Three exercises to solidify understanding of key operations management areas

You are planning to start The White Mountains Bakery in Plymouth, NH, a company that produces cakes for special occasions. Take action to achieve optimal capacity to meet customer demand while maximizing efficiency and minimizing costs.

TASK 1

Estimate/forecast the demand for cakes for the next few months. Do any research you need.

TASK 2

Estimate production capacity, which includes the number of ovens, mixers, and other equipment.

TASK 3

How do you minimize waste and costs?

TASK 4

Assume you opened the bakery and realized that you must have the capacity to produce 200 cakes per day to meet demand. Do you need to invest in capacity expansion by purchasing additional ovens and mixers? Do you need to reduce capacity? What would you do and how?

In the world of Lean Manufacturing, takt time is the rate at which the finished product needs to be completed, to meet the customer demand. Outside of Lean, the term references the German word for a Baton used to keep a tempo, or a 'heartbeat'.

The Takt Formula

Takt = T/D

Where T is Time available to create the product/service.

D is a demand for the number of units

T gives information on production pace or units per hours.

Consider this situation:

The Christmas NH Ornament company makes popular decorations and through October-December has a demand for 400 units (ornaments) a day. The factory operates for 800 minutes per day.

TASK 1

What is the takt time during October-December?

TASK 2

Demand for the Christmas NH Ornament company’s products tends to be lower outside October-December, and only at 100 units per day. What is the takt time outside the October-December interval?

TASK 3

You just become the Christmas NH Ornament company’s operations manager. How do you manage takt time? What actions do you take?

TASK 4

The process used to create the Christmas ornaments is hands-on, https://www.thisoldhouse.com/woodworking/22840299/how-to-build-christmas-ornaments.

Provide ideas to minimize or reduce waste in this process.

Use any six sigma tools or calculation to analyze and propose improvements for an operation. YOU MUST USE AT LEAST ONE SIX SIGMA TOOL FOR THIS EXERCISE.

TASK 1

Human resources: for an organization of which you have knowledge analyze if the employees are in the right positions and that they have the right qualifications and expertise. Also, verify that the amount of their output is appropriate. Suggest improvements.

TASK 2

Inventory: for an organization of which you have knowledge analyze whether the organization has any amount of extra inventory or has buffer stock. Suggest improvements.

TASK 3

Management: for an organization of which you have knowledge brainstorm new and innovative ideas for the growth of the company to ensure improvement. The main aim is not to repeat any mistakes keeping in mind the previous progress as well as suggestions.

TASK 4

Marketing: for an organization of which you have knowledge analyze the efficiency and effectiveness of its social media. Suggest improvements.