Question: Case study on MRP at Wheeling coach and prepare a comprehensive case summary. Your case summary must include each of the following requirements: Summarize the

Case study on MRP at Wheeling coach and prepare aCase study on MRP at Wheeling coach and prepare a comprehensive case summary. Your case summary must include each of the following requirements:

  • Summarize the relevant background information from the case.
  • Identify the business problem or challenge that the organization faces.
  • Comment on the appropriateness of the actions taken by the organization.
  • Provide at least two recommendations that would improve efficiencies. Base your recommendations on the weekly chapter content.
  • Answer the discussion questions at the end of the case in the text.
* MRP at Wheeled Coach Video Case o Wheeled Coach, the world's largest manufacturer of ambulances, builds thousands of different and constantly changing configurations of its products. The custom nature of its business means lots of options and special designs-and a potential scheduling and inventory night- mare. Wheeled Coach addressed such problems, and succeeded in solving a lot of them, with an MRP system (described in the Global Company Profile that opens this chapter). As with most MRP installa- tions, however, solving one set of problems uncovers a new set. One of the new issues that had to be addressed by plant manager Lynn Whalen was newly discovered excess inventory. Managers dis- covered a substantial amount of inventory that was not called for in any finished products. Excess inventory was evident because of the new level of inventory accuracy required by the MRP system. The other reason was a new series of inventory reports generated by the IBM MAPICS MRP system purchased by Wheeled Coach. One of those reports indicates where items are used and is known as the "Where Used" report. Interestingly, many inventory items were not called out on bills of material (BOMs) for any current products. In some cases, the reason some parts were in the stockroom remained a mystery. The discovery of this excess inventory led to renewed efforts to ensure that the BOMs were accurate. With substantial work, BOM accuracy increased and the number of engineering change notices (ECNs) decreased. Similarly, purchase-order accuracy, with regard to both part numbers and quantities ordered, was improved. Additionally, receiving department and stockroom accuracy went up, all helping to maintain schedule, costs, and ultimately, shipping dates and quality. Eventually, Lynn Whalen concluded that the residual amounts of excess inventory were the result, at least in part, of rapid changes in ambulance design and technology. Another source was customer changes made after specifications had been determined and materi- als ordered. This latter excess occurs because, even though Wheeled Coach's own throughput time is only 17 days, many of the items that it purchases require much longer lead times. ah Discussion Questions* 1. Why is accurate inventory such an important issue at Wheeled Coach? 2. Why does Wheeled Coach have excess inventory, and what kind of a plan would you suggest for dealing with it? 3. Be specific in your suggestions for reducing inventory and how to implement them. *You may wish to view the video that accompanies this case before answering the questions. Additional Case Studies: Visit www.myomlab.com or www.pearsonhighered.com/heizer for these free case studies: Ikon's attempt at ERP: The giant office technology firm faces hurdles with ERP implementation. Hill's Automotive, Inc.: An after-market producer and distributor of auto replacement parts has trouble making MRP work

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!