Running head: Case study Lesson 71

Case study4

Lesson 7 Case StudiesSubmitted by: Narendra Raj BohoraOperation Management: Level Operation

Level operationSmall company located in Pennsylvania, manufacturers a variety of security devices and safes. Several different models of safes (S7-S8-S9-S1-S2) are available for purchase and due to increased demand the production facility has been enlarged to accommodate the additional production needs. Production manager Stephanie Cole must determine the best production quantity per cycle for each day of the week. She understands that partially completed safes are not permitted (each cycle must turn out finished cycles). Stephanie consulted the engineering department; they have determined the best production sequence is S7-S8-S9-S1-S2.Stephanie must comprehend the large picture of production demand in order to ensure the product availability to meet the needed demand. The ultimate goal should be a balanced operation system as well as she has to think about market demand, inventory policy, and Nature of the product in production plan. One that makes the process time as short as possible, eradicate disruptions and eliminate waste (excess inventory). Stephanie was given weekly quantity demands; she must first break those numbers down to daily production demands, determine the number of cycles to run daily, and how many of each safe model to produce in any given cycles as shown in Figure 1. The cycle time is 5, as the least demand for daily production is 5.

S.NModelWeekly Demand DailyProductionDaily realproductionUnits/Cycle

1S1120120/5=242424/5=4.8

2S2102102/5=20.42121/5=4.2

3S74848/5=9.61010/5=2

4S89090/5=181818/5=5

5S92525/5=555/5=1

Figure 1. ModelTotal

S1S2S7S8S9

If the inventory cost is high, firm can produce

4423114

If the inventory cost is low, firm can produce

5524117

Figure-2 As the given sequence by engineer, firm can produce their respective number of model in 5 cycle time as shown in figure-3.

1st cycle2nd cycle3rd cycle4th cycle5th cycleproduction

S7 (2)S7 (2)S7 (2)S7 (2)S7 (2)10

S8 (3)S8 (4)S8 (4)S8 (4)S8 (3)18

S9 (1)S9 (1)S9 (1)S9 (1)S9 (1)5

S1 (4)S1 (5)S1 (5)S1 (5)S1 (5)24

S2 (4)S2 (5)S2 (5)S2 (4)S2 (3)21

=14 =17 =17 =16 =14

3extra3 extra2extra

Figure-3From above analysis Stephanie can choose low inventory policy or high inventory policy on the basis of holding cost and lost sells. Stephanie can suggest production manager for fulfilling above demand to produce the above item in five cycle of sequential order as shown in figure-3.

Bibliography(n.d.). Retrieved 08 19, 2014, from www.studymode.com: www.studymode.com/essays/Level-Operations-46677243.htmlStevenson, W. (2009). Operation Management (10th ed.). McGraw-Hill Irwin .