BUS644 Week 6 Assignment
SPACE AGE FURNITURE
(YOUR NAME)
BUS 644, Week 6 - Assignment
(INSTRUCTOR NAME)
March 16, 2015
A Case Study of Space Age Furniture
Introduction
Space Age Furniture manufactures tables and cabinets for microwave ovens and portable televisions. Both cabinetry styles comes in various sizes offering a number of features however; the basic construction follows the same production and assembly. The focus will be on two types of cabinets; the Saturn which is utilized to house microwaves and the Gemini television stand. Both of these cabinet types require a part which is referred to as part 3079. In order to produce part 3079, a skilled machinist is required to program and stand watch on a special lathe. The skilled machinist, Ed Szewczak, is unhappy because of the increase in overtime to produce part 3079 due to the implementation of material requirement planning (MRP) system. Space Age Furniture has adopted the MRP system in order to reduce storage cost. The estimated storage cost for specifically part 3079 is $1.50 per week for the Saturn microwave stand and $1.25 per week for the Gemini television stand therefore; the part is produced when needed and Space Age Furniture does not want to have an abundance of parts on hand. The master schedule for producing the Saturn and Gemini cabinets is illustrated in Table 1.
Table 1 Saturn and Gemini Cabinets Master Schedule
Week
1
2
3
4
5
6
Saturn
300
400
400
600
300
300
Gemini
600
400
700
500
400
600
Part 3079 is used in subassemblies no. 435, which is used in the Gemini television stand and no. 257 used for the Saturn microwave stand. In each subassembly one of part 3079 is used, and only one of each subassembly is used in the final product. Even though, the lathe is only used to product part 3079, Space Age Furniture determined the subassemblies will only be produced in quantities of 1000 minimally (Vonderembse & White, 2013, Chap. 9).
Based on the case study and the information provided, an MRP will be
(YOUR NAME)
BUS 644, Week 6 - Assignment
(INSTRUCTOR NAME)
March 16, 2015
A Case Study of Space Age Furniture
Introduction
Space Age Furniture manufactures tables and cabinets for microwave ovens and portable televisions. Both cabinetry styles comes in various sizes offering a number of features however; the basic construction follows the same production and assembly. The focus will be on two types of cabinets; the Saturn which is utilized to house microwaves and the Gemini television stand. Both of these cabinet types require a part which is referred to as part 3079. In order to produce part 3079, a skilled machinist is required to program and stand watch on a special lathe. The skilled machinist, Ed Szewczak, is unhappy because of the increase in overtime to produce part 3079 due to the implementation of material requirement planning (MRP) system. Space Age Furniture has adopted the MRP system in order to reduce storage cost. The estimated storage cost for specifically part 3079 is $1.50 per week for the Saturn microwave stand and $1.25 per week for the Gemini television stand therefore; the part is produced when needed and Space Age Furniture does not want to have an abundance of parts on hand. The master schedule for producing the Saturn and Gemini cabinets is illustrated in Table 1.
Table 1 Saturn and Gemini Cabinets Master Schedule
Week
1
2
3
4
5
6
Saturn
300
400
400
600
300
300
Gemini
600
400
700
500
400
600
Part 3079 is used in subassemblies no. 435, which is used in the Gemini television stand and no. 257 used for the Saturn microwave stand. In each subassembly one of part 3079 is used, and only one of each subassembly is used in the final product. Even though, the lathe is only used to product part 3079, Space Age Furniture determined the subassemblies will only be produced in quantities of 1000 minimally (Vonderembse & White, 2013, Chap. 9).
Based on the case study and the information provided, an MRP will be