Shipper Manufacturing Company
In order to apply the new advanced strategy, the company is concerned about cost, delivery, quality and flexibility. Thus, the company will need to adopt new objectives: to shift from low-volume to high-volume production , and from the custom designed product to the high quality manufacturing designed product. 1. 1 . What objectives should be adopted in manufacturing with respect to cost, livery, quality and flexibility.
Cost – With the old strategy, ADAPT produced products on demand which meet the customers requirements, so it was able to pass its high cost to customers by charging high prices. The new business strategy will not allow ADAPT to do the same thing. Producing concurring high-volume products will increase Tap’s competitors. As the new market Is more competitive, ADAPT will have the pressure the reduce Its prices In order to Increase sales. As a result of lower prices, the Dillon needs to focus on reducing cost to generate the desired profit.
Delivery – Due to the more competitive market, ADAPT has to improve its delivery system to provide better services and attract new customers.
The Division needs to reduce the delivery time down and better manage inventories to predict inventory needs. A new automatic system of delivery control and inventory control is suggested to replace the current manual system. In addition, The Division needs to set delivery time objectives. Quality – The Division should maintain its strong commitment to quality which will give them a competitive advantage in the new market.
Flexibility – Since ADAPT decides to change from on-demand product production to concurring high-volume product production, It reduces Its flexibility In meeting customer’s demand.
However, flexibility relates to time improvements. By improving time, the PAD could potentially have time to make more products a year. Thus if customer requirements change, they can quickly be accommodated. 1. 2.
How should the objectives in manufacturing be achieved through process, organization, equipment, workforce, capacity, scheduling, quality management, and production and inventory control systems?
In order to achieve the new manufacturing objectives, Shipper and ADAPT Division has to improve and revise different aspects. Shipper needs to reduce machine changeover time, moving processes closer to each other, and redesigning the product to be made faster. Also, The new business strategy has to be communicated to all the employees of the corporation. Once the employees acknowledge the new better perform the works. In addition, new equipments might be required to produce new products. The automatic systems will also need to be installed to better manage inventories and reduce the delivery down time.
The Division also needs to look at the workload and predict the production volume to estimate the workforce needed and if more employees are to be hired. Besides, since the high-volume products need to have good quality, managers have to enforce the quality control management by increasing walking around. In addition, objectives in Shipper Manufacturing can be achieved by having a sound production flow. Engineers should design not-too- complex products which require quick and easy assembly. The objectives can also be achieved through easily understood instructions and tasks set by managers.