PoWER

Normally any raw material should be converted into the finished good in approximately 5 to 6 hour as per the time mentioned in the background part on the page 1. However it is quite often that this entire process takes around 10-15 days. The major reason for the same is the production of the multiple items simultaneously. On a normal day different departments of company are working on approximately 5 to 6 different items. Shearing section is working on stopper, grinding section on wheels, packaging section on door handle and so on. Though this gives the company some amount of flexibility it also increases the work-in-progress inventory. Also there is no fixed production schedule for the any item and items are produced according to the urgency. Because of the same if they receive any order of the non-standard item (which is not in the finished goods inventory) they start producing the same holding the ongoing production. The problem here is many times this kind of order adds very less revenue to the company and they consume so much of time and disturbs the ongoing production resulting in increase in work-in progress inventory What we can do is first to follow the forecast of each items as explained in the above section and produce the items accordingly. Second non standard items should be produced only on a particular day of week so that it does not disturb the ongoing production of regular item. Production schedule should be defined for standard items. Say suppose we need to produce 251 units of 1 sixer rev in April 2013 and 1 sixer rev required 6 hours to produce so we need total 1506 hours to produce the same. Now these 1506 hours needs to be distributed between various departments according to the different process they will do. Say for example we need to cut metal sheets for the sixer and 1 sheet for 1 unit is cut in 1 minute then 251 minutes will be allocated to the metal section for this work for the day. Similarly other departments should be assigned particular time for their work. The daily production schedule should be prepared this way and any work left after 8 hours of work should be completed in the overtime. Predetermined forecast of each item should be taken into consideration to prepare production schedule for every item.