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ABC Company is a manufacturer of engine parts for heavy equipment vehicles. Here are some observations of their current operation: Last year the company sold
ABC Company is a manufacturer of engine parts for heavy equipment vehicles. Here are some observations of their current operation: Last year the company sold 20,000 units. Shipping and setup costs per order were $750 and the company has a standard cost of $1.50 per unit for storing. There is low visibility into what point components are at and where they are going in the manufacturing process. The market is changing quickly due to new competition and regulations. Internally there is instability in the hourly workforce. New product lines cause disruption to existing product lines manufacturing and sales processes. Movement between steps in the manufacturing process is slow. Certain sections of the process accumulate work waiting to proceed to the next step. Machinery randomly breaks down or stops. The plant manager is willing to speak with you for 30 minutes about anything. The topic of your meeting is 'Why do we often encounter production delays?' The workforce has seen a lot of new management initiatives and calls them 'flavors of the month' as an inside joke. If data were analyzed it would show more demand in the winter months for certain parts
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