OPS910 - Mech Wire Works Case Study - Supply Chain Analytics - Management Assessment Answer

OPS910: Supply Chain Analytics Management Assessment Answer

Assessment Task:

The story
Mech Wire Works, a Queensland Firm, is a medium-sized producer of wire windings used in making electrical transformers. Carlos Alvarez, the production control manager, described the windings to Jon Smith, the new management trainee, as being of standardized design. Jon’s tour of the plant followed the manufacturing sequence for the windings: drawing, extrusion, winding, inspection, and packaging. After inspection, good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked. Vivian Napoli, Mech’s general manager, stopped by Jon’s office and asked him to attend a staff
meeting.

“Let’s get started with the business at hand”, Vivian said, opening the meeting. “Ron studied operations management, so I think he can help us with a problem we have been discussing for a long time without resolution.” Vivian turned to Joseph Lowes, the production control manager. “Joseph, why don’t you describe the problem we are facing?”

“Well,” Joseph said, “business is very good right now. We are booking more orders than we can fill. We will have some new equipment online within the next several months, which will take care of our capacity problem. But that won’t help us next month. I have located some retired employees who used to work in the drawing department, and I’m going to bring them in as temporary employees next month to increase capacity there. Because we are planning to refinance some of our long-term debt, Vivian wants our profit to look as good as possible next month. I’m having a hard time figuring out which orders to run and which to back-order so that I can make the bottom line look as good as possible. Can you help me with this?” Jon was surprised and apprehensive to receive such an important task so early in his career.
Recording quickly, he said, “Give me your data and let me work with it for a couple of days”.

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