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9
IMPROVING THE FORECASTING AND
PRODUCTION PLANNING PROCESSES
CASE PROBLEM
A major producer/distributor of household electrical
and hardware products suffered from poor customer
service, manufacturing bottlenecks and organizational &
functional
inadequacies.
New
ownership
was
areas,
including
organizational
Brief Summary
A
household
electrical
and
hardware
manufacturing
bottlenecks,
and
other
disappointments
with
financial
performance.
New
II.
Situational Analysis
STRENGTHS
The
major
1.
company
being
a
producer/distributor indicating well-rootedness
2. Immediate response to suffering service
performance
OPPORTUNITIES
1. Market expansion, and increase in sales
2. High chances of putting the organization
forward with greater productivity
WEAKNESSES
1. Manufacturing bottlenecks, poor customer
service,
and
organizational
&
functional
inadequacies
2. Inventory planning was ad-hoc and the
forecasting process was inadequate
THREATS
1. Opportunity losses, loss of sales and loss of
distinctive competency
IV.
Alternative 1
ABC Item Classification,
Customer Segmentation, and
Inventory Analysis
PROS
Alternative 2
Implement a much appropriate
layout
PROS
V.
1. Elimination
of
manufacturing bottlenecks
in relation to the existing
production facility layout
2. Process improvements and
a more balanced production
line
3. Easier
and
better
supervision and may reduce
unnecessary handling
CONS
1. It
requires
great
investment of time and
money
2. Time
required
for
adaption to changes in
the layout
3. May threaten efficiency of
firm
on
the
implementation phase
Recommendation
will
strengthen
relationship
between
various
departments.
chosen
alternative
and
recommendations
should
be
meeting
with
the
opening
possible
discussion
decisions
solutions
Presenting
the
for
and Lean Thinking
chosen
alternative
Settlement and finalization of
decision
Implementation
of
the
basic
management
FMEA
Basic
Manageme
nt
Functions