Introduction:
Transformer
requirements will be analyzed at A-Cat Corporation, a refrigerator production
company. The operations team in charge
of the production facility has been asked to determine how many transformers
will be needed to meet demands accurately.
In the past, they have had issues correctly forecasting this
number. The amounts calculated have
either exceeded the amount necessary or have fallen short. Miscalculating has led to negative results
coming from over expenditures or missed sales (ND, QSO 510).
The president of the
company has delegated the vice president of operations to provide the sales
team with the mean number of transformers needed to produce the voltage
regulators to meet demand requirements. The VP has asked the head of operations
to create a report that analyzes the necessary data. From this report, recommendations will be
provided. A simplified report will be
issued to employees to understand the data better. (ND, QSO 510).
Some quantifiable
factors may affect operational performance. The price of the regulators could
be changing the operational process. A-cat is concerned that various ordering
patterns may be resulting in suppliers changing prices on them. Also, the
number of transformers required for voltage regulators per a period could
influence performance. Transformer requirements are measured in units and
refrigerator sales. Data from past years are being used to forecast current
demand of voltage regulators (ND, QSO 510). The fact that old data is being
used is affecting operational process control. Because processes and items
manufactured overtime change, old data is less valuable to forecasting present
day trends. The value of the equipment
is another factor to be considered.
Products could be designed and made in a manner that results in either shorter
or longer lifespan.
Problem statement.
The operations manager needs to evaluate the
quality of transformers in use as well as forecast future transformer needs
based on some refrigerators built to control inventory better. The who is the
operations manager; the what is transformer QC and forecasting and the why is
to manage inventory (Chris, 2015) better. In the past stock has been too high
or too low and this has caused the A-Cat Corporation to lose profits. The goal
now is to analyze past quality and demand data to forecast today’s needs better.
Data handling and
analyzation is a significant and recurring issue at A Cat Corporation.
The key part of the A
cat organization operational front is to get the precise estimate the demand of
voltage regulators (ND, QSO,510). If the voltage regulators expect very high or
too low than the original/required number of units, then the corporation is
going to pay a hefty price regarding inventory costs for failing to meet
production levels/opportunity cost.
Many things need to be
considered to obtain accurate data on supply and demand of the regulators.
It is important to keep
an up to date log of sales numbers, regulators, transformers, quality of the
products. This information should be
updated regularly as new information is provided. This report will allow management to see how
the company is doing and where the holes are.
Data from past periods
are being used to forecast current demand of voltage regulators (ND, QSO 510).
The fact that old data is being used is affecting operational process control.
Because processes and items manufactured overtime change, old data is less
valuable to forecasting present day trends.
Here the major problem
in the cat A corporation is using the old data for estimating the demand of
voltage regulators. Next, the critical information is not sharing among the
various departments. Quality control department is not updated by the latest
descriptive statistics.
There are number gaps
in the operational front in the cat A corporation. The functional team has to
provide timely estimates and share with the relevant departments like sales
team and production team. The
descriptive statistics/ quality parameters should be communicated on the timely
basis to quality/production control team.
A corporation should
update data so that it can be validated.
Tracking is nearly impossible if accurate information isn’t
provided.
The following need to
be remedied to keep data consistent.
- Data not being updated in real time.
- Utilization of old information
- Failure to catch the trend
- Critical data not being shared with all
vested parties
- Not identifying the key factors for
estimates and understanding the relationship among them
- Analyzing statistically and
implementation of new/updated strategies.
The operational manager
needs to forecast the demand of transformers based on the sales of the
refrigerators.
Since we forecast the
demand using sales of the refrigerators, plot the sales of the refrigerators on
the x-axis and transform requirements on the y-axis.
Chris. (2009, March
18). How to Write a Problem Statement. Ceptara. Retrieved from
www.ceptara.com/blog/how-to-write-problem-statement
Kalla, Siddharth. (ND).
Statistical Variance. Explorable. Retrieved from
https://explorable.com/statistical-variance
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