Shipper Case Study

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Discussion Questions:

1. What objectives should be adopted in manufacturing with respect to cost, delivery, quality, and flexibility?

Business objective: To reduce but not eliminate APD dependence on short-run customer-specified products or projects and to bring on stream new products with higher-volume continuous production. Materials and systems engineering capabilities will need to be strengthened, as will production engineering and production control disciplines. Concentrate heavily on planning while focusing on strategies.

Manufacturing will need to develop facilities, people, and production control systems to support the change from one product line to another.

Production and inventory control record keeping need to be standardized and made more efficient. Also, the inventory managers will need to decide how much inventory is needed, from raw materials to finished-goods inventories. This will allow the optimal delivery timeframes, flexibility to customer demand, and minimize costs due to over/under stocking.

APD must ensure that quality is designed and built into all stages of producing and delivering goods to customers. By building quality controls into the stages of production, they will be able to minimize excess costs while ensuring that all processes add value to the product.

Additionally, APD will want to determine their manufacturing competitive priorities and competitive capabilities.

2. How should the objectives in manufacturing be achieved through process, organization, equipment, workforce, capacity, scheduling, quality management, and production and inventory control systems?

Standardized procedures for management, organization, data flow, communication, etc. across the Advanced Products Division, particularly in the new product lines. Establish these lines with the procedures in place, and they will become commonplace. Additionally, well-stated managerial and employee organization within the APD, as well as...
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