CASE FLASHY FLASHERS, INC Jack Jacobs, the P&IM Manager of Flashy Flashers, Inc., out there? Ive just received another call from a customer stopped for a moment to adjust his tie knot and run his complaining that we've fallen back on our lamp shipment fingers through his hair before entering the office of Ollie to them again! This is the umpteenth cime I've received Prout, the vice president of operations. From the tone of complaints about late shipments. Johnny has been on my Prout's voice over the telephone, Jacobs knew that he was back about this, Why isnt our system working as it is sup not being called for a social tte-3-teoe posed to and what do we have to do to hold onto valuable Jacobs gulped and took a moment to regain his com- re trying our best records and BOM files. With theres a new explosion each week. This nel. The fim produces a line of autosotive electrical com gives us an updated material requirements plan and action COMPANY BACKGROUND before answering Prout. We' Flashy Flashers, Isc, is a medium-sized firm employing to maintain the inventory 500 persons and 75 managerial and administrative person- our sysiem notices for launching new orders. Some of my group think we should extend our outputs to get prionity ponents. It supplies about 75 auto parts stores and Moonbird Silverstreak car dealers in its region. Johany Bennett, who serves as the peesident, the founded and capacity reports. As you know, we decided to get the order-aunching capability well established first. How- system of peiority company. Bennett is a great entrepreneur who started produing cable assemblies in his garage. Through hard ever, we don't seem to have a work, consistens product quality, and high custoner service, he expanded his business to produce a varicty of electrical componenss. Besnett's commitment to cus- tomer service is so strong that his company motto, Love Thy Customers As Thyself, is etched on a big cast-iron plaque under his giant oil portrai in ever, we don't seem to have a formal planning, and that's creating scheduling problems on shop floor I think our purchasing and marketing departments also are at fault. We scem to experience too many stock- outs of purchased parts even though we've worked closely with Jayne Spring's group to get realistic lead-time esti- mates. And marketing keeps taking last-minute orders front The company's two most profitable products are the automotive front sidelamp and the headlamp. Withthe recent boom in the auto industry and the rising popularity of Eurosport sedans such as the Moonbird Silverstreak, Flashy Flashers has enjoyed substantial demand for these two lamp iems from favorise cuscomers. This plays havoc with our master production scheduke. WelI'm really gecting fed up with this,"Prout cut in Talk with the people concerned and find out what exacrly is going wrong. Ill expect a complete report from you in two weeks, giving me all the decails and recommendations for Last year, on Prout's recommendation and for better management of the inventory system-Bennett approved the installation of a new MRP system. Prout worked Jacobs decided to get to the bottom of things, as he walked out of Ollie's office. He first called on Sam dloscly with the task force created to bring MRP on-line. McKenaie, the shop superintendent He frequently atended the training sessions for selected employees, emphasizing how MRP should help Flashy Flashers secure a better competitive edge. On the day the PRODUCTIon sysem "wens up," there was an aura of tranquility and good-will. The days of the informal system of fire fighting were over A year later, Prours mood is quite different. Inventory and overtime levels had noc dropped as much as expected, customer service was getting worse, and there were too many complaints about late shipments. Convinced that this should not happen with MRP, Prout is attempting to find out what is going wrong. Jacobs's conversation with McKenzie supgested that the pre-MRP informal system is still alive and wel "'m start- ing to wonder about this MRP system, even though it looks great on paper," McKenzie commented. "Last week hardly had any work, and I was foeced to owerpeoduce on several orders just to keep everyone busy This wock is just the opposice, so many sew orders were released with everyone will need to work over- time. It's cither feast or famine! Our priority planners don't seem to update the due dates assigned to each order, we short fuses that almost but things change pretty quickly around here. THE PROBLEMS Jacobs had barely taken two steps inside Prout's office when his voice cut across the room. "Jack, what's going on Another thing is the invemory records. When I gee ar oede, I first check the invercoey record foe that item to find out the current stock situation. More often than mot, the