Managing Manufacturing Operations: Analysis and Discussion: by T.A.J. Nicholson

By T.A.J. Nicholson

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Extra resources for Managing Manufacturing Operations: Analysis and Discussion: Teachers’ Manual

Example text

A more desirable approach is to consider ways in which the situation can be displayed at regular intervals for all relevant staff to see: Sales, Mr John J ones, Mrs Winwood and Finance. The display needs to include the aggregate factors as well as the individual situations by shade. 2 for which all the data is currently available from existing sources shown in the Illustrations. Ideally senior management and the foreman and a sales representative should meet once a month with this data displayed in front of them so that collective decisions can be reached.

Judging the stocks position The buffer between capacity and sales variation is the stocks position including: finished craft parts in store parts in order. These stock positions represent the cash tied up at any given time and, apart from items which can be resold, they represent the committed risk where they are not booked against an upstream order for craft. Ian Tyler is aware of this dilemma and knows that stocks are providing a trade-off between -a pure service function of parts availability responding to works order needs -a pressure on cash resources.

By manipulating the rates of working on each craft the aggregate position on anyone of these variables (cost, work content, state of completion) can be kept satisfactory although the consequences for individual craft build may be unfavourable. There is no magic way out of their difficulties. They have the flexibility with the high labour turnover at 70 per cent per annum to phase production levels up and down. They have no union. They do not have to have the sales with the low capital base and high labour added value.

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