OMM Case Study Essay Example
OMM Case Study Essay Example

OMM Case Study Essay Example

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  • Pages: 8 (2005 words)
  • Published: May 14, 2018
  • Type: Paper
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The lack of communication within the production department has caused delays in production and affected delivery times, leading to customer dissatisfaction and potential loss of market share. Inaccurate recording of parts taken out of inventory has led to discrepancies between physical stocks and recorded inventory. The hoarding of critical parts by certain production lines has further exacerbated these issues. To address these concerns, the entire department should hold a meeting to understand company goals.

To prevent such issues in the future, sales persons will conduct quarterly market surveys to provide feedback on customer demand. Using this information, monthly sales forecasts will be provided to all departments. Weekly sales meetings will be held with sales persons, customer service, procurement, logistics, and production to discuss market demand and create demand schedules for each quarter and month

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of the upcoming year. By reducing inventory through proper scheduling and Just-in-Time delivery of critical parts, purchasing can negotiate better deals with suppliers.

The purchasing department will utilize inventory tracking system tools to forecast sales and prevent theft of parts by staff or customers. Multiple inventory options are available to best suit each business's needs.

Different businesses use different inventory tracking systems that need to be flexible and suited to their nature and budget. A store inventory policy can limit employee access and record all withdrawals. To further secure the inventory, security cameras and key access cards can be implemented. Bar code scanning is a recommended option, where each part is scanned manually with a handheld unit. This scanner comes with a software program to generate inventory reports instantly. RFID uses radio waves to track and store information about products in

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tags, which can be identified instantly by a reader using sound waves.This sound wave reader has an excellent function that can scan multiple parts simultaneously and allows us to keep them on shelves without moving them, unlike bar codes. It eliminates the need to physically scan each part, speeding up inventory processes. RIFF technology provides complete reading of parts from inventory history and enables total asset visibility, reducing shelf space and errors while indirectly lowering operational costs. Although costly, it offers an easier and faster way for inventory control. Creating a community for departmental meetings can identify problems and find solutions to resolve issues, coupled with daily production line meetings aiming to control waste parts. Implementing systematic parts withdrawal and replenishment in the production line is also crucial. A notification system alerts employees when inventory items reach the maximum stock level or re-order point, triggered by considering the item's current demand and lead time. Implementing the BBC inventory analysis categorizes items into three groups based on total annual revenue: "A" items account for 80% of dollar value, "B" items account for 15% of dollar value, and "C" items account for 5% of dollar value.This text contains references to various sources related to inventory management and a case study of process mapping in a manufacturing setting. The Economic Order Quantity (EOQ) model for inventory management and BBC analysis are both mentioned as resources for implementing effective inventory control systems. Additional resources include articles on Inventory Management Implementation and Setting Up an Inventory Control System.

The case study discusses the use of process mapping and time measurements in minutes to ensure successful repair of devices. When everything

goes smoothly, it takes 6110 minutes to complete an order according to the process flow. However, if the order fails, the technician must repeat the process, starting with diagnostics and disassembly before testing the device and proceeding as usual. The total time necessary for successful device repair, from the work order until completion, is 12145 minutes.

Finally, the text mentions Value Stream Mapping (VSM) as a lean manufacturing technique used for analyzing and designing the flow of materials and information required for delivering products and services to customers.The activity of value added involves improving the efficiency of repairing a product within a short time frame, while simultaneously meeting customer expectations and ensuring their satisfaction. Conversely, non value added activities such as the transfer of materials between nonadjacent workstations, overproduction, waiting for service or work to do, incorrect work on the first attempt, and requiring multiple approvals for low-cost electronic transactions are unbeneficial. Referencing Figure 1, the percentage of value-add and non-value-add time was calculated for Scenario A (assuming the work is successful on the first attempt) and Scenario B (if the device requires repair). The analysis indicated that the time spent in non-value added activities wasted a considerable amount of repair time. To improve product quality, reduce wait times, meet customer expectations, build customer trust, and lower the number of products needing repair, value stream mapping is a critical tool for waste reduction and process improvement.The key to any process improvement is to have a clear understanding of current performance in order to generate effective ideas for minimizing time waste. One recommendation for achieving this is to increase revenue by improving the efficiency of producing high-quality

goods and services that align with the customers' benefit package. This can be done by increasing agility and responding promptly to changes in customer demand and expectations. Additionally, reducing defects, mistakes, and failures in product and service quality can improve customer satisfaction, while decreasing costs by utilizing better technology or eliminating non-value-added activities. To expedite the process flow time, waiting time should be minimized and processes should be sped up. The essential concept of lean thinking is continuous flow, which involves the smooth movement of goods through each process step without delay and reduces waste. The future map will show the previous process box tied together as a single process box unless each box has its own separate flow that stops before another begins. Nonetheless, continuous flow may not apply to all situations due to long lead times or difficulty combining certain processes with goods at subsequent stages. Finally, Toyota introduced the Just-in-Time system half a century ago.The traditional factory utilizes a push system, which involves producing finished goods ahead of customer demand using sales forecasts. The operating system relies on preset schedules, irrespective of actual customer demand, resulting in high WIPE inventories due to long setup times and large batch sizes. In contrast, a pull system involves employees at each operation withdrawing required components from the source as needed. Through synchronizing the entire manufacturing process with the final assemble schedule, finished goods are produced in line with customer demand, leading to minimal inventories and maximum responsiveness. FIFO is another management process used for continuous flow activities, providing the best estimate for variance in cycle time. In case of breakdowns, organizing the flow according to

