Assignment: Your CEO/Professor has just been awarded a major contract for your company

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Assignment: Your CEO/Professor has just been awarded a major contract for your company. He has directed your plant to develop a production and operations strategy to meet the new customer contract. Your objective is to produce a 5 to 10 page paper that will detail your plant’s ability to build these new orders.

Bicycles
Annual Volume	150,000 units
Plant Location	Houston, TX
Customer Location	Orlando FL
Operator Cost	$20/hr
Monthly Demand	12,500 units
Logistics: Air 1 day @ $1500/load, Truck 3 days @ $500/load, train 7 days @ $250/load	1200 Bicycles = 1 Full Load to Customer
Delivery Schedule	1 x week, 3,125 units

 

 

 

 

 

 

Shuttle Suppliers	Location	Components Supplied	Cost	Quality Rating	Delivery Rating	Lead Time (weeks)
Supplier A	Seattle, Wash	Sprockets	$100	.80	.90	2
Supplier B	Dallas, TX	Frames	$150	.60	.80	3
Supplier C	Joplin MS	Wheels	$75	.95	.75	5
Supplier D	Milwaukee, WI	Handle Bars	$500	.70	.90	2
Supplier E	Dallas, TX	Handle Bars	$450	.85	.80	3
Supplier F	Joplin MS	Chains	$300	.90	.95	6
Supplier G	Milwaukee, WI	Frames	$400	.95	.90	8
Supplier H	Seattle, Wash	Wheels	$200	.85	.80	10

 

 

 

 

 

 

Requirement 1:

Develop your plant’s operations and supply chain strategy: Clearly identify the following:

Mission statement

Identify you focus points

Requirement 2:

Illustrate your plants manufacturing process, layout, and customization point/s

 

 

Requirement 3:

Provide your plants quality strategy and definition

Provide one process example where you will utilize upper and lower control limits: (hint variable data)

Requirement 4:

Describe your plants capacity strategy – provide graphs

Determine the number of operators and shifts needed to assemble your product

What is your maximum capacity?

Requirement 5

What is your total cost to deliver your product to your customers?

Describe your logistics strategy and why?

What is your annual delivery cost?

 

CEO questions:

1) If the demand plan drop by 15%, how does this effect your direct labor, in the number of people and cost to the company?

 

2) What is your assembly line bottle neck?