Problem Statement
In the Gelatinas Juy factory, it can be noted that in recent months the losses in terms of the sale of pens have increased by 20%, the managers have determined that the possible cause is not only that this is a product that has greater demand in times of heat, but the problem is rooted inside the factory. It is worth mentioning that the plant has a large number of personnel in the production area, since it has an aggregate plan with a constant workforce, which works 250 days a year, of which 200 production days are allocated to the manufacture of pens.
The level of production is high, causing the warehouse to be at its maximum capacity, in addition to the fact that the product remains in it for a long time, with the consequence that the product reaches its expiration date, therefore causing losses for the company.
Not to mention that in the last hot season the company failed to deliver an order to its most important client, and in the same way to other clients, since it did not have the necessary quantity to cover the demand.
The events that have happened lately have the managers in a state of concern since the prestige of the company is in danger. Therefore they want this problem to be solved as soon as possible, so that profits can be obtained that help the company to cover the losses that have recently been registered.
Possible Alternative Solutions to the Previous Approach
| Alternative | Definition | Advantage | Disadvantages |
| Master Production Program (MPS) | It is a work calendar or schedule that specifies what should be done and when to do it (Chase, Aquilano, & Jacobs) | § Inventory levels are reduced § Resources are used more efficiently § Customer service is improved (Perea, 2013) | § Works with batch sizes § Delivery times and security stocks previously established by the user, without providing help for such configurations (Perea, 2013) |
| Forecast | Also called sales forecast is the sales estimate that we have for a certain period of time. | § It is a determining factor for the main decisions to be taken. § It allows to create an idea of what will happen. (Manolo Escobar, 2012) | § As these are forecasts, it could fall into a prediction failure. § It requires historical data to make the prediction. (Manolo Escobar, 2012) |
| Establish an Inventory Policy | Establish the necessary amount of raw material, materials or finished products that is required. | § Plans the optimal level of investment in inventories. § Maintain planned inventories (Welsch) | § Knowledge of all the processes involved in production § Criteria and methods necessary for control § Methods for Monitoring, measurement and analysis (Matamoros, 2010) |
| Inventories in the Supply Chain | Have the amount of goods available at a certain time (Cubillos, 2011) | § Inventory is maintained to protect against uncertainty caused by variations in demand or by
supply restrictions (Cubillos, 2011). |
§ If care is not taken to maintain the necessary amount of raw material or materials, it could cause a delay in the
supply of the next department. |
| Planned Supply System | Have a schedule for the supply of PM and / or materials. | § The departments would be stocked in similar times, and with the necessary quantities to use. § There would be no delays to wait for some material. | § Because it uses forecasts for its calculation, if the forecasts were wrong, the supply would be out of time or of
different quantities. |
| Analysis of the causes that cause an increase in the Inventory | Through the analysis we will be able to know which problem is the one that causes an increase in inventories. | § With the analysis not only would a problem be detected, if there are more we can detect them and try to eliminate them. | § It would take some time for the analysis which would cause the inventory to continue increasing. |
| Open a new Delivery Route | Create or design a new route for distributing the product, or start distributing it in neighboring cities. | § Increase in productive time (one more daily visit means, over a year, in terms of sales time
one more month) § Get all customers to visit and not just those who are "friends" or more comfortable for the seller. § It makes it easier to prepare the budget for travel expenses. § Increase in the regularity of visits and thus the customer's satisfaction of feeling cared for. § Cover the areas with equal intensity. (Gonzalez) |
§ Transportation investment.§ If you do not determine the appropriate route, you may fail in the sale of the product.§ Fuel costs. (González) |
| Promote the Product | Advertise the product in order to be known publicly (Manual Dictionary of the Spanish Language, 2007) | § Make more customers known. § Increase in sales is achieved. (MarketINC) | § The cost of advertising is usually high § Failure in advertising (MarketINC) |
| Aggregate Planning | Its mission is to establish production levels in aggregate units over a time horizon (Hernández Arévalo, 2013). | § It can avoid overtime. § It allows the company's production to be flexible and even. (Zarate, 2012) | § Customers must be willing to wait, so there would be loss of image. § Quality control is lost in reduced profits and losses of future business (Zarate, 2012) |
| MRP | It is a technique to determine the quantity and periodicity for the acquisition of dependent items that uses a bill of
materials, inventory, expected billing and master production schedule, in order to satisfy the material requirements of the MPS. (Chase, Aquilano, & Jacobs) |
§ Reduction of investment in terms of inventories, also in production and acquisition costs, in addition
to an improvement in delivery service (Reyes Aguilar, 2011) |
§ Implementing an MRP system is not easy, if the Company that wants to install the system does it in a hurry, that is,
without doing an analysis that proves that production operations are adaptable to the system, it will fail in the implementation and generate unnecessary expenses. (Reyes Aguilar, 2011) |
As we can see, the problem of the JUY Gelatins company can have various solutions, although the most viable would be:
- By observing and applying a questionnaire, detect the main problem Use a verification sheet for data collection Through the implementation of a Master Production Plan, level production levels, that is, establish how much to produce and when do what.
References
- Chase, R., Aquilano, N., & Jacobs, R. Operations Management. Ed. Mc Graw Hill. Cubillos, O. (27 of 09 of 2011). Just in time. Retrieved on September 17, 2014, from the Spanish Language Manual Dictionary. (2007). Manual Dictionary of the Spanish Language. Larousse Editorial.González, RM (sf). Marketing XXI. Retrieved on 09/17/2014, from Hernández Arévalo, LY (2013/10/11). Slideshare. Retrieved September 17, 2014, from http://es.slideshare.net/yazmin10/planeacion-agregada-conceptos-basicosm-y-teoria-en-generalManolo Escobar. (March 30, 2012). I say. Retrieved September 17, 2014, from https://www.diigo.com/item/note/2isve/a0s9MarketINC. (sf). MarketINC. Retrieved September 17, 2014, from http://www.emktinc.com/ventajas-y-desventajas-de-la-publicidad-en-internet/Matamoros, I. (2010). Eumed.Retrieved September 17, 2014, from http://www.eumed.net/ce/2010b/mhgg.htm Perea, G. (February 15, 2013). Prezi. Retrieved on 09 of 2014, from http://prezi.com/isrbyejohqva/plan-maestro-de-producion/Reyes Aguilar, P. (January 2011). Retrieved 09/17/2014, from www.icicm.com/files/MRP.docxWelsch. Budgets planning and control of profits. Zarate, J. (03 of 10 of 2012). Prezi. Retrieved 09-17, 2014, from http://prezi.com/cjioig48uhs5/copy-of-planeacion-agregada/Retrieved September 17, 2014, from http://prezi.com/cjioig48uhs5/copy-of-planeacion-agregada/Retrieved 09-17, 2014, from
