Optimization Of Machine Utilization And Quality Management Case Study
The scarcity of resources, time, ease of implementation and costs has always been a major bottleneck for firms as far as production is concerned. So is the case for SPC GmbH. Therefore, for it to ensure a timely and a sufficient supply of masterbatches to its customers, we will be suggesting theoretically possible means to increase production capacity, evaluate them qualitatively, then try to adjust them to SPC’s case. The flowchart in figure 1 depicts a logical tree on how to increase capacity in a firm:
Optimization of Machine Utilization
• Reduce Equipment Loss by setting monitors that track machines’ input to make sure it runs at its ultimate capacity. The basic idea is to input a valid reason for the machine to run below full capacity, otherwise, …show more content…
It is costly to maintain equipment and to pay for the team in charge of it, but it is fundamental to achieving a higher efficiency on a continuum.
• Reduce Return Rate: Quality control is the key to solving defects through inspections, total quality management (TQM) or the Six Sigma approach. As we assume that there are no reworks in the masterbatches industry, these methods should be used to avoid errors that imply having to reproduce over again. It is indeed costly and its implementation is complex, but has long-term benefits on the overall capacity.
2. Adding equipment by buying or renting it. Even though it sounds evident to include additional machines to increase capacity, this option is not highly advisable. It is costly because new equipment requires high investments, maintenance, space to be allocated in and the adjustment of employees to properly use it.
3. Outsourcing: this option allows both management and employees to focus on the core activities of the firm, and allocate additional tasks to a third party to free capacity. However, managers should still do inspections to keep the outsourced tasks under
Optimization of Machine Utilization
• Reduce Equipment Loss by setting monitors that track machines’ input to make sure it runs at its ultimate capacity. The basic idea is to input a valid reason for the machine to run below full capacity, otherwise, …show more content…
It is costly to maintain equipment and to pay for the team in charge of it, but it is fundamental to achieving a higher efficiency on a continuum.
• Reduce Return Rate: Quality control is the key to solving defects through inspections, total quality management (TQM) or the Six Sigma approach. As we assume that there are no reworks in the masterbatches industry, these methods should be used to avoid errors that imply having to reproduce over again. It is indeed costly and its implementation is complex, but has long-term benefits on the overall capacity.
2. Adding equipment by buying or renting it. Even though it sounds evident to include additional machines to increase capacity, this option is not highly advisable. It is costly because new equipment requires high investments, maintenance, space to be allocated in and the adjustment of employees to properly use it.
3. Outsourcing: this option allows both management and employees to focus on the core activities of the firm, and allocate additional tasks to a third party to free capacity. However, managers should still do inspections to keep the outsourced tasks under