BUS 644 Week 6 Final Paper Space Age Furniture Problem

University Name

Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include any
Materials Requirement Planning (MRP) calculations:
a. Develop an MRP for Space Age Furniture Company using the information in the case including
the production of sub-assemblies in lot sizes of 1,000.
b. The lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079. Suggest
ways for improvements over sub-assemblies in lot sizes of 1,000.
c. Analyze the trade-off between overtime costs and inventory costs.
d. Calculate a new MRP that improves the base MRP.
e. Compare and contrast the types of production processing—job shop, batch, repetitive, or
continuous—and determine which the primary mode of operation is and why.
f. Describe ways that management can keep track of job status and location during production.
g. Recommend any changes that might be beneficial to the company and/or add value for the
custome

Abstract

The Space Age Furniture Company appropriated a requisition of 1000 Gemini furniture pieces

and an alternate for 1000 Saturn furniture pieces. The unit that will generate they said units is

equipped for gathering the handling of the requested products, however the quandary is the

accessibility of a gifted worker who can proficiently work the extraordinary machine required in

the processing of a particular part to finish an unit. The main mechanic of the organization can

prepare 30 bits of said part in a hour, 240 pieces in a general 8 hour work day, or what added up

to 1,200 pieces in a 5 working days for every week. Anyhow to take care of the demand of the

customer for a particular date of conveyance, 2,000 units must be made in one week. Ed, the
main gifted machine admin is hesitant to work more extra minutes. In this way, the furniture

organization is confronted with the issue of conveying the requested units asked for by the

customer on a particular date and influencing Ed to work additional minutes throughout the

whole weeks of processing. The organization has one week lead opportunity to transform both

requested items.

Space Age Furniture Problem

Struggling to meet the client satisfaction, by effectively balancing production of goods

with employee contentment is always a problem to producers of goods. Take the case of Space

Age Furniture Company. The company has only one machine operator who can operate the

special lathe that will produce part number 3079 needed in the completion of both Genesis 425

and Saturn 257, part 3079 is essential in the production of both commissioned products. But this

essential part is only produced by the special lathe which only Ed can skillfully operate. With Ed
opting to work the regular shift, 8 hours in five regular working days, only 1,200 pieces will be

made in a week. But with the higher demand for the products and the time element included in

the order, more of part 3079 must be produced per day which would translate to overtime work

for Ed, if he agrees to it. Hiring another machinist to take over the production after Ed’s shift

ends, may yet solve the problem but the special lathe requires a highly skilled operator like Ed,

to work it efficiently, and not a lot of Ed’s caliber can be immediately hired to do the work.

Another alternative is a training anew operator, but that will not be good option, considering that

the new recruit may not turn out to be as skilled as Ed.

“With Coral, the operations manager of the company is tasked to address the problem of

solving the timely and efficient production of the specific part without the burden of overtime to

the only available operator of the lathe” (Gallego G, 2011)

Detailed study of demand must be studied comprehensively, that is, in the total of 2,000 units of

part 3,079 that must be produced to meet both orders, 1,000 sub-assemblies is for Saturn 257 and

the other 1,000 sub-assemblies is for Genesis 435.

Every assembly unit is generated by Ed at pretty nearly 0.03 hours, or an unit at regular intervals,

30 gathering units each hour, in an eight hours shift 240 units, so in 5 days and with a 8 hours

shift a day, 1200 sub get together units will be processed in a week. Ed, the engineer, supposes

whatever he can process is the greatest 1200 sub gathering parts for the week, in any case, 2000

parts or an overabundance of 800 sub get together parts must be processed without much fanfare,

which implies that 26.6 hours of extra minutes work must be rendered to take care of the demand

of the employment request.

 The organization has an one week lead opportunity to transform the requested furniture,

so what the operations chief needs to do is let Ed produce the greatest number of the

aforementioned parts without doing extra time work expecting that the organization has not yet

accepted the requests. The prepared parts might then be the organization's stock that might be

instantly accessible when the requisitions come in, and no extra minutes work was rendered. This

method is known as a smoothed handling organization, wherein the required sub gathering part

for Genesis 425 and Saturn 257 was transformed without extra minutes prerequisite.

“The smooth handling configuration or all the more normally regarded as the stable arrangement

is utilized by operations director when interest for the generation of products is stable or

constant. This process decreases presentations take indeed, when the operation is nonstop.”

