Operations Thicketwood Ltd Problem Statement

The present manufacturing course of that Thicketwood Ltd is using can not maintain with the demand for customized kitchen cupboards. Administration should implement a brand new step to the manufacturing line to extend effectivity; nevertheless, they have to additionally keep high quality as the shoppers which might be buying these cupboards anticipate fine quality for the amount of cash they're paying. Issues/Sub issues/Points Within the Thicketwood Ltd case, there are a couple of issues and points that have to be addressed instantly as a way to sustain with demand. The present course of that includes strictly human labor is not environment friendly because the demand for cupboards continues to extend. The present course of has 5 steps which embrace reducing, drilling, routing, assembling, and ending the cupboards. The third step on this course of takes the longest period of time to finish and in addition has the best variety of workers engaged on it. This step causes a bottleneck and every thing is changing into backed up at this stage. Administration must implement a change as a way to attempt to change into extra environment friendly and meet demand but in addition proceed to make high quality cupboards. The corporate has come throughout an choice that they imagine will eradicate the bottleneck and permit the availability to satisfy demand. The choice the corporate believes could be essentially the most helpful is a Pc Numeric Managed (CNC) router. The choice that have to be made is both to buy the brand new machine or the outdated machine. Every machine has a special worth and totally different life expectancy. By buying and implementing this machine to the manufacturing course of it might additionally eradicate jobs on the manufacturing line, which can end in workers being transferred to totally different areas or could trigger some layoffs which in consequence can have a adverse influence on the connection between staff and administration which is presently superb because of wages and advantages and there have been only a few layoffs previously. Evaluation For Thicketwood Ltd, the standard of their cupboards is an important facet. Their goal market is people or households of upper revenue which might be keen to spend extra money on a specialty product which is the customized kitchen cupboards. When persons are out purchasing for customized merchandise, worth is usually not of massive concern compared to high quality and repair. Thicketwood Ltd wants to make sure high quality, be certain that their service is top-notch, be certain that the amount of cupboards produced meets the forecasted demand for that, and lastly, worth. As beforehand said, the present system that the corporate makes use of contains 5 steps and all of the steps are carried out by hand. Though performing by hand is an effective means to make sure high quality, human labor can not sustain with the forecasted demand in all 5 steps. The present course of is as follows: (Per Cupboard) Step 1: (1 worker) four cuts per half X 3feet per lower X 20 elements = 240/10ft per minute = 24min. Step 2: (1 worker) 60 holes per cupboard X 1. 2 minutes per gap = 72min. Step three: (four workers) four workers routing 1 half every of the four required elements = 96min. Step four: (1 worker) 1 employee assembling 1 cupboard = 90min. Step 5: (2 workers) 2 workers end the cupboard = 20min. With this present course of, Thicketwood Ltd can not attain the forecasted demand of 2000 cupboards per 12 months in all classes. Even when the corporate was working at 100 % effectivity, because of the bottleneck in step three, the utmost quantity of cupboards that may be produced in a single 12 months is 1250. 60/96 = zero. 625 X Eight-hour shift X 5 days every week X 50 weeks a 12 months = 1250 per 12 months Nevertheless, we can not make the idea that the corporate is working at 100 % effectivity as the workers want time to stroll round and arrange. To maintain issues extra reasonable we'll calculate at 90% effectivity as effectively. Step three is just not the one step that can't produce 2000 cupboards a 12 months. Listed here are the present numbers when the corporate is working at 100 % effectivity and 90 % effectivity: Desk 1. 1 - # of workers Effectivity Per Shift Per Yr Step 1(24 minutes) 1 100%
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