READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD
One of 3M's many products is a plastic hook. Production occurred at several widely scattered locations in the Midwest. The process started in a Springfield, Missouri, plant that made adhesives, which were then shipped about 550 miles to a plant in Hartford City, Indiana, where the adhesive was applied to foam. Next, the foam was shipped another 600 miles to a plant near Minneapolis, Minnesota, where the foam was cut into individual pieces and imprinted with the 3M logo. Finally the foam pieces were s hipped to a plant in central Wisconsin, another 200 miles or so, where they were bundled with the hooks and packages for sale. This entire process took over a hundred days and over 1,000 miles to complete.
3M eventually consolidated operations in a s ingle plant in Hutchinson, Minnesota, where a number of other 3M products are made. That eliminated all the travel and reduced the process time by two-thirds.
Situations like this can a rise when businesses acquire other companies and then elect to maintain their processing operations in their current locations.
2. This reading offers one possible reason for the existence of a long supply process. Can you think of some other possible reasons for long supply processes?
Based on: "3M Begins Untangling Their Hairballs." The Wall Street Journal, May 17, 2012.
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OPERATIONS MANAGEMENT >C<
- A bagel store orders cream cheese from three suppliers, Cheesy Cream Corp. (CCC), Super Smooth & Sons (SSS), and Bagel's Best Friend Co. (BBF). One month, the total order of cheese came to 100 tons. (The store does do a booming trade.) The costs were $80, $50 and $65 per ton from the three suppliers respectively, with the total cost amounting to $5,495. Given that the store ordered the same amount from CCC and BBF, how many tons of cream cheese were ordered from each supplier?arrow_forwardBruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. A B C $15.30 $ 11.20 $12.00 20.40 28.40 34.60 3.70 3.60 4.20 35.80 27.60 38.20 $79.10 $ 77.80 $ 95.40 5.30 27.50 $ 68.50 Multiple Choice A 4.80 $77.10 $ 3.20 5,000 D $11.60 41.40 Products C D 4.40 5.30 $88.40 $ 105.20 $ 4.30 $ 2.60 4,000 3,000 Grinding minutes per unit B 6.30 $ 94.50 $ 2.20 Selling price per unit Variable selling cost per unit Monthly demand in units 5,000 The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the…arrow_forwardThis part of the Supply Chain includes all the processes involved in delivering the product to the end customers O a. Upstream O b. Internal O c. Extended O d. Downstreamarrow_forward
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- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning