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Production Management

Essay by   •  May 6, 2012  •  Essay  •  959 Words (4 Pages)  •  775 Views

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Production Management

In my discussion, I will find a solution for the copiers that are in need of repair that are arriving at our facility in various quantities. The distributors are holding the copiers at their location until they do not have any space, and then deliver them to us at one time. There are problems with communications, and, our plant is overcrowded. There is also an issue about repair parts out of control at the Charleston Site. The plan to alleviate these problems is as follows.

Canbide will inform all distributors that we will be using a new electronic system so that we will be able to authorize shipment, track the copiers once they arrive at our facility. With the introduction of the new electronic system, Canbide will be able to generate a numbering system to track the copiers from point of entry to shipping back to the point of origin. The distributors will have to complete a form for each copier in need of repair describing the problem prior to shipping; this will enable the Canbide crew to determine the problem and to ensure that we have the parts required to repair the copier. The new system will allow us to better control how many copiers we receive into the plant, and the distributor will now have "paper work" to do and Canbide can control what will be shipped for repair. This way the turnaround can be quicker.

With further observations, the purchasing department is using an old version of the "Economic Order Quantity system, or EOQ, which is currently causing trust issues with the inventory department. They are double checking every order given to them". To alleviate this problem and gain the trust back, the managers and the purchasing department decided to accept orders from the managers, along with organizing the parts area to prevent ordering unnecessarily. When this is done, the moral in the company will be boosted and it will lower the cost of the labor, the orders are processed faster and the copiers are shipped out faster (.

I, also, noticed that the repair parts are out of control. In order to gain control of the inventory, Canbide need to do an A B C analysis of what is on hand and what is needed to order. The A B C Analysis is categorizing the parts into three groups. "The "A" group is the parts that are the most important and will be used all the time. The "B" group will be used moderately and the "C" group is used the least" (Collier & Evans, 2010). The parts can be put on shelves in this order and alphabetized. These materials can also be embedded with "tiny radio frequency identification (RFID) chips (Collier & Evans, 2010, pg 217). The RFID chip is embedded in the package to easily do inventory by using the RFID reader which scans the chip and identifies its availability of a part. Knowing what is on hand will enable Canbide to reorder parts if need be. Not

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