MEXICAN WIRE WORKS 5
It is clear that what Mexicana wire works needs to do is toincrease its capacity in order to meet the increasing demands for theclients. The task that Garcia has been assigned is hard and demandsthat effective plans are laid out to ensure that the deb balance forthe organization is attractive. It is useful for Garcia to supportthe proposal by Jose to call back some of workers in the drawingdepartment in order to increase the capacity. A closer look at thedata that was provided to Garcia, one is quick to notice that thereare 850 unit that are rejected from the winding and that requirereworking. This is a huge number considering that the average outputis only 2400 units per month. It is therefore essential for Garcia topropose measures that would ensure that there are extremely few unitsthat are rejected and returned for reworking. This would ensure thatthe capacity is increased significantly and this would imply that theorganization makes profits. It I also clear that there are noinspection units in the different levels of production. This could beone of the reasons why there are numerous rejected units. Themanagement should consider having inspection managers at every levelin the production process. This is illustrated below:
It is advisable for Garcia to ensure that there are as little backorders as possible. It is evident from research that backorders arenot good for business. It is essential for every organization to havethe customer’s orders filled in time. Reduced the rejected units inthe processing procedure would reduce the backorders significantly.Besides increasing the workers at the drawing level, it is essentialto have other levels such as winding and extrusion enhanced in orderto handle the increasing capacity. Considering that the organizationwas planning to acquire new machines for production, it is essentialto have the existing machines repaired and maintained to ensure thatthey work optimally. The high number of rejected units in the windinglevel is an indication that the machines might be faulty and thismight be contributing to this rejected units. As it is clearlyindicated, the average machine utilization is only at 65%. If thesemachines were used optimally, the organization can indeed increaseproductivity to meet the customer demands. Garcia would also proposethat the organization embark more on the rework department for themonth of April. This is because most of the units are delayed in thisunit. If work in this unit would be enhanced, there would beincreased productivity.
The temporary workers productivity in the drawing department are asuseful as the other workers in the other departments. It would makelittle sense if there would be enhanced productivity at the drawingdepartment, but for only their efforts to be frustrated in the otherlevels such as winding and extrusion. It is essential to note thatthe temporary workers will not be paid the same as the existingpermanent employees and this would an advantage to the organization.It is also useful to state that the temporary workers have worker forthe organization previously and they therefore have sufficientknowledge and skills about the drawing process. Their input will beextremely vital for the organization’s capacity. The temporaryworkers will ensure that there are no such huge amounts of backordersin the organization.
Considering that Jose had pointed out the temporary workers asimportant in the drawing department, it is essential to support themove of having the temporary workers for the month of April. Jose isthe production control manager and he must have carried outsufficient research to figure out where the problem of incapacityarises at. Drawing is a pivotal part in the production process. It isthe first step and therefore it sets the pace and the tone for theother steps in the production process. Therefore, if the drawingdepartment increases the capacity, it is abundantly clear that therest of the departments will have that trickledown effect and willincrease their capacity as well. It is therefore crystal clear thatthe temporary workers are needed in the company for the month ofApril.
The plant layout seems like a simple process but it indeed acomplex process from drawing to packaging. Sourcing the raw materialsis indeed the first step in the process of producing wire windings.This is followed by drawing and then extrusion where the raw materialare pressed. This is followed by the vital process of winding whichnow results in the final product. As a rule of thumb, the product isinspected before it is packaged and delivered to the client. Theproducts might be stored in instances where the customers have notdemanded them. However, it is clear that the inspection process onlyoccurs after the finished product has been produced. In order toreduce the rejected units and to enhance the production process, itis vital to have inspection managers at every level. This wouldensure that the products that get to the final level of winding areindeed perfect. Additionally, flaw would noticed early enough in thelayout.
Mexicana wire works. Case study. Pdf.