CASE FLASHY FLASHERS, INC Jack Jacobs, the P&IM Manager of Flashy Flashers, Inc., out there? Ive just received another call from a customer stopped for a moment to adjust his tie knot and run his complaining that we've fallen back on our lamp shipment fingers through his hair before entering the office of Ollie to them again! This is the umpteenth cime I've received Prout, the vice president of operations. From the tone of complaints about late shipments. Johnny has been on my Prout's voice over the telephone, Jacobs knew that he was back about this, Why isnt our system working as it is sup not being called for a social tte-3-teoe posed to and what do we have to do to hold onto valuable Jacobs gulped and took a moment to regain his com- re trying our best records and BOM files. With theres a new explosion each week. This nel. The fim produces a line of autosotive electrical com gives us an updated material requirements plan and action COMPANY BACKGROUND before answering Prout. We' Flashy Flashers, Isc, is a medium-sized firm employing to maintain the inventory 500 persons and 75 managerial and administrative person- our sysiem notices for launching new orders. Some of my group think we should extend our outputs to get prionity ponents. It supplies about 75 auto parts stores and Moonbird Silverstreak car dealers in its region. Johany Bennett, who serves as the peesident, the founded and capacity reports. As you know, we decided to get the order-aunching capability well established first. How- system of peiority company. Bennett is a great entrepreneur who started produing cable assemblies in his garage. Through hard ever, we don't seem to have a work, consistens product quality, and high custoner service, he expanded his business to produce a varicty of electrical componenss. Besnett's commitment to cus- tomer service is so strong that his company motto, Love Thy Customers As Thyself, is etched on a big cast-iron plaque under his giant oil portrai in ever, we don't seem to have a formal planning, and that's creating scheduling problems on shop floor I think our purchasing and marketing departments also are at fault. We scem to experience too many stock- outs of purchased parts even though we've worked closely with Jayne Spring's group to get realistic lead-time esti- mates. And marketing keeps taking last-minute orders front The company's two most profitable products are the automotive front sidelamp and the headlamp. Withthe recent boom in the auto industry and the rising popularity of Eurosport sedans such as the Moonbird Silverstreak, Flashy Flashers has enjoyed substantial demand for these two lamp iems from favorise cuscomers. This plays havoc with our master production scheduke. WelI'm really gecting fed up with this,"Prout cut in Talk with the people concerned and find out what exacrly is going wrong. Ill expect a complete report from you in two weeks, giving me all the decails and recommendations for Last year, on Prout's recommendation and for better management of the inventory system-Bennett approved the installation of a new MRP system. Prout worked Jacobs decided to get to the bottom of things, as he walked out of Ollie's office. He first called on Sam dloscly with the task force created to bring MRP on-line. McKenaie, the shop superintendent He frequently atended the training sessions for selected employees, emphasizing how MRP should help Flashy Flashers secure a better competitive edge. On the day the PRODUCTIon sysem "wens up," there was an aura of tranquility and good-will. The days of the informal system of fire fighting were over A year later, Prours mood is quite different. Inventory and overtime levels had noc dropped as much as expected, customer service was getting worse, and there were too many complaints about late shipments. Convinced that this should not happen with MRP, Prout is attempting to find out what is going wrong. Jacobs's conversation with McKenzie supgested that the pre-MRP informal system is still alive and wel "'m start- ing to wonder about this MRP system, even though it looks great on paper," McKenzie commented. "Last week hardly had any work, and I was foeced to owerpeoduce on several orders just to keep everyone busy This wock is just the opposice, so many sew orders were released with everyone will need to work over- time. It's cither feast or famine! Our priority planners don't seem to update the due dates assigned to each order, we short fuses that almost but things change pretty quickly around here. THE PROBLEMS Jacobs had barely taken two steps inside Prout's office when his voice cut across the room. "Jack, what's going on Another thing is the invemory records. When I gee ar oede, I first check the invercoey record foe that item to find out the current stock situation. More often than mot, the