Production Management
Short course
Inhouse
Description
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Type
Short course
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Methodology
Inhouse
Suitable for: This case study needs to be run over several days because of the number of issues to be analysed and considered. It is equally suitable for people from manufacturing engineering, production control and finance backgrounds, particularly when they work together in mixed discipline teams. The procurement of large quantities of raw materials and bought in parts makes it suitable for applying inventory control techniques through the manual placement of purchase orders.
Reviews
Course programme
This company manufactures a range of five electronic circuit boards. The products consist of special purpose signal amplifiers and logic control units. The manufacturing processes prepare the circuit boards, assemble the components to the boards and then test and inspect the finished products. There are approximately 40 employees producing about 2000 final products per month.
ProblemsElectro Products has the problem of being over capacity and inefficient. It is however profitable, but cost reductions are necessary in order to pass on lower prices to the customers in a very competitive market where price reductions during a product's life cycle are expected. These reductions can only come about through increased manufacturing efficiency and reduced costs.
The challenge is to take control of Electro Products and make it efficient in every aspect of its operation while guaranteeing on time delivery. The investment in new automated production equipment is just one of the considerations to be evaluated.
The decisions that need to be taken will be expensive to reverse if they prove to be wrong. For example disposed of surplus plant will be expensive to buy if needed again or making operators redundant when they may still be needed and have to be recruited again.
Production Management