Operations Management

Euro Pumps is a firm manufacturing complete fluid pumps for direct supply
to customers who then build the pumps into their own products.

The firm uses conventional machining methods to produce the pumps from
forgings. It is in the middle of introducing a new range of pump designs in
response to market needs.

In the long term there is insufficient capacity to produce the workload
required.
In the short term there are imbalances in the allocation of manpower
resources and serious shortages of sub-assemblies as a result of work
queues.

Taking the correct action to set-up the company to meet the long term
workload while also taking effective steps to relieve the short term
problems will bring the firm to a profitable operating condition with zero
arrears and the potential for more lead time and work in progress
reductions.