Megacorp's Crane Manufacturing company (CMC) operations analysis

Extract

[...] In case the customer requires a new design of cranes, the company ensures that they are able to make excess items assist in case spares will be required. Since the production of parts and cranes depend on specific customer demands, some of the items can be produced even once in a year. This type of operations poses a huge challenge to inventory planning and management. For instance, in this approach, the company cannot remove part information from the master file, most cranes are designed in a way that they meet specific customer requirement while the re-use of component designs in rare. [...]

[...] That is, the areas that needed improvement included purchasing, marketing and operations. Based on the goals of providing high-quality products in a cost-effective way and timely manner, the researcher suggests two strategies that can enhance the operations in the identified three areas. The two strategies include Just in time (JIT) manufacturing based on a computerised material requirement planning (MRP) system and an integrated customer relationship management strategy. ❖ Just-in-time (JIT) manufacturing Since the demand for cranes and parts is irregular, the company should only order for materials when there is demand. [...]

[...] This system delivers on the goals of quality and customer satisfaction since product designs will be originating from the customers themselves. Proposed changes In order to implement the strategies identified, the company must ensure that operations within certain departments changes. First, the company must ensure that information is shared among the departments in order for the identified computer-based systems to be effective. Second, the company must consider automation of some of the routine production works in order to improve the quality and effectiveness of operations at the company. [...]

[...] Apart from the design department, other sections of the company have not embraced the use of technology in operations. Other wastages that contribute to the inefficiency of operations at CMC include a lot of worker movements and time wasted due to machine idling. On the other hand, longer lead times are a factor that can lead to dissatisfaction of the customers even if the product quality is high. The company must therefore ensure that lead times in production can be shortened. [...]

[...] Megacorp's crane manufacturing company (CMC) operations analysis Introduction Megacorp's CMC manufactures cranes which can be used for different factory and process line operations in various factories. They manufacture small and large cranes which are able to hoist different rectangular containers. For fifty years, the company has been relatively successful in the industry and has expanded its market to the entire EU region. Nevertheless, Megacorp's management are looking for ways of improving its service delivery currently and into the future. This paper therefore examines various problems that the company faces and suggests various solutions which can be used to curb these challenges. [...]