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Assignment:  Your CEO/Professor has just been awarded a major contract for your company. He has directed your plant to develop a production and operations strategy to meet the new customer contract. Your objective is to produce a 5 to 10 page paper that will detail your plant’s ability to build these new orders. Please check attachment for further details. Please upload in pdf format

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31 Team Project:

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Assignment: Your CEO/Professor has just been awarded a major contract for your company. He has directed your plant to develop a production and operations strategy to meet the new customer contract. Your objective is to produce a

5

to

10

page paper that will detail your plant’s ability to build these new orders.

Bicycles

Annual Volume

150,000 units

Plant

Location

Houston, TX

Customer Location

Orlando FL

Operator

Cost

$

2

0/hr

Monthly Demand

12,500 units

Logistics: Air 1 day @

$150

0/load, Truck 3 days @

$500

/load, train 7 days @ $250/load

1200 Bicycles = 1 Full Load to Customer

Delivery Schedule

1 x week, 3,125 units

.80

.90

2

Dallas, TX

Handle Bars

.80

3

Joplin MS

.90

.95

Milwaukee, WI

Frames

.95

.90

Seattle, Wash

Wheels

.85

.80

Shuttle Suppliers

Location

Components Supplied

Cost

Quality Rating

Delivery Rating

Lead Time (weeks)

Supplier A

Seattle, Wash

Sprockets

$100

.

8

0

.90

2

Supplier B

Dallas, TX

Frames

$150

.

6

0

3

Supplier C

Joplin MS

Wheels

$75

.95

.75

5

Supplier D

Milwaukee, WI

Handle Bars

$500

.70

Supplier E

$450

.85

Supplier F

Chains

$300

6

Supplier G

$400

8

Supplier H

$200

10

Requirement 1:

Develop your plant’s operations and supply chain strategy: Clearly identify the following:

Mission statement

Identify you focus points

Requirement 2:

Illustrate your plants manufacturing process, layout, and customization point/s

Requirement 3:

Provide your plants quality strategy and definition

Provide one process example where you will utilize upper and lower control limits: (hint variable data)

Requirement 4:

Describe your plants capacity strategy – provide graphs

Determine the number of operators and shifts needed to assemble your product

What is your maximum capacity?

Requirement 5

What is your total cost to deliver your product to your customers?

Describe your logistics strategy and why?

What is your annual delivery cost?

CEO questions:

1) If the demand plan drop by 15%, how does this effect your direct labor, in the number of people and cost to the company?

2) What is your assembly line bottle neck?

GOOD LUCK!

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