Electronic Components Assembly
Mr. Jim Harris, plant director of Electronic Components Assemblies (ECA), commissioned this investigation and report on the 22 August 2001.Mr. Harris is concerned about the potential impact of new technology and its effects on production systems. He has commissioned Management Consultants International to review and make recommendations concerning the existing ECA policy.1. review strategic options for the business in terms of "h procedures and systems for material planning and control"h production management systems and "h human resource management policies, personnel and payment systems2. report on implications on proposed changes for management, staff, customers and suppliers.3. develop an implementation plan based on recommendations.4. draw conclusions and make recommendations.5. submit report by 26 September 2001This report describes the result of an in depth analysis of the current policies that ECA employs.ECA currently manufactures electronic deflection units for computer monitors for
APPENDIX 2Aggregate Planning Schedule. ECA operates as a cost centre within the commercial goods division of IE. ProblemsPriority coding is an ineffective mechanism, as all ECA employees would deem their breakdowns as most important. The manual process used to record the movement of materials is inefficient as this may promote the incorrect processing of goods as well as pilferage by employees. This disruption is prolonged due to poor response time. Furthermore breakdowns result in the disruption of production processes. "« Implication???? "h An adequate Vendor Control system must be put into effect by ECA. This would aid in reducing certain costs associated with storage, like holding and damage costs because there is less inventory on hand. 3 Production Management Systems"h Maintenance PolicyCurrent SituationECA primarily engages in a breakdown maintenance system where, as equipment fails it is repaired on a priority basis. ECA orders raw materials based on the lead times according to the MRP system however this system is rarely updated. Where applicable, assumptions were made to augment the findings. These excess levels are causing damage to units and minor accidents. Empowering workers should also be a major strategic focus for ECA as this usually benefits both the employee and company. "h An appropriate Human Resource Strategy needs to be put into practice by ECA.
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