FSCM Tutorial 6

Case 3
1. What are the desired outcomes for Evergreen? What should Evergreen wish to
accomplish with its order entry system? How do we know if the order entry system
is working well or poorly? How is it doing now?
Evergreen wants to provide its customers with quick delivery and quality. With this
order system they want to ensure that their customers get helped well and quick.
The facts that customer dissatisfaction is growing, on-time delivery performance is
poor and overtime is excessive show us that this system is working very poorly.

2. What do the customers want from Evergreen? What types of problems do the
existing customers pose for Evergreen? Why?
They want to have quick and reliable service, but because of their late orders,
Evergreen can’t ensure this. Mainly because of their slow order entry system.

3. Apply the process for incorporating value through process thinking to this problem.
What metrics would you apply to this process? What insights into the process did
you obtain?
I would measure order-to-delivery time. This shows us that the process takes to long,
that there are too many different departments involved and these departments
aren’t working close together.

4. How would you improve the operation of the current order entry process at
Evergreen? Be specific
I would try to make one big general ordering system, maybe supported by some
digital software, so that there are just one or two departments involved and the
software takes a lot of work away.

Problems
1.a) 350
1.b) (190+235)x0.725=308.125

3.a) (2x8)x275=4400 hours a year 4400x60= 264.000 minutes a year

15x15000= 225.000 + 8x18000= 144.000 + 16x12.000=192.000 =561.000
demanded 561.000/264.000=2.,,, ->3

7.a)
7.b) Tell costumers to be on time, have a time limit, hire more staff, educate staff to be more
efficient

8.a) flow time= inventory/throughput = 450/325= 1.38 h/video

8.b) having more of better educated staff, work more efficient by using systems

Case 5
1. Using the product-process matrix, which processes are likely to be used by Ohori’s
and Folgers? Why?
Ohori’s: Batch (Moderate volume and variety)
Folgers: Repetitive/Continuous process (High volume and low variety)

2. Explain how the choice of process supports each organization’s competitive

priorities.
Ohori’s is a small boutique which wants to provide a lot of different high quality types
of coffee and therefore has a less automated production process, so that they are not
able to produce a lot but can guarantee high quality. While Folgers wants to sell their
beans to the mainstream coffee market and therefore has a fast, simple and
automated production process. This produces a lot of standardized and cheap beans.

3. Is the operations layout likely to be the same or different at Ohori’s and Folgers?
Why?
No, they are probably different from each other. Ohori’s follows a much more
functional layout and Folgers a more cellular layout.

4. What changes would Folgers need to make to compete directly with Ohori’s? Why?
They would have to start offering more different types of coffee with a higher quality
than they can produce now.

5. What are the benefits and drawback from the lack of automation in Ohori’s coffee
roasting process?
Benefits: It fits their boutique type of shop better, more variety, more flexibility
Drawbacks: Higher costs, less output

Problems
2.a) 8x60=480 480/40=12 min
2.b) 22/12=1.83->2
2.c) ?
2.d) ?
4.a)

4.b) 3600sec/60u=60 sec per u

4.c) 195/60=3.25->4
4.d) 1=a,c 2=b,d 3=e,f,g 4=h
4.e) 195/(60x4)=0.8125