Risk Aversion; Strategy John Holt is the production supervisor for ITEXX, a manufacturer of plastic parts with customers in the automobile and consumer products industries. On aTuesday morning, one of ITEXX’s sales managers asks John to reschedule his manufacturingjobs for the rest of the week to accommodate a special order from a new customer. The catchis that getting the customer requires fast turnaround on the order and means not only delayingthe current production schedule, but also running the production equipment all three shifts forthe remainder of the week. This will make it impossible to complete the regularly scheduledmaintenance on the equipment that John has planned for midweek. The sales manager is keen ongetting the new customer, which could mean an important increase in overall sales and output atthe plant. However, John is worried not only about the delay of the current jobs, but the chancethat the delay in maintenance will cause one of the machines to fail, which would back up theorders in the plant for at least a week, meaning a substantial delay for the new order as well asthose currently scheduled.Required Explain how you think John should resolve this problem. What would be a good policy forhandling issues like this in the future?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Risk Aversion; Strategy John Holt is the production supervisor for ITEXX, a manufacturer of plastic parts with customers in the automobile and consumer products industries. On a
Tuesday morning, one of ITEXX’s sales managers asks John to reschedule his manufacturing
jobs for the rest of the week to accommodate a special order from a new customer. The catch
is that getting the customer requires fast turnaround on the order and means not only delaying
the current production
the remainder of the week. This will make it impossible to complete the regularly scheduled
maintenance on the equipment that John has planned for midweek. The sales manager is keen on
getting the new customer, which could mean an important increase in overall sales and output at
the plant. However, John is worried not only about the delay of the current jobs, but the chance
that the delay in maintenance will cause one of the machines to fail, which would back up the
orders in the plant for at least a week, meaning a substantial delay for the new order as well as
those currently scheduled.
Required Explain how you think John should resolve this problem. What would be a good policy for
handling issues like this in the future?
Step by step
Solved in 2 steps