FIFO maximizes downstream flow, especially in dealing with bottlenecks. Implementing a queuing system to operate FIFO should ensure efficiency throughout the process.The process of beveled scheduling aims to operate at the lowest possible common level, minimizing waste between stages. However, its effectiveness is dependent on other aspects of lean thinking being in place. Figure 2 shows the results of implementing process mapping, which decreased non-value-adds time and recalculated the share of value-adds and non-value-adds time for each scenario. After implementation, Scenario A assumed everything worked the first time, while Scenario B involved a second repair. To further minimize waste and speed up the process, it is recommended to set up more service centers and allocate them in the main plant. This would reduce waiting time for technicians and parts received, resulting in an improvement of 17.75%, an increase in value-adds to 22.14%, and a total saving time of 4800 minutes (80 hours).The following sources were accessed on September 10, 2013: Org/ WAIS/alee_stream_mapping, which pertains to Value Stream Mapping; http://move.Institute.Nash.UK/quality_and_service_improvement_tools/quality_and_service_improvement_tools/process_mapping_-_value_stream_mapping.HTML, which discusses process mapping and value stream mapping; and http://en.Wisped.Org/wick/just_in_time_(business), which provides information on Just in Time (business). This case study pertains to Hank Kola, a newly hired director of quality assurance who is facing challenges with management lacking policies and visible support for quality matters in the Greaser line production plant, which specializes in producing a decreasing solvent packed in a spray can for the high-technology sector. The filling process is carried out by operators who are often new or transferred from other departments without proper training on the equipment. Safety training is also lacking, putting operators at risk while handling the high-pressure machine. During

Mac's inspection, he found that there was no operator present when the high-pressure can was being tested, and the operators were only trained by an inexperienced or unskilled operator on how to reject defective cans from the machine during their shift under Wayne's leadership.The machine used to produce Greaser products was not specifically designed for this purpose and was purchased two years ago for other production lines. Although the machine was switched to run Greaser line six months ago, only 12 work orders have been completed due to several issues. One of the problems is the absence of scheduled preventive maintenance for filling equipment, leading to downtime that accounts for 15% of actual production running time. Another issue is the lack of product tractability and lower viscosity caused by the absence of equipment maintenance. Additionally, the plastic nozzles used for Greaser are a new product ordered urgently from a vendor, who found burrs inside the rim causing difficulty when fitting the top of the can. To overcome this issue, they are now increasing the application of pressure at the filling dead to force the nozzle head to fit on the burrs. Poor communication and a lack of purchasing in the purchasing department also contribute to these issues. Meanwhile, marketing research shows that there is a need to compete with other designs for Greaser that are easy to handle by users. However, there has been no test on how the new design would affect filling speed or filling hydrodynamics from the high-pressure filling head. Kola also discovered that the new design parts do not meet the requirements for design and packaging along the entire Greaser line.The

production line's efficiency can be adversely affected by substandard parts and poor design. The manufacturing manager is tasked with finding ways to boost productivity, decrease delivery times, and reduce costs. He is considering promoting Simmons to shift supervisor. A statement like "even if it is a little off spec was tolerable, we need market share now" demonstrates a disregard for quality, and meeting the schedule is prioritized. Marketing is hurrying to launch the Greaser and promote it to attract customers. However, poor market forecasting and planning resulted in the production line's inability to meet the high demand and fulfill back orders. Kola collected information from each department and used a Fishbone diagram to address the Greaser line's quality control issue. To establish a continuous improvement program, Kola must identify issues and analyze the quality control in human attitudes and skills. Kola launches an awareness campaign to educate employees on the importance of high-quality processes and the costs of poor quality processes in the company's business.Kola desires that every employee has both a positive attitude and the ability to find the optimal solution in order to help the company attain its goals. To enable every employee to participate in resolving any issues, Kola provides them with various resources such as suggestion boxes, seminars, and training sessions to brainstorm potential solutions within the workplace. It is recommended that Kola incorporates Six Sigma as one of the tools for continuous improvement in the plant. Six Sigma is a set of methods and strategies for process improvement in businesses aimed at optimizing process output quality by identifying, eradicating errors, and minimizing variability in manufacturing and business processes. There are

two project methodologies followed during Six Sigma projects, dynamic(DMAIC) and ADMAN. DMAIC is a data-driven improvement cycle that helps to improve, optimize, and stabilize business processes and design. ADMAN is a tool utilized for projects aimed at developing new product or process design.

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