Class Assignment Inventory Planning Wiltshire Distribution Transformers Wiltshire Distribution Transformers (WDT) introduced the new just-in-time (JIT) system, where each product must be individually produced to order. Under the system, the designs have been modularized, that is, a new design is produced from a few hundred standard modules' that are held on file. With the new system, it is possible simply to send the accepted tender information to the shop floor, and to use the set of standard engineering information already held on file to act as manufacturing instructions. The following is a list of the main features of the new JIT system. Enquiry processing The engineer enters major design details into a computerized estimating program. From a list of 700 possible options, the selected ones to suit the tender requirements are added. From a library of material, labour and overhead costs, a tender price is calculated. Should the customer accept this price, then a customer delivery date is agreed and the tender becomes the works order. Master production scheduling (MPS) Standard networks are kept on file. Activity durations for each manufacturing process vary according to specific designs, and are picked up from the works order. Given the customer requirement date, the scheduling program works backwards and loads activities to key resources so that the final assembly date will be met. The MPS acts by pulling demand through the manufacturing system. Material requirements for each work centre for each order are calculated by means of a modular bill of material, which has been simplified as a result of the modular designs. A combination of four weeks' reduction in the time taken to tender and the time taken to produce a manufacturing design, and a further two weeks' reduction in manufacturing times, has placed WDT in a pre-eminent position in the marketplace. Customers want to place orders for this type of equipment later and later in their own projects, so short lead times are a major benefit to WDT in the marketplace. Questions 1. Explain the main processes between a customer placing an enquiry and receiving delivery of a WDT product. Where has WDT really scored in terms of reducing this time? 2. What are the potential negatives of WDT's new JIT system? 3. Which inventory planning system is most suitable for WDT and why