Rahul Kothari

York Identification No: 210702686

US Stroller:

JIT – just in time term is used for production, scheduling and inventory management
where by products are produced only to meet actual demand and materials for each stage
of production are received or produced “just in time” for use in the next stage of
production or for delivery to customer.

Production in classical system is normally based on speculative demand (future demand

is forecasted). The demand forecast is then “folded back” based on the production lead
time for each process to determine when the production has to begin to meet the deadline.
Materials are ordered and first step in production process is scheduled. The production of
subsequent step depend on the completion of earlier production stage. Production is
initiated by scheduling the first production stage and then output is “pushed” through
production system – push production system.

In pull production system production of specific product is initiated by the final stage of
production in response to actual or assured demand, and production is “pulled” through
the system, the final stages pulls the needed material from the preceding stage, which
pulls from its preceding stage and so on. The underlying idea of an assured demand, pull
system is “anything not produced for the customer is overproduction”.

Cellular manufacturing process is a combination of “mini flow process” & a “job shop”
in one area of the plant to manufacture one family of product. Since the machines
producing the same product are all under one area, helps in reducing the lead time and
productivity increases. This also helps in bringing down the work-in-process (WIP)
inventory.

An MRP system assumes that the final product is made up of hierarchy of assemblies,
subassemblies, components and raw material. For demand dependent components, once
the production schedule for the end product is established, the amounts of each type of
component needed and when they are needed can be determined. It helps in planning of
production and inventory more effectively. The inventory is ordered only when required,
thus lowering inventory costs and simultaneous reduction in the chance of component
stock out. The MRP can be either push or pull oriented system. The only difference is
that when integrated with the pull system the cost of carrying inventory will be much
lower when compared to push system. Since JIT Pull system is based on the actual
demand. This system can precisely tell the number of quantity to be made at each stage
so that the production can meet the actual demand.

Economic Order Quantity – the total cost curve represents the sum of ordering cost and
carrying cost for each order size. The order size at which the total cost is minimum. The
company have the same assembly line for making 3 different types of trolleys. To keep
the total stocking cost less for 3 different types of trolleys which are produced on a lot-
for-lot basis, thus company uses EQO to determine how much to order and in what
quantity.

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 Rahul Kothari
York Identification No: 210702686
Currently US stroller faces problem of high inventory cost (31% of sales), poor customer
services and high production costs. The labor cost is high (19.6% of sales). The plant
layout has several work centers. Each department process components irrespective of
whether it will be used in next process or not. When not used these components are kept
in the inventory, thus increasing the work in process. One assembly line for all three
stroller. This leads to high setup time for changing assembly line from one stroller to
other. The company holds high inventory as safety stock. The company’s operational
decision is based on the forecasted annual demand and master production schedule is
prepared on a weekly basis for eight weeks into the future. With the current working the
company makes approximately 2096 strollers.

With option 1 – pull system: Three separate lines would be set up for each finished
product. This would eliminate change overs at final assembly. It will reduce inventory at
field warehouse, to about 15-30 days’ supply. Since the setup time for changing the
assembly line is almost eliminated the EOQ becomes less. So the master production
schedule is prepared frequently for shorter period of future than stated earlier. Uniform
load is spread across the plant since each week same amount of stroller is scheduled.
Disadvantage of this system is that - Additional investment on tube cutting machine and
200,000$ for additional assembly table. The company should also spend to train its
suppliers to adapt to JIT practices & to improve their production. Even the attitude of the
worker to change to the system must be positive.

With option 2 – Manufacturing cell: supervision & fast feedback becomes easer since
things moved closer. The quality problem can be readily evident. People working in the
cell will gain an identity with particular product produced. Cell takes less space.
Throughput time & set up time decreases. In process inventories are smaller because of
more efficient scheduling and reduced time disruptions. Also, the shorter throughput time
reduces the amount of safety stock needed. Investment in equipment is needed & cell
gives the less flexibility to demand change.

I recommend company to go ahead with option 2. Though investment in equipment is to

be made, the total equipment often decreases because the increase in efficiency and
machine utilization. In addition the similarity of products running within cells reduces the
number of fixtures and tools needed in production. Worker will enjoy more satisfaction
because they have greater job variety since their work involves several machine and
tasks. The company should adapt to 2 bin system. This will bring down the inventory
cost. (approx. 21% of sales). Since the setup time decreases the EOQ decreases
dramatically. The MRP of the system will be more frequent in a week and scheduled for
shorter week. I am not suggesting option 1 to implement - the system needs to be tight &
under control. Then only JIT is possible. It does not only want improvement from your
system but also from suppliers system. So I believe that the company should go with
option 2.

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 Rahul Kothari
York Identification No: 210702686
http://global.factiva.com.ezproxy.library.yorku.ca/pcs/default.aspx

find the dream job

talk to ppl in that job
networking....
start with backward !!
like wat do i want to be in next 20 yrs...
how will i go ...

 
identify the gaps...
assess urself..
 
take care of health & do exercise

resume:

objective statement: write wat the interviewer wants and not where u want to be…..

my objectiveis to work as a sales professional (position u want to be in) in IT industry

( the industry u want to work in ) where I’ll be able to build on my exp in IT
( basically ur skill fitting the industry needs to highlight here)

star

situation
task
action
result

to start the line in resume ( starting word ) ----- worked/sold/did……..

interview:

tell me abt urself….

( Here the interviewer does not want to know were is ur place of study ..etc but how ur
profile matches with the company profile - needs)

2-3 international jobwebsite were schulich is member….(qsglobalworkspace.com ..…---

chk for the correct website from navneet…and cmd site….)

http://www.scribd.com/doc/21985198/Solution-Atkinson
 

3
 Rahul Kothari
York Identification No: 210702686
http://www.pdfgeni.com/book/management-accounting-solution-manual-atkinson-
pdf.html