Mexicana Wire Works
Mexicana Wire Works
In partial fulfilment Of the course requirement In Management Science 1st Term, S.Y. 2012-2013 Submitted to: Dr. Dennis Berino
Prepared by Group 5: Shyne Ampatuan Diberjohn Balinas Jo-Ann Deseo July 24, 2012
Company background
Mexicana, a subsidiary of Westover Wire Works, a Texas firm, is a medium-sized producer of wire windings used in making electrical transformers. Its product, the windings, is considered a standardized design. The production process for this involves 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. Please refer to the plant lay-out below: Office Wire Drawing Finished Product Storage Rework Department Rejected Product Storage
Packaging Receiving and Raw Materials Storage Winding Extrusion Inspection
Mexicana would want to address its capacity problems. Thus, Vivian Espania, the general manager, has asked Ron Garcia, the new management trainee, to help the company in addressing its issues.
Problems of the case
Mexicana is planning to refinance some of its debts. As such, Vivian would want to optimize the profit for the month of April using its limited capacity and resources. However, the main problem is this: Mexicana is booking more orders than it can fill (booking orders > production using present capacity). Although the company plans to have some new equipment within the next several months, the plan would not help the company to immediately address this issue for the month of April. Thus, Mexicana is now considering re-hiring some retired employees in the drawing department in order to increase the capacity during the month. From the above, the group would want to address the following issues: a. What recommendations should Ron Garcia make in order to address the over-booking problem of Mexicana? b. Is there a need for temporary workers to be re-hired in
In partial fulfilment Of the course requirement In Management Science 1st Term, S.Y. 2012-2013 Submitted to: Dr. Dennis Berino
Prepared by Group 5: Shyne Ampatuan Diberjohn Balinas Jo-Ann Deseo July 24, 2012
Company background
Mexicana, a subsidiary of Westover Wire Works, a Texas firm, is a medium-sized producer of wire windings used in making electrical transformers. Its product, the windings, is considered a standardized design. The production process for this involves 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. Please refer to the plant lay-out below: Office Wire Drawing Finished Product Storage Rework Department Rejected Product Storage
Packaging Receiving and Raw Materials Storage Winding Extrusion Inspection
Mexicana would want to address its capacity problems. Thus, Vivian Espania, the general manager, has asked Ron Garcia, the new management trainee, to help the company in addressing its issues.
Problems of the case
Mexicana is planning to refinance some of its debts. As such, Vivian would want to optimize the profit for the month of April using its limited capacity and resources. However, the main problem is this: Mexicana is booking more orders than it can fill (booking orders > production using present capacity). Although the company plans to have some new equipment within the next several months, the plan would not help the company to immediately address this issue for the month of April. Thus, Mexicana is now considering re-hiring some retired employees in the drawing department in order to increase the capacity during the month. From the above, the group would want to address the following issues: a. What recommendations should Ron Garcia make in order to address the over-booking problem of Mexicana? b. Is there a need for temporary workers to be re-hired in