Module 5 Case Assignment Diagnosis of the Problem and Possible Solutions to the Capa and Order Backlog It has been ascertained that the ExcellentManufacturing Company (EMC) is facing numerous problems. In this regard, one of the major problems, which has been experienced by EMC since last two to three months has been the problem associated with meeting production schedule. At the same time, it has been observed that the backlog of orders in EMC is growing which has arisen many questions regarding the capacity of the machine group (MG).
It has been further recognised that there is high rate of plastic inserts coming from MG 251. Moreover, the moulding dies used in the manufacturing of Plasti-Brack product line were identified to be very old. In addition, it has been observed that few mould cavities were closed due to poor quality which has also contributed towards reducing yield rates from the standard expectations. It is further assessed that more cavities will be closed looking at the age of these dies. Furthermore, frequent breakdown in one of the four moulding machines (M101) has been observed which has stopped the production leading towards increasing the production schedule.
Other three machines are also observed to have minor problems for several times in a week which has also caused low uptime for these machines (Reeder & Mackenzie, 1974). There are two possible solutions to the capacity and order backlog problems. The first solution can be to increase the time available in MLD 251 and reduce the time required to meet weekly demand. Increasing the capacity in MLD 251 can be achieved through adding overtime and by reducing downtime for the machine M101 either by repair or by replacing it with a new machine.
Moreover, reducing the requisite time to meet weekly demand can be achieved by rising production rates of good pieces by cutting scrap production and by growing the number of open cavities in tools. This objective can also be achieved by replacing M101 with new machine (Simon & Newell, 1970). Determination of an Appropriate Plan for Correcting the Problem In order to correct the problem, review of report including production report of MLD 251, scrap report, customer order report, shipping report, assembly report and downtime report of M101 will be duly conducted.
Moreover, calculation of critical information such as calculation and verification of actual demand levels, estimation of reject and yield rates along with calculation of average downtime of M101 will be performed. Moreover, determination of capital spending plan through calculation of increased capacity will also be conducted. At the same time, calculation of capital investment costs as well as determination of budget limitation needed for repairing M101 will be conducted as well. Finally, implementation decisions regarding the various alternatives will be made such as decision to invest in new tools, decision to repair M101 and decision to purchase better quality raw materials among others (Massachusetts Institute of Technology, 2012).
Justification of Plan and Recommendations The above stated plan will assist in identifying the major causes of problems recognised. It will provide specific evidence regarding the specific problem faced by EMC. Moreover, the above plan will facilitate in determining the actions that are needed to be performed in order to deal with the problem effectively. The plan will also facilitate in estimating the potential cost associated with the corrective measures.
It will also help in assessing the likely improvement benefits (Fischer et al. , 2012; Maani & Maharaj, 2001). In order to eliminate the identified problem certain recommendations are being made. Correspondingly, one of the potential goals of EMC should be to reduce the backlog time. In this regard, lowering the backlog time in one department will ultimately result in minimizing the backlog related with unshipped customer orders. It is also recommended to reduce the unshipped customer order queue. It will result in achieving faster shipping along with producing more finished goods.
It is worth mentioning that increase in the finished goods will ultimately lead towards improving the capacity. It is suggested to EMC to reduce the cost associated with material along with scrap cost. Furthermore, tools associated with close cavities should be replaced. It will result in increasing the average cavity pieces per shot. In this regard, tools can be replaced by purchasing new moulding dies at US$25,000 each through available capital budget. Besides, M101 can be replaced with other faster machines at US$250,000 of capital budget.
It will also facilitate in increasing the speed of machine and will optimize scheduling. This in turn will be beneficial for the company as it will enable it to ascertain quality of the provided products in a more prudent manner. References Fischer, A., Greif, S., & Funke, J. (2012). The process of solving complex problems. The Journal of Problem Solving, 4(1), 19-42. Maani, K. E., & Maharaj, V. (2001). Systematic thinking and complex problem solving a theory building empirical study.
The University of Auckland, 1-24. Massachusetts Institute of Technology. (2012). Continuous process improvement. Retrieved from http: //ocw. mit. edu/courses/aeronautics-and-astronautics/16-660j-introduction-to-lean-six-sigma-methods-january-iap-2012/lecture-notes/MIT16_660JIAP12_2-2H. pdf Reeder, W. W., & Mackenzie, S. T. (1974). Problem diagnosis: applying sound theory to problem solving. Journal of Extension, 20-35. Simon, H. A., & Newell, A. (1970). Human problem solving. American Psychologist, 145-160.