The National Cranberry Corp. Case Study
What are the problems affecting the NCC?
These problems originate basically from the bottleneck process of the company production line, and the badly work schedule established for the processing division which drives the highly costs in overtime. Normally a truck had to wait for several hours before they unload their cargo, due to the small capacity of the company’s holding bins. To add to this problem the company lacks of a storage area; therefore, forcing the trucks and drivers to wait until the holding bins were empty out. Consequently, making the production process inefficient and costly in terms of labor hour, where overtime costs are very high.
As mentioned it before, the problem s with the trucks starts with bottleneck step of the entire process line, which is caused by the lower volume that the dryers can hold in any giving time. The waiting line is also caused by the time that the processing department starts its work day (11 AM), which two hours after the delivery departments starts is working.
Because the holding bins step isn’t the bottleneck of the production process. What is holding up the trucks is the small capacity of the dryers as well as the time that the processing department starts working; which is four hours after the receiving division. Therefore, those truckers that are at the end of the line have to wait until all the load from those first trucks has been trough the dryers. Consequently, in order to reduce the waiting time or the trucker’s two things ought to happen. First, the processing department should start work at the same time as the receiving department. Second, one extra dryer should be acquire in order to reduce holding time and to speed the process, based on the case the dryers are one of the causes of the waiting time and not the holding bins.
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