Your team are the owners of Ritz Peanut Butter Co. located in Sao Paulo, Brazil, and...

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Your team are the owners of Ritz Peanut Butter Co. located in Sao Paulo, Brazil, and you have been wanting to improve operations at your manufacturing plant. One concern you have had is that your main supplier, Dr. Goober's, requires long lead times when you order peanuts. Dr. Goober's Peanuts Team, has agreed to work with your team in improving operations. After looking closely at how the ordering process works, your teams has come up with the following summary of operations (in both steps and a SCM Mapping (next slide). Now, your team are going to take the material back for the initial evaluation of the process. Combine the information from the STEPS (allows you to calculate times) with the Mapping (visual display of process) to determine the Order Fullfillment Cycle Time (OFCT). When we come back together your should be able to report the range between (A) Shortest OFCT Possible. (in Hours or Days) and (B) Longest OFCT Possible. (in Hours or Days) 1. Ritz faxes order of 1000 kilos of peanuts to the Purchasing Agent checks the fax for orders at 8:00am, 12:00pm, and 3:00pm 2. Since the Production Manager's, office is on the other side of the plant, new orders are sent over only 2 times per day at 8:30am and at 1:00pm 3. The Production manager faxes a materials request to the purchasing director. 4. The fax sits for 1 hour. If there is enough stock (inventory) on hand, purchasing notifies production manager of this. If not, it takes an average of 1 day to get stock from local farmers. 5. Peanuts then enter a batch process that takes 6 hours. This includes; deshelling, wash and inspection. 6. Upon finishing, workers notify production manager, and production managers requests an invoice from accounting to be prepared. 7. When accounting finishes invoice, they notify the production manager and send them a copy. 8. Production manager sends invoice to shipping and requests a shipment be made. 9. Shipping gets request and loads truck (3 hours hours), and sends it to Ritz Peanut Butter Co. (1 day to deliver) DOCTOR Map of Current process: ADD NUMBERS Local Farmer Raw Materials Purchasing Materials request RITZ Production Manager Coordinator fax Local Farmer De-shell peanuts Wash Inspection Shipping Accounting Your team are the owners of Ritz Peanut Butter Co. located in Sao Paulo, Brazil, and you have been wanting to improve operations at your manufacturing plant. One concern you have had is that your main supplier, Dr. Goober's, requires long lead times when you order peanuts. Dr. Goober's Peanuts Team, has agreed to work with your team in improving operations. After looking closely at how the ordering process works, your teams has come up with the following summary of operations (in both steps and a SCM Mapping (next slide). Now, your team are going to take the material back for the initial evaluation of the process. Combine the information from the STEPS (allows you to calculate times) with the Mapping (visual display of process) to determine the Order Fullfillment Cycle Time (OFCT). When we come back together your should be able to report the range between (A) Shortest OFCT Possible. (in Hours or Days) and (B) Longest OFCT Possible. (in Hours or Days) 1. Ritz faxes order of 1000 kilos of peanuts to the Purchasing Agent checks the fax for orders at 8:00am, 12:00pm, and 3:00pm 2. Since the Production Manager's, office is on the other side of the plant, new orders are sent over only 2 times per day at 8:30am and at 1:00pm 3. The Production manager faxes a materials request to the purchasing director. 4. The fax sits for 1 hour. If there is enough stock (inventory) on hand, purchasing notifies production manager of this. If not, it takes an average of 1 day to get stock from local farmers. 5. Peanuts then enter a batch process that takes 6 hours. This includes; deshelling, wash and inspection. 6. Upon finishing, workers notify production manager, and production managers requests an invoice from accounting to be prepared. 7. When accounting finishes invoice, they notify the production manager and send them a copy. 8. Production manager sends invoice to shipping and requests a shipment be made. 9. Shipping gets request and loads truck (3 hours hours), and sends it to Ritz Peanut Butter Co. (1 day to deliver) DOCTOR Map of Current process: ADD NUMBERS Local Farmer Raw Materials Purchasing Materials request RITZ Production Manager Coordinator fax Local Farmer De-shell peanuts Wash Inspection Shipping Accounting