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MCCALL DIESEL
MOTOR WORKS
(Need for a complete system for
production control)
To be submitted by;
ACOT, Amenolah
ACEVEDO, Goldie
CASTRO, Korina
CEPRES, Bernadette
CONDE, Kimberly
GAY-YA, Carla
LAURIO, Gela
POOYA, Jadery
To be submitted to:
DR. ROWEL E. ANTONIO
OVERVIEW
McCall Diesel Motor Works has been a pioneer in the manufacture of a particular
internal combustion engine. The plant is located on tidewater in the state of New
Jersey because the company originally built engines for the marine field, chiefly fishing
boats pleasure craft. Subsequently, its activities were extended to the stationary types
of engines, used primarily for the production of power in small communities in
manufacturing plants, or on farms.
The company has always been advanced in its engineering department and
design. The production phase, on the other hand has not been progressive. The
increasing popularity of diesel engines has brought many new producing companies
into the field.
About the Companys design, many of the engines designed were one-off
products and made specifically to order. Although this type of work still represent 60
percent of those manufactured, there has been a move towards standardizing many of
the component parts to reduce the variety of parts. This allows a degree of
interchangeability, especially for small components such as studs, bolts, and spring, or
as mechanical fasteners. There also has been reduction in the variety of engine sizes
available with introduction of a standard range of three sizes: 20, 40, and 60 HP
The company has always been advanced in terms of its product engineering, in
the development and design of their product. The production phase on the other hand,
has not been so advanced. The heritage of production in the type of job shop
operation persists, and despite the tendency of standardization, the company is still
continues largely on a made-to-order basis. The increasing popularity of diesel
engines meant that competition has been tight because it brought may new entrants
to the market.
High manufacturing cost and poor service have been reflected in the loss of
orders. Customer complaints together with pressure from sales department prompted
management to call in a consulting engineer to make survey of the Manufacturing
department and recommend a plan of action for improvement.
The engineer showed the report from the manufacturing methods, Machinery and
equipment, and production control. The senior management recognizes that in order
to service, there is an urgent need for change. However, they are having difficulty in
convincing the workforce of this and implementing any change. In the main, the
management sees the problem as the resistance of the workforce to change their
working practices. However, the workforce see the main problem as being the fact that
the senior management are essentially sales minded and dont understand the
problem of production planning and manufacturing.
I. TIME CONTEXT
Because there is no specific date in the case study, we conclude that the time
context of the study is at the present time.
II. VIEW POINT
The viewpoint of the study is the engineers.
Because they are the ones who make the surveys to know what is wrong with the
company and reasons why does the company are having a lot of customer complaints
and why are their sales are decreasing. The engineers also are the ones who
discovered the problem and have some recommendation.
III. STATEMENT OF THE PROBLEM
McCall Diesel Motor Works is currently going through where the current systems
have collapsed. They embody the main problems in the field of production
management. How will the McCall Diesel Motor Works can provide the need for a
general system of production control?
From the start of the case study, it was already stated to the title that McCall
diesel motor works need a complete system of production control. Also the engineers
also notice that the production planning and control of the company have no formal
system. In fact there is resistance from the production manager to implementing any
such formal system. The lack of any such formal system has resulted in high work in
process and failure to meet delivery times due to lack of work in process monitoring
and information on manufacturing lead times. Production planning has also failed to
take advantage of the economies of scale afforded by the use of standard parts. There
is also lack of formal approach to lot sizing and how the lots are processed through
the shop floor. This has led to lots being lost and the order being reissued only for the
lot to turn up.
IV. STATEMENT OF THE OBJECTIVES
Short range
To limit bottleneck area
To continue produce quality engines for small stationary power plants for
small communities
To minimize the high production costs and low customer service
To minimize the customer complaints
To be able the General Superintendent not opposed the ideas of Engineers.
To increase sales of the company
Long range
To maximize efficiency and utilization of machine
To become the best manufacturer of internal combustion engine in the
country after 5 years.
To provide the need for a general system of production control
To ensure customer satisfaction by meeting the delivery date.
V. SWOT ANALYSIS
Strengths
Standardized parts
Knowledgeable workers
Advancement in engineering
development and design.
Pioneer in the manufacture
of a particular internal
combustion engine.
The companys operation in
its engines were largely
special-order jobs.
Weaknesses
Obsolete machines
Made-to-order type of
business
Failure of a piecemeal
manufacturing
Lack of definite sequence of
manufacturing operations for
a given part.
Lack of information regarding
overall manufacturing time
Arbitrary delivery dates by
the sales department
High production cost
Low-level of customer
service.
Failure to use proper lot
sizes, even when lots are not
broken up during
manufacture.
Absence of any record
Opportunities
Location that allows them to
have easy access to the
customer
Customer requires engines
that are made-to-order
The increasing popularity of
diesel engines.
Threats
Many new producing
companies into the field,
with a consequent
tightening of the competitive
situation.
Inordinate number of rush
order
ACA #1:
Implement and organize a more advanced general system for
production control.
ADVANTAGES
DISADVANTAGES
emergency repairs.
ACA #2:
Limit made-to-order orders and instead concentrate to the sale of
standard-line of the agricultural engine
ADVANTAGES
DISADVANTAGES
This will greatly help in the This may result to decline in sales
simplification and standardization
as 60% of the companys sales are
of the production process
generated through made-to-order
engines
ACA #3:
Set an exact delivery time/date for each product.
ADVANTAGES
DISADVANTAGES
This will inhibit any disruption in the This may cause a customer
manufacturing process
dissatisfaction as rush order will
not be allowed
VIII. RECOMMENDATION
Though the engineer recommendation in the study is to have a simple,
straightforward program that would provide adequate control over production and
could be instituted gradually and logically, it still answer it because if we already know
the sequence, we will have an adequate control over the production.
We recommend the first alternative course of action which is to Implement and
organize a more advanced general system for production control. Which have the
goals of the following:
1. Provide world class quality and service to the customer.
2. Develop each employees potential, based on mutual respect, trust and
cooperation.
3. Reduce cost through the elimination of waste and maximize profit
4. Develop flexible production standards based on market demand.
IX. PLAN OF ACTION
ACTIVITY
BUDGET
TIME
FRAME
P8,000.00
A month
P1,000.00
2 weeks
P1,000.00
2 weeks
P2,000.00
2 weeks
P3,000.00
2 weeks
P50,000.0
0
2 weeks
P2,000.00
2 weeks
PERSON
RESPONSIBL
E
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
P1,000.00
2 weeks
P1,000.00
2 weeks
P2,000.00
2 weeks
2 weeks
P5,000.00
Years
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
Manufacturing
Process
Engineering
prior
phases. Above all, make sure that a myopic focus on the system hasnt blinded you
and your staff to the need to deliver improved processes that achieve your business
objectives.
Dont Implement without Them
As you move forward with your implementation, make sure you follow the proven
steps. They have been proven many times in many projects and in many industries,
and theyll continue to lead to success, provided you start and finish every project with
the following must-have components:
> Strong-willed project leader with time and resources;
> Representative project team with time and resources;
> Well-defined list of business objectives;
> Rigorously critiqued list of system requirements;
> Realistic but aggressive timeline;
> Thoroughly documented system procedures;
> Partner that is the right strategic fit with industry, manufacturing, and
system experience; and
> Thorough testing that can uncover any problems and ensure a smooth
kick-off.
X. MANAGEMENT LESSONS LEARNED
1.
2.
3.
4.
5.
6.
7.
8.
9.