(Vonderembse M, 2013)

The organization now has a load of sub gathering part 3079 to be utilized as a part of the

generation of Genesis 425 and Saturn 257 when the requests come in without the extra

processing cost of extra minutes work for Ed. Anyhow the issue created when stable

arrangement was utilized by the operations director, is space of these surplus items.

“Inventories of supplied materials to take care of the demand when the employment requests

begin to come in, methods additional expenditures in occasion or space costs. This procedure

will just be suitable if the space expense is negligible.” ( Y. Zheng, 1991)

Another point of interest Coral saw when the stable arrangement was utilized, aside from

cutting generation cost, is safeguarding on additional time pay. With the finalized item saved at $

0.25 an unit for every week, it might take the organization $300 for the week the parts were
fulfilled and archived without yet the customers' requests. Ed is paid $22/ hour in his consistent

shift and an extra $33 for every hour provided that he selected to work additional time. To

generate the 2000 parts for the week the requests came in, Ed will be paid about $880 for the

26.6 hours extra time required to process the sum sub get together parts. By disposing of the

additional time element and selecting to stock the surplus materials, the organization can recover

about $480. By using the creation smoothing arrange, Coral was ready to cut the generation

require and killed the conceivable outcomes if Ed declined extra time work.

An alternate choice that Coral may utilize to tackle the creation issue is employing an

alternate talented machine driver. In this situation, there might additionally be no extra minutes

required, generation might be part in two movements and no space of fulfilled items, that is, if

the organization selected to begin processing once the true requests come in. Anyway recall, just

26.6 extra hours of generation is wanted to finish the 2000 sub gathering required in the

production of the furniture, so the additional hours the second movement driver will have must

be loaded with extra identified work for the occupation and a compensation of $880 a week to be

boosted. This possibly disadvantageous to the organization from the beginning however in the

long run, paying the compensation of a second mechanical engineer may take the same as the

expense of space if the requests don't come in obviously.

The ace calendar of creation must be adaptable to oblige updates. To take care of

customer demand, customary creations possibly planned in a prior period with overabundance

limit, or take the elective additional time. Provided that these alternatives demonstrated futile,

more progressions must be acknowledged to the expert plan.

 one more choice that perhaps acknowledged genuinely is diminishing the greatest

number of creation sub gathering parts 3079. This move will even now have a great impact on

the by and large processing of the requested items and on the machine admin's fulfillment

moreover. Space Age Furniture selected to lessen their processing of the said part at 1000 units

at once. Accompanying this alternative, 600 units of the sub gathering part will be handled for

every week, close to the synthesis of the definitive 1200 units for every week. This method will

even now take care of preparation demand in the meantime minimize extra time hours. Space

cost of stocked parts will likewise be diminished. This choice will even now supplement the

creation smoothing arrange received by the operations director.

“Storing surplus units can require progressively to the organization and easier its benefits,

making the cost of the completed items less aggressive or disadvantageous to the customers

dispatched its processing.” (H Arslan, 1999). The table beneath shows he expenses of surplus

things saved in a six weeks period.

As specified prior, the expense of space for part 3079 is $0.25 for every unit in an one

week period. The space cost of sub gathering 435 and 257 is at $0.75 every for every unit/ week.

A Genesis completed item will be saved at $1.25 for every unit/week while a Saturn finalized

items' space expense is peg at $1.50 unit/week. Underneath is the expert plan table of

arrangement for six weeks. It demonstrates the amount of each one completed units (Saturn and

Gemini) for every week, space take for each one finalized unit and all out generation require for

every week and the expense of saving of part 3079 and every sub assembly.
Table 1

Item Week 1 Week 2 Week 3 Week 4 Week5 Week 6

Gemini 600 400 700 500 400 600 3200
Storage @ $750 $500 $875 $625 $500 $750

$1.25/week
Saturn 300 400 400 600 300 300 2300
Storage @ $450 $600 $600 $900 $450 $450

$1.50/week
Total 3079 900 800 1100 1100 700 900 5500
Storage @ $225 $200 $275 $275 $175 $225

$0.25/week
Storage for Sub $675 $600 $825 $825 $393.75 $675

435 and 257@

$0.75/unit/week

You might notice thattable didn’t show storage cost for 1st week. The storage fee

reflected in second week then onwards. So this is now because of assumption that the units were

stored at end of first week of production. These two units will beqqqqunits will be stored until

the production of the projected 1000 units is completed, then the products will be released for

shipment.

