Determine a plan for improving productivity via process improvement and lean thinking. Assignment Overview Case: The Excellent Manufacturing Company & Productivity

Determine a plan for improving productivity via process improvement and lean thinking.
Assignment Overview
Case: The Excellent Manufacturing Company & Productivity

Note: Click the following link for information on the Excellent Manufacturing Company (EMC). You will find information on(A) EMC—Background Information; (B) Product Brochure; (C) Plasti-Brack Information; (D) Manufacturing Processes; (E) Basic Financial Information about EMC; (F) Organizational Chart; (G) Plant Layout

Scenario

Company E-Mail

FROM: Gerald Garcia

SUBJECT: Annual Productivity Plan

The Plasti-Brack product line is an important part of our business and with your qualifications, I am looking for some good things to happen with these products.

I am announcing the annual productivity plan and goal, which is for EMC to improve productivity this year by 5% overall. I am asking each manager to develop a productivity plan for their areas. This plan is to identify areas of productivity, the productivity measurements, and provide a plan for how the productivity will be accomplished.

I want you to consider using this multi-factor productivity measure: (Total Production of Plasti-Bracks) / (Total Paid Labor Hours). Using the most recent data available, this Productivity Measure is 332.73 pieces produced per paid people hours, for Plasti-Brack. You can review the detailed data to see how I determined this measurement. A 5% increase translates to 349.37 pcs/pd ppl hr.

You can plan on a 3% to 5% increase in demand for the next year.

Here is the data that has been collected and analyzed for the Productivity Index for Plasti-Brack.

Note: There is a lot of non-production time. I am sure we can eliminate some of this and convert it into productive use.

Given this overall productivity measure and the 5% goal, you should consider your next steps. First, do an assessment of the current situation. Then determine other subordinate productivity indices or factors that will be measured in your area of responsibility. What are the main issues and concerns about improving productivity this year? What are some of the possible processes that should be considered for process re-engineering or “lean” analysis? What improvements do you plan on making, and how will they achieve the 5% productivity goal?

Please do this analysis for your area. You should consult with the production managers as necessary. I want a report that provides an assessment of productivity measures and process improvement issues for the Plasti-Brack product line and related production processes. Your report should include the following sections: Review of the Current Situation, Goals & Objectives, Action Plans, and Explanation/Justification.

Since you are new to EMC, your report also should include a process flow diagram of several key Plasti-Brack processes. (See Section C: Plasti-Brack Information, Figure 2.)

I will be looking for your report in the next several weeks. Thank you.

Explanation & Answer

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