Question: 1. Operations really need a study to see why there is variability, how much is acceptable, what its effects are, how it can be reduced,
The operations manager was speaking calmly to the marketing manager - 'I said it usually takes 70 days to make a batch of these components. We have to buy parts and materials, make subassemblies, set up machines, schedule operations make sure everything is ready to start production - then actually make the components, check them and shift them to the finished goods stores. Actually making the components involves 187 distinct steps taking a total of 20 days. The whole process usually takes 70 days, but there's a lot of variability. This batch you're shouting about is going to take about 95 days because we were busy working on other jobs and couldn't start immediately - and a major production machine broke down and we had to wait for parts to be flown in from Tokyo and that took another 5 days. It's your fault that you heard my estimate and then assumed that I was exaggerating and could promise the customer delivery in 65 days.
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This case study considers the variability in time needed to make a batch of components There is inevitably some variability in operations but organisa... View full answer
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