You have just been promoted to Plant Manager of a manufacturing plant in North C

Question

You have just been promoted to Plant Manager of a manufacturing plant in North Carolina. You have never been to the plant. As you prepare for the new job, you investigate the production systems in place, as well as the product mix. You discover that the plant is highly automated, much of it with purpose built hard automation. In addition you find that the plant produces 1,000,000 products/month of one part number, as well as 1,000 3,000 products per month of 15 different part numbers. The plant is very profitable on the high volume part number, and losing money on the low volume, high mix segment. What steps will you take to remedy this situation?

Explanation / Answer

Club remaining 15 different products with low volume on certain characteristics and find out the common manufacturing practices which will save money and time and help to improve on the profit margin on such products.

Try for the workstation optimization for such low volume products.

Create resourcing strategy for this product which will take advantage of bulk purchase.

Find out the economic order quantity for such product parts.

Phase out the few products which does not fit into any of the optimization strategies and continue to be on losing streak.

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