the company meets inventory demand, customer service improves orders placed for the goods and materials arrive as needed to meet the requirements of the master schedule, hence, no large inventories to maintain. Furthermore, Space Age can expect to see a more efficient supply schedule thereby allowing materials to be calculated accurately and faster which will help to improve the company’s competitive edge. Consequently, the chosen design accounts for the complex “Assemble-to-order” production process Space Age utilizes.
regard to capacity-- to make to product, and provides information about the relationship of components--how to they fit together; and inventory records gives accuracy to the number of items available.
Coral Snodgrass Space Age’s operations manager is tasked with solving the production time and efficiency problem without further burdening Ed, the only operator of the lathe machine.
Right now, Ed works 8 hour shifts five days a week, and produces 1200 units (a unit every 2 minutes, 30 units every hour, and 240 per shift) of part no. 3079 produced weekly. However, received an order which requires 2000 units for part no. 3079 (1,000 sub-assemblies part no. 257 (Saturn) and 1,000 sub-assemblies is for part no. 435 (Gemini)) which means an additional 800 units more of what Ed produces during his regular shift, which means should Ed work in producing the additional units, he will work 26.6 hours in overtime to meet demand of the job. Unfortunately, due to the time restriction, the company not does have the time necessary to hire and train a new workman of Ed’s caliber to complete meet the order demand. Therefore, since Space Age has one week lead time in which to produce the ordered furniture, so Coral must convince Ed to produce the maximum number of part no. 3079 without incurring overtime. The completed parts would then be held stock until receives additional commissions. Space Age MRP process will go through the following steps in the Illustration
1.
Accordingly, the MRP that best suits Space Age Furniture Company would take in to account Ed’s additional work load and find ways to reduce it especially, as the lathe machine cannot run attended, hence Ed’s overtime. What’s more, employing MRP would result in the increase of productivity and the reduction of the production cost for Space Age. Moreover, as the company meets inventory demand, customer service improves orders placed for the goods and materials arrive as needed to meet the requirements of the master schedule, hence, no large inventories to maintain. Furthermore, Space Age can expect to see a more efficient supply schedule thereby allowing materials to be calculated accurately and faster which will help to improve the company’s competitive edge. Consequently, the chosen design accounts for the complex “Assemble-to-order” production process Space Age utilizes.