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McCall Diesel Motor works (Case study) Essay

INTRODUCTION

McCall Diesel Motor Works manufactures a range of diesel engines for use in marine applications, manufacturing plants and agricultural applications. The company has always tried to be progressive in terms of product design and in fact pioneered the development of a particular type of internal combustion engine. Originally, they only manufactured large marine diesel engines but have now diversified into small stationary type engine

About the Company’s design, many of the engines designed were one-off products and made specifically to order. Although this type of work still represent 60 percent of those manufactured, there has been a move towards standardizing many of the component parts to reduce the variety of parts. This allows a degree of interchangeability, especially for small components such as studs, bolts, and spring, or as mechanical fasteners. There also has been reduction in the variety of engine sizes available with introduction of a standard range of three sizes: 20, 40, and 60 HP

The company has always been advanced in terms of its product engineering, in the development and design of their product. The production phase on the other hand, has not been so advanced. The heritage of production in the type of job shop operation persists, and despite the tendency of standardization, the company is still continues largely on a made-to-order basis. The increasing popularity of diesel engines meant that competition has been tight because it brought may new entrants to the market.

High manufacturing cost and poor service have been reflected in the loss of orders. Customer complaints together with pressure from sales department prompted management to call in a consulting engineer to make survey of the Manufacturing department and recommend a plan of action for improvement.

The engineer showed the report from the manufacturing methods, Machinery and equipment, and production control. The senior management recognizes that in order to service, there is an urgent need for change. However, they are having difficulty in convincing the workforce of this and implementing any change. In the main, the management sees the problem as the resistance of the workforce to change their working practices. However, the workforce see the main problem as being the fact that the senior management are essentially sales minded and don’t understand the problem of production planning and manufacturing.

I. TIME CONTEXT

The time context is present day

Because there is no given date in the case study, we conclude that the time context of the study is at the present time.

II. VIEW POINT

The viewpoint of the study is the engineers.

Because they are the ones who make the surveys to know what is wrong with the company and reasons why does the company are having a lot of customer complaints and their sales are decreasing. The engineers also are the ones who discovered the problem and have some recommendation.

III. STATEMENT OF THE PROBLEM

The problem for us is the Extreme lining of the production process.

From the start of the case study, it was already stated to the title that McCall diesel motor works need a complete system of production control. Also the engineers also notice that the production planning and control of the company have no formal system. In fact there is resistance from the production manager to implementing any such formal system.

The lack of any such formal system has resulted in high work in process and failure to meet delivery times due to lack of work in process monitoring and information on manufacturing lead times. Production planning has also failed to take advantage of the economies of scale afforded by the use of standard parts. There is also lack of formal approach to lot sizing and how the lots are processed through the shop floor. This has led to lots being lost and the order being reissued only for the lot to turn up.

IV. STATEMENT OF THE OBJECTIVE

Short range
Limit bottleneck area

Long range
Maximize efficiency and utilization of machine
Extreme line of production process
Ensure customer satisfaction by meeting the delivery date

V. AREAS OF CONSIDERATION/ SWOT ANALYSIS

Strengths

Standardized parts
Knowledgeable workers
Advancement in engineering development and design
Made-to-order type of business

Weaknesses

Obsolete machines
Made-to-order type of business
Absence of any record concerning the production process
Failure of a piecemeal manufacture
Lack of definite sequence of manufacturing operations
Lack of information regarding overall manufacturing time
Arbitrary delivery dates by the sales department
High production cost
Low-level of customer service

Opportunities

Location that allows them to have easy access to the customer Customer requires engines that are made-to-order
Increasing popularity of diesel engines

Threats

Many new producing companies are emerging
Inordinate number of order
Calamities and other forms of natural disasters

VI. ALTERNATIVE COURSES OF ACTION

ACA1: Determine the sequence of manufacturing process including the time it takes for each production process to be done.

Advantages

Management will know the overall manufacturing time, this will enable them to estimate the time it will take for the product to finish so that it will be determined on time This will determined possible areas of bottlenecks thus, these will be eliminated Reduce in process inventory of parts

Disadvantages

This may require changes in the process, that may be readily accepted by the workers This in-process parts cannot be easily use the service department to supply for their emergency repairs

ACA2: Limit made-to-order orders and instead concentrate to the sale of standard-line of the agricultural engine

Advantages

This will greatly help in the simplification and standardization of the production process

Disadvantages

This may result to decline in sales as 60% of the company’s sales are generated through made-to-order engines

ACA3: Set an exact delivery time/date for each product

Advantages

This will inhibit any disruption in the manufacturing process

Disadvantages

This may cause a customer dissatisfaction as rush order will not be allowed

VII. RECOMMENDATION

We recommend the first alternative course of action which to determine the sequence of manufacturing process including the time it takes for each production process to be done. Which have a advantages and disadvantages of the following:

Advantages

Management will know the overall manufacturing time, this will enable them to estimate the time it will take for the product to finish so that it will be determined on time This will determined possible areas of bottlenecks thus, these will be eliminated Reduce in process inventory of parts

Disadvantages

This may require changes in the process, that may be readily accepted by the workers This in-process parts cannot be easily use the service department to supply for their emergency repairs

Though the engineer recommendation in the study is to have a simple, straightforward program that would provide adequate control over production and could be instituted gradually and logically, it still answer it because if we already know the sequence, we will have a adequate control over the production.


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