Posted: May 19th, 2022

Enhancing Business Processes

Enhancing Business Processes

1. What kind of Manufacturing operation does the ABC Corp. have (MTO or MTS)?
Make to Order (MTO) refers to a enterprise manufacturing method that often permits shoppers to purchase merchandise which can be custom-made to their specs. As such, it’s a course of of producing wherein the manufacturing of an merchandise begins solely after the order of a confirmed buyer is acquired (Altendorfer, 2013). Then again, in Make to Inventory (MTS) merchandise are produced and stocked as stock till a buyer purchases them (Altendorfer, 2013). Based mostly on these definitions, it could possibly thus be concluded that the manufacturing operation that ABC Corp has is the MTO. It is because the manufacturing of the computer systems was made after a buyer made an order. As well as, the acquisition of laptop peripherals (keyboards, mouse and audio system) from distributors was solely instigated after the shopper made the order.
2. State a minimum of three areas the place you’ll modify the method to scale back the cycle time.
There are numerous areas in ABC Corp the place the method could be modified to scale back the cycle time. One such space is procurement. On this case, it’s fairly evident that the procurement course of takes a while. For example, a request for citation needs to be made and issued to a number of distributors, bidding has to happen, after which the seller is chosen. Because of this, the method could be modified by lowering the variety of distributors/suppliers. This can serve to lower time spent with the nitty-gritty particulars of each order with every completely different vendor. Accounting is one other space that will probably be modified to scale back cycle time. The accounting division appears to spend so much of time in analyzing gross sales orders, verifying them, processing bids and so forth. Due to this fact, the cycle time could be diminished by leveraging using accounting software program instruments. These will serve to automate most of the division’s actions and fasten its processes. The final space is logistics. The quickest cargo possibility ought to be chosen to make sure the merchandise attain the shopper throughout the shortest time doable.
three. What would be the cycle time in case your proposed adjustments are carried out?
If the adjustments are carried out, the cycle time will scale back to about 25 days.

Reference
Altendorfer, Ok. (2013). Capability and stock planning for make-to-Order manufacturing programs: The impression of a buyer required lead time distribution. Springer Science & Business Media.

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