Maxi-TV Case Case Study Examples

- Based on the forecast consumption and resulting MDS, it can be concluded that the sales team were able to progress very well in terms of acquiring more orders particularly on the Standard HD TV model P/N 1000. It appears that the aggregated 2013 forecast for both July and August were not able to reach when compared with the booked sales order. For example, the 5 –week forecast for July is 4,725, which is a combined total of 54% PN 1000 and 46% PN1001 appeared to have a supposed average order target of 925 per week. However, the combined book sales orders for July week 1 are only 800 units, which is only 86.5% of the averaged week 1 forecast. Despite of the short of target in Week 1, the sales team was able to surpass the targets in Week 2 to Week 4. The booked sales sums up to 4,370 for the whole month of July, which is five units or 0.11% over than the aggregated forecast. As the head of the sales division, the main concern is to increase efforts on increasing sales of PN1001 model, which are 620 units lower than PN 1000 model. This shortcoming translates to 23.62% decline in sales for PN 1001 that the sales team should focus on improving in all weeks of the month.
- Maxi-TV’s preliminary capacity appears to be insufficient based on the daily production capacity requirement. According to the master demand schedule, week 1 needs 500 units of PN 1000 to be produced and 300 units of PN 1001. To compare that with MDS, the daily average units that need to be produced is 12.5 in 8 hours of labor for PN 1000, but since the labor resource available is 16 divided between PN 1000 and PN 1001, therefore PN 1000 will have eight available labor resources. Each of the eight-labor force has eight hours of labor to render. Therefore eight laborers multiplied by eight hours will render 64 hours of total labor. Since the daily average production requirement for PN 1000 is (week 1:week 5 / 5days a week / 8 hours a day = 68.75 average units) 68.75 units, therefore the available labor hours would not be sufficient to meet the daily production requirement. The situation here is that the total demand for PN 1000 overwhelms the available labor resources that the final assembly has. PN 1001 on the other hand has lesser demand and requires less labor time in the assembly line and with the given labor resources available, the final assembly line would be able to meet the production requirement for PN 1001. The machine resources on the other hand are sufficient enough to meet the production requirement for both models. Therefore, the only problem that the Final Assembly department needs to address is the lack of labor resources needed to meet the demand for PN 1000.
- Given the situation identified in Part 2 the action needed to resolve the problem is to transfer the excess labor resources allotted for PN 1001. It can be recalled that PN 1001 has an average daily production requirement of 52.5 units and given the equal amount of labor resources provided to PN 1001, it also has a total of 64 available labor hours. Having said that, there is an excess of 11.5 hours for PN 1001. However, PN 1000 is only short of 4.75 labor hours. Therefore, transferring one laborer from the PN 1001 line to PN 1000 line is enough to resolve the problem in shortage of labor resources for PN 1000 and to meet the averaged daily production requirement based on MDS.
- Increasing the order size of Part#3400 to a multiple of 1,500 constitutes a very minimal benefit on cost. Given the total cost per lot of 1,500 ($750 per week X 4 weeks = $3,000 holding cost + $75 order cost), each order would cost the company $3,075 per lot of 1,500. If the company decided to increase the order to a multiple of 3 lots of 1,500 the cost will also be multiplied into three as well except the order cost, which will remain $75 dollars because there is only one order made. The only difference is that the single order is consist of multiple lots, which will affect only the holding cost. In the end, the decision to order in multiple lots of 1,500 will save the company $75 as compared to making separate orders.
- In terms of capacity requirement and materials requirement, it appears that the materials at hand and in the inventory for both models would not be able to meet the capacity needed to produce the needed units indicated in the MDS considering the lead time for the parts to be delivered. For example, week 1 needs a total of 500 units of PN 1000 combining the safety stock and beginning inventory of top assembly, the available materials will only be 200, which is 300 pieces short. The lead-time of 1 week for deliver will delay the assembly of the remaining units, unless the lead-time will be reduced or to be delivered immediately.
- Comparing Part 2 CRP and RCCP in Part 4 entails similar results. The capacity requirement as discussed earlier is short of labor resources, when compared to Part 4, it appears that they both have the same problem encountered, but given the production requirements of each unit. The capacity can be improved following the recommendation given in question#3.
- Given the situation in Part 2 and 4, the only solution is to distribute the resources according to the capacity requirement of each model. For example, labor resources might be lacking in one model, therefore, it the excess resources from one model must be used to compensate the shortage in the other model. The same goes with the materials and other resources. Some of the materials used in PN 1000 are similar to the materials required for PN 1001. Since shortages are apparent in PN 1000, the excess from PN 1011 should be transferred to PN 1000 for utilization.
- The system assembly department appears to have difficulties keeping up with the required resources given the target number of units indicated in the demand and capacity assessment. However, the labor resources and machine resources in Department B is more than enough to sustain the capacity requirement of both models. Therefore, the only problem is the number of available materials in order to meet the target. The main solution to this problem is to decrease the lead-time and ensure that the materials are already at hand before the next following week of production.