Homework Number One
1)
% Value Added Problem
Average Waiting time for three rides in Disneyland Calculate the %
Value Added time for each.
|
Ride
|
Avg waiting Time
|
Ride Length
|
Total Process Time
|
|
California Screamin
|
30 minutes
|
10 minutes
|
40
|
|
Indiana Jones
|
40 minutes
|
5 minutes
|
45
|
|
Matterhorn
|
60 minutes
|
10 minutes
|
70
|
2)
Process Efficiency Example
3)
Faircloth Financial specializes in home equity
loans, where customers can take out a loan against the equity they have in
their home. The current process is as follows:
·
The customer downloads the application from the
web, fills it out and mails the application to Faircloth
·
If there are any problems with the form, a
customer sales rep calls up the customer and reviews the problems. It may take
1-2 days to contact the customer. After getting ahold of the customer resolving
the issue can take anywhere from5-30 minutes. If the customer needs to fill out
or sign additional forms, it can take 5-7 additional days to mail the form and
get it back from the customer.
·
Every Monday, the CSR’s take a batch of
completed, correct applications to the loan officers. This means that if a
correct application comes in on Tuesday the soonest it gets in front of a loan
officer is the next Monday.The Loan Officers then take 2-3 days to process the
batch of loans based on information on the forms and information available from
credit rating bureaus Customers are advised by email and regular mail regarding
the final decisions
A)
Map out the existing process and identify rework
loops and delays in the process What causes these and what is the impact on cycle
times? How might this affect the customers’ willingness to do business with
Faircloth?
B)
What changes might you recommend to redesign the
process with the needs of the customer n mind?Imagine the “perfect process” and
base your recommendations on that.
4)
Zephtrex Fabric
Introduction
Zephtrex Fabric is a specialized
product made by Ellison textiles and used exclusively by the CMX Corp. The
current demand is just 1/3 of Ellison’s manufacturing capacity but the business
is expected to grow substantially over the next year.
Order Entry process
CMX sends and order to Ellison
textiles 15 business days before CMX needs delivery. However CMX would like to
shrink this to 10 days. As a CMX manager noted; “Fifteen days does not give us
the flexibility we need to respond to changes in the marketplace Sure, we could
hold extra inventory here, but I am not sure that is necessary given the
capacity situation at Ellison”
CMX sends the order to the Ellison
rep via email. That rep supports multiple plants and generally checks his
emails twice a day. However if he is travelling and does not have access to the
internet it may take 24 hours to respond to the order. The rep then passes
these orders onto the production planner at the next production planning and status meeting which occurs every Tuesday
and Friday morning at 7 AM via conference call
Production Planning Process
During the semi-weekly planning
and status meetings new orders are scheduled from production. On average it
takes 4 days to actually produce an order Orders are scheduled in weekly “time
buckets”. Meaning that all orders are scheduled to start on Monday and finish
on Friday Therefore and order received on Thursday will not be scheduled and
completed by the prior Friday. Similarly a customer order that came in on
Tiesday would not start until the
following Monday
A) Map out the order entry and
production planning processes. How long do these processes take? How much of
that time is “value added”?What is the percent value added time? What accounts
for the remainder of the time?
B) Will Ellison be able to Meet
CMX’s lead time requirements under the current process? What changes would you
propose?\
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