U.S. Stroller is a manufacturer and distributor of a line of baby strollers. The company makes three types of strollers in a typical batch production system. Recently, profits are down and competition is entering the market that the company dominates. Proposals have been made to go to a JIT/Lean production system or to a Cell approach for production. Students are asked to analyze these proposals and come up with a recommendation.
The purpose of this case is to show how a batch system can be dramatically improved by Lean or Cellular concepts. The case clearly describes the changes that must be made in the production system to achieve the benefits desired. This amounts to a complete change in layout of the production floor and a substantial overhaul of the MRP system. The case nicely ties together some of the material from the text on Lean, GT, EOQ and MRP. The case also requires the student to estimate cost and benefits of these types of proposals and to identify negative effects of Lean and GT.
1. How would you describe the current situation facing U.S. Stroller?
2. What are the pro's and con's of the options presented in the case?
3. What will be the impact of these options on the MRP system currently in use?
4. What option do you recommend and why?