Case Study: Spage Age Furniture Co

Order Description Space Age Furniture Company Read “Space Age Furniture Company” in" rel="nofollow">in Chapter 9 of your text. ( Vonderembse, M. A., & White, G. P. (2013). Operations management. San Diego, CA: Bridgepoin" rel="nofollow">int Education, Inc ) Respond to the followin" rel="nofollow">ing and in" rel="nofollow">include any Materials Requirement Plannin" rel="nofollow">ing (MRP) calculations: • Develop an MRP for Space Age Furniture Company usin" rel="nofollow">ing the in" rel="nofollow">information in" rel="nofollow">in the case in" rel="nofollow">includin" rel="nofollow">ing the production of sub-assemblies in" rel="nofollow">in lot sizes of 1,000. • 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" rel="nofollow">in lot sizes of 1,000. • Analyze the trade-off between overtime costs and in" rel="nofollow">inventory costs. • Calculate a new MRP that improves the base MRP. • Compare and contrast the types of production processin" rel="nofollow">ing—job shop, batch, repetitive, or contin" rel="nofollow">inuous—and determin" rel="nofollow">ine which the primary mode of operation is and why. • Describe ways that management can keep track of job status and location durin" rel="nofollow">ing production. • Recommend any changes that might be beneficial to the company and/or add value for the customer. The fin" rel="nofollow">inal case study should in" rel="nofollow">integrate readin" rel="nofollow">ings, scholarly sources, and work and life experiences. It may in" rel="nofollow">include explanation and examples from previous events as well as implications for future applications. The Fin" rel="nofollow">inal Paper: • Must be 11 double-spaced pages in" rel="nofollow">in length (not in" rel="nofollow">includin" rel="nofollow">ing the title and reference pages) and formatted accordin" rel="nofollow">ing to APA style • Must begin" rel="nofollow">in with an in" rel="nofollow">introductory paragraph that has a succin" rel="nofollow">inct thesis statement. • Must address the topic of the paper with critical thought. • Must end with a conclusion that reaffirms your thesis. • Must use at least five scholarly sources. • Must document all sources in" rel="nofollow">in APA style. • Must in" rel="nofollow">include a separate reference page, formatted accordin" rel="nofollow">ing to APA style TEXT: Vonderembse, M. A., & White, G. P. (2013). Operations management. San Diego, CA: Bridgepoin" rel="nofollow">int Education, Inc. *********************************************** CASE STUDY: Space Age Furniture Company The Space Age Furniture Company manufactures tables and cabin" rel="nofollow">inets to hold microwave ovens and portable televisions. These products are made in" rel="nofollow">in various sizes and with various features, but all follow basically the same production and assembly operations. However, two of these products—the Saturn microwave stand and the Gemin" rel="nofollow">ini TV stand—have a part (no. 3079) that requires machin" rel="nofollow">inin" rel="nofollow">ing on a special lathe used only for makin" rel="nofollow">ing that part. At present the machin" rel="nofollow">ine is run by Ed Szewczak, a machin" rel="nofollow">inist who also operates other machin" rel="nofollow">ines in" rel="nofollow">in Space Age's shop. Once set up and started, the lathe can run nearly unattended. However, the machin" rel="nofollow">inist must be present (even if not actually attendin" rel="nofollow">ing the machin" rel="nofollow">ine) any time one of the machin" rel="nofollow">ines, in" rel="nofollow">includin" rel="nofollow">ing the lathe, is in" rel="nofollow">in operation. At present, Ed works a regular 40-hour week. However, due to the workload for producin" rel="nofollow">ing part 3079, it has been necessary to schedule frequent overtime for him in" rel="nofollow">in order to fin" rel="nofollow">inish the necessary parts on time. Coral Snodgrass, operations manager for Space Age, has just heard from Ed's foremen that Ed is becomin" rel="nofollow">ing unhappy about so much overtime. As Coral knows, Ed has been with the company a long time and is an excellent, reliable employee. Skilled machin" rel="nofollow">inists with Ed's experience and employment record are extremely difficult to fin" rel="nofollow">ind. Coral wonders what can be done to alleviate this problem. Recently, Space Age began usin" rel="nofollow">ing an MRP system that has helped reduce in" rel="nofollow">inventories greatly and improve on-time deliveries. In fact, Space Age carries no fin" rel="nofollow">inished-goods in" rel="nofollow">inventory. Instead, everythin" rel="nofollow">ing in" rel="nofollow">in the master schedule is bein" rel="nofollow">ing produced for customer orders, so all products are shipped almost immediately. Previously Space Age had estimated that it cost $1.25 per week to store each Gemin" rel="nofollow">ini and $1.50 per week to store each Saturn that wasn't shipped immediately. The master schedule for producin" rel="nofollow">ing these two items for the next six weeks is shown below. Master Schedule Week 1 2 3 4 5 6 6 Gemin" rel="nofollow">ini 600 400 700 500 400 600 600 Saturn 300 400 400 600 300 300 300 The part in" rel="nofollow">in question, 3079, is used in" rel="nofollow">in two different subassemblies: no. 435, which is used in" rel="nofollow">in the Gemin" rel="nofollow">ini TV stand, and no. 257, which is used in" rel="nofollow">in the Saturn microwave stand. One of part 3079 is used in" rel="nofollow">in each subassembly, and one of each subassembly is used in" rel="nofollow">in each of the fin" rel="nofollow">inal products. Part 3079 may be produced in" rel="nofollow">in any quantity sin" rel="nofollow">ince the lathe that makes it is not used for anythin" rel="nofollow">ing else. However, both of the subassemblies are produced usin" rel="nofollow">ing the same equipment. To min" rel="nofollow">inimize change over time, Space Age has decided that these subassemblies should be made in" rel="nofollow">in min" rel="nofollow">inimum quantities of 1,000 at a time, although there is no problem with capacity on the equipment that makes them. In fact, an order for 1,000 of subassembly 435 is due to be received in" rel="nofollow">in week 1, as is an order for 1,000 of subassembly 257. Lead time for both these subassemblies is one week, and no in" rel="nofollow">inventory is expected to be on hand for either part at the begin" rel="nofollow">innin" rel="nofollow">ing of week 1. There is not any on-hand in" rel="nofollow">inventory of part 3079, and there are no orders in" rel="nofollow">in process. Ed Szewczak earns $22 per hour and gets a 50% premium for any overtime work. Whenever part 3079 is made, there is no set-up time, but processin" rel="nofollow">ing takes 0.03 hour per unit. It costs $0.25 per week to hold any of these parts over from one week to the next. The cost of holdin" rel="nofollow">ing each subassembly in" rel="nofollow">in in" rel="nofollow">inventory is $0.75 per unit per week.