case study

case study Case Studies CASE ONE AG Z

By implementing a just-in-time system for manufacturing AG Z will be able to drastically reduce costs now associated with inventory and quality control . The new measures would include re-ing levels which would occasion new stock being created only when demand levels warrant it . The new stock will only be manufactured when stock depletions reach a prearranged level . In the case of extraordinary or unanticipated demand , a back-stock or "safety " stock will be established . This "safety " stock should be at least three standard deviations

of demand

A JIT system will reduce set-up times at AG Z factories , the streamlined flow of goods from production to shelf will eliminate many quality control issues and assure a higher quality of production and stock . Employees will be able to spend more time on each step of the manufacturing process and stay focused on specific goals and needs Simplification of employee functions and duties and elimination of warehouse crowding will do a lot to improve AG Z 's bottom line

If demand drops , employees can either be channeled elsewhere or kept away from wage-earning tasks which will help cut production costs . A JIT system will also help improve relations and logistics with suppliers as there will be made only when necessary and there will be less of risk of a supply shortage happening simultaneously with a rise in product-demand

Improved customer service , enhanced quality control , the conservation of labor and wage-expenditures , the meeting of demand and the clearing of space are among many other benefits of the JUT system Since the JIT system addresses not one , but many of , AG Z 's current challenges , it is strongly suggested that a JIT plan be implemented

CASE 6-1

Jennifer Roberts ' idea about new information management systems and technologies are sound . The inclusion of communication strategies and information flow strategies into a new business plan for Leola Mills will stave off the deserting bakeries and other clients by providing Jennifer with the information she needs to make competitive bids , by delivering a better product , and by minimizing the costs associated with the storage and maintenence of the flour

By re-evaluating her information systems process nad by making adjustments , Jennifer should be able to improve the flow of usable information as it pertains to real-time issues and needs . Among other aspects , the information of most notable interest is that which pertains to purchase s , invoicing , proof of delivery , quality control , and labor /production levels . Logistic and supply-chain information are crucial to maintaining overall cost efficiency and strategizing for competitive pricing

By identifying information failures : areas in the production-sales chain , Jennifer will be able to further increase productivity and reduce costs for Leola Mills . Areas where information failures can be found include a breakdown or breakdowns in information with suppliers , with production staff and labor , or with retailers and customers . An information failure at any of these points can prove to be quite troublesome and can result in a lag in...