Table 2 will show a fixed production capacity per week, in a six week production period

will come up with the same total output, when production smoothing plan is utilized.

Table 2

Item Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Totals

Gemini 533 533 533 533 533 533 3198
Saturn 383 383 383 383 383 383 2298
3079 916 916 916 916 916 916 5496
AS demonstrated by Table 1, space cost for every unit of fulfilled thing is more costly than

archiving sub-congregations. For a time of six weeks, $4000 was paid for 1000 units of finalized

Gemini furniture and $3450 for an alternate 1000 units of Saturn furniture. The sum space take

for units of both furniture models is $7450. Then again, absolute space cost of sub gathering

parts for both furniture displays likewise in a six week period is $4125. Provided that the

organization picks extra time work to transform the 2000 units sub get together part required to

finish units of both furniture models, $5280 must be distributed in the plan. That is $880

increased in a six-week creation period. Thinking about all these figures extra time is an

improved choice than space of completed item. Be that as it may most importantly these expense

cutting choices is cutting benefit misfortune by saving sub-gatherings in light of the fact that that

will take less than extra minutes and space of completed item alternatives.

another process that an operations chief can acclimate is the supposed stream shop

booking. Things required in the preparation of merchandise must be prepared and nearby all

through the whole creation prepare. In spite of the fact that Ed is a talented mechanic, he can just

generate a predetermined number of wanted part for both furniture models, 435 and 257. The

extraordinary machine can just think of one and only unit for like clockwork and Ed must be

nearby to administer it. A talented mechanic who will work the supplies the gear to process the

essential part, these are extremely imperative parts to make the processing stream easily and

proficiently. "Uninterrupted stream shop planning issues limit a critical class of sequencing

inconveniences in the region of preparation arranging. The issue respected here is to discover a

supplanting of employments to be transformed back to back on various machines under the

constraint that the handling of every employment must be uninterrupted with connection to the

point of minimizing the whole transforming time (stream time)" (Andres Fink, 2001)

To productively run a processing line from work observing and finding glitches, an expert plan

must be strictly accompanied. The processing administrator can stay informed concerning the

whole handling courses of action; check the accessibility of gear and parts and supplies required

in the enduring stream of work by checking the preparation plan arrange consistently. Not just

plan reflects what is precisely to be transformed, however it should additionally be facilitated

with the bargains and promoting of the item that must be acknowledged through processing.

a set of arrangement must additionally be planned that will concentrate on the stream of

work and verify that processing takes care of the demand of customers on time. This set of

arrangement is otherwise called total arrange put up by the entire preparation assemble on a

month to month premise to figure what might be their yield. Incorporated in the arrangement are

information on essential choices about creation and operation which incorporates preparing

contracts for materials, representative enlisting and preparing, and ordering materials, stocks, and

finalized items.

information on item guarantee, materials utilized within the item and other identified data must

be given by the organization to the customer additionally to the retail client or purchaser of the

final item. This is an affirmation that the item they are purchasing is of high caliber and worth

their cash. Customers might likewise be encouraged to gain entrance to the web on the

organization's site for extra data.

storage of finalized item set aside a few minutes, will be beneficial to the organization in light of

the fact that once the request comes in, final item might be instantly sent or conveyed to the

customer, which will interpret to client fulfillment of the products and also the administration.

References

Andreas Fink, S. V. (2001, January 31). Solving the Continuous Flow-Shop Scheduling Problem.

Citeseerx: http://citeseerx.ist.psu.edu/messages/downloadsexceeded.html

Gallego, G. (2011, October 9). Columbia.edu. columbia.edu:

http://www.columbia.edu/~gmg2/4000/pdf/lect_05.pdf

Vonderembse, M. &. (2013). Operations Management. San Diego: Bridgepoint Education, Inc. .

H. Arslan, H. Ayhan, and T. L. Olsen., Analytic Models for When and How to Expedite in

Make-to-Order Systems, accepted, IIE Transactions, (1999)

Y. Zheng, A Simple Proof for Optimality of (s,S) Policies in Infinite-Horizon

Inventory Systems, Journal of Applied Probability, 28, pp 802-810, (1991)