WILKINS, A PRODUCTION PLANNING

GROUP-6

Anirban (188031)
Ankit()
Tarun (177219)
Nature of Wilkins business

 and excess capacity in other season due to seasonal demand

 Low labor cost
Major Challenges

 Seasonal demand of PVB causing production capacity constraints in peak season

and excess capacity otherwise
 Irregular demand of Fire Valves
 Excess inventory at plant
 No inter supplier transfer
Target to reduce the inventory by 30%

Time of 2 weeks

• 6 Employees of PVB cell manage both Dept 101 which supplies Machine Castings to the
PVB cell and Dept 104 which produce PVB cell

CSL 99% z value 2.326347874    

    Q1 Q2 Q3 Q4
Std Dev.   1877 3368 3851 8154
Safety Stock   1712.703765 3073.194609 3513.916995 7440.269846
 Level Strategy

Average Inventory 39,034

Average Inventory Reduction 34.29% Results
Chase Strategy

Average Inventory 7688

Average Inventory Reduction 87%
 “Chase” and “Level” strategy

 In level strategy changes in demand are met by inventory, overtime subcontracting, etc.
 In chase demand workforce level or production rate is changed in order to meet demand.
 The planning on choosing the strategy depend on which cost is higher cost of hiring and firing is high
or cost of subcontracting.
 In level strategy we can manage with 2 shifts as the upper limit of 7 employees to be employed at the
PVB cell in a single shift
 In chase strategy we will have to plan for both hiring and firing also going with the 3 shifts.
Thank you!