For Milestone Three, you will submit your Financial Assessment and Resource Planning Brief, which will become part of Component 3, due in Module Nine. In the brief, you will begin developing key finan

Resource Scheduling and Inventory Management

Darlene Ames

QSO 700

Date Due:

Resource Scheduling and Inventory Management

Introduction

PBM plastic Inc is a company that manufactures plastic containers and collapsible flexible liner. The new product proposed includes manufacturing of glass baby bottle. The glass baby bottle acts as complimentary products of our collapsible flexible liners and therefore when the demand of collapsible flexible liners increases the demand for glass baby bottle may increase too. The new products will act as a substitute for our plastic baby bottle for those customers who may be having some doubts about the components used to manufacture the plastic bottle. The purpose of this research is to examine the requirements elements needs by new product line and how those elements can be effectively be managed.

Unique Manufacturing Requirement:

Manufacturing industry should have an effective footprint that is designed to meet the company culture and objectives. The following requirements are essential to PBM plastic Inc objectives. For example, the company should have watchful resource certification, complex product/process configuration and change management, detailed quality control processes and detailed product unit of history. The manufacturing system should be interlinked to ensure effective quality control and material handlings are orderly done (Chastek, Donohoe, & McGregor, 2002). The material handling system allows for loading of units at each station, positioning work units at each station, unloading work units at each station and many other factors.

Watchful resource handling certification entails that the individual responsible for planning and formulating strategic goal should competently be on basis of education, training, and experience. The equipment of the production should be well maintained to ensure there is enough capacity for glass production at all times. Glass manufacturing needs to pass through several stages before the final output of the products. Therefore, the integration of the manufacturing system can create a seamless link between product development, manufacturing planning, and manufacturing execution function. Moreover, there should be quality control mechanism which is facilitated by machines and computer system.

The information system should provide process control procedure that will help in controlling sustain quality improvements including in-process inspection and verification steps. Similarly, the control system should include alert to out of control condition. The alert control will inform the line managers or personnel or any problem which may affect the normal operation. The integration of quality and production ensure that there is no deviation of instruction. The information system integrated into each department documents down the details of each products being manufactured and matches the number of units produced to the actual demand in the markets.

The information system communicates to workers through assembling instruction for a specific work. The systems are used also for failure diagnosis when malfunctions occur and preventive maintenance. In addition, the information system will be utilized to monitors operation and schedule production. The human’s capitals are required to ensure the machines remains running. Employees are an essential resource for an organization because they help towards implementing the strategic goal of the company.

Inventory Management Approach 

There are several inventories approaches which can be utilized but in this case, the PMB plastic company will utilize economic order quantity (EOQ). EOQ is described as the number of units that a company should add to the inventory in order to minimize the cost of inventory such as holding cost, order cost and shortage. The company plans to have effective inventory control by ensuring the units of production needed are procured at the appropriate time in order to avoid delays which may lead to a decline in customer experiences (Chastek, Donohoe, & McGregor, 2002). The product being manufacture will have less demand as compared to a plastic bottle and therefore the company will utilize batch methods of manufacturing in order to avoid overproduction hence making the company incur the huge cost associated with insurance costs, holding cost.

EOQ offer an organization a better method of inventory review in which the level of inventory is monitored at all time and at the fixed time of inventory is ordered each time. When the material for production reaches a reorder point an organization notifies the suppliers before the lead time period is over. The lead time is the period when the order placed and the period when the order is supplied. During the reorder point, the company has enough products to be used for production until the next consignments are received. The EOQ provide appropriate methods of computing reorder points and optimal reorder quantity to ensure there are constant replacements of inventory when the inventory reaches re-order point.

Capacity Planning

There a variety of capacity planning PBM plastic company can utilize in order to maximize productivity. The capacity needs of the company include equipment’s, space and employee skills. The types of capacities include production capacity, sustainable capacity design capacity and effective capacity. An organization can maximize productivity if the company has machine production capacity which can match the desired demand in the market. The design capacity of the machines influences the number of units produced each time and therefore PBM machines should be designed in search way that they are flexible and therefore the machine can produce optimal outputs as per the demand.

In order to estimates for output which can be achieved from production, it's good to consider the machine capability, number of resources and demand in the market. For example, if the company machines have a capacity of producing 2000 bottle per months but the demand for those products is 50 percent of the product then the organization may hope to use 60 percent of the capacity of the machine to produce 1000 glass bottle. Besides, if the machine's capacity cannot meet the demand in the market then the company should employ overtime workers in order to be able to meet the demand for products. The estimates may be additional of hours in each week to ensure the product manufactured meets demand in the market.

Process Flow Chart

References

Giebels, M. M. T., & Benson, D. C. (2008). U.S. Patent No. 7,440,811. Washington, DC: U.S. Patent and Trademark Office.

Chastek, G., Donohoe, P., & McGregor, J. D. (2002). Product line production planning for the home integration system example (No. CMU/SEI-2002-TN-029). CARNEGIE-MELLON UNIV PITTSBURGH PA SOFTWARE ENGINEERING INST.

Wallin, C., Johnny Rungtusanatham, M., & Rabinovich, E. (2006). What is the “right” inventory management approach for a purchased item?. International Journal of Operations & Production Management, 26(1), 50-68.

Giannoccaro, I., & Pontrandolfo, P. (2002). Inventory management in supply chains: a reinforcement learning approach. International Journal of Production Economics, 78(2), 153-161.