LU Managerial Issues Planning & Scheduling & Managerial Decisions Response Discussion The tutor must reply to two students seperately. Please do not put th

LU Managerial Issues Planning & Scheduling & Managerial Decisions Response Discussion The tutor must reply to two students seperately. Please do not put them together, neither should you combine their references. Please do not combine the references. They can be placed in one word document but should not be combined.

The book is Managing The Supply Chain by Simchi-Levi et al., Chapters 5 and 6. The tutor must also have 3 additional citations each apart from the book.

Please see the main instructions below and the files attached.

Replies Instructions:

Submit replies of at least 250 words each to at least 2 other students. Each reply must demonstrate a substantive discussion that meets grading rubric specification. BUSI 740
Student 1:
Quentin J.
H.C. Starck, Inc.
COLLAPSE
H.C. Starck, Inc.
H.C. Starck is a leading premium supplier of the technology metals tungsten,
molybdenum and high-performance ceramics. Despite a commitment to customers and
quality, the company is experiencing administrative issues that needed to be
addressed (Simchi-Levi et al., 2008). The company has been shaped into one company after
several ownership changes and other various situations. At issue for the company are
lead times which currently stand at 8-14 weeks and are a big issue for the company, with no
clear understanding of the real cause of this issue as well as the correct solution to fix this
problem (Simchi-Levi et al., 2008). A few of the concepts looked at in the case study are
scheduling and planning as well as inventory management.
Long Lead Times
The long lead times at H.C. Starck are said to be the cause of manufacturing,
however, there is no solid evidence to support this claim originally made by Lee Sallade,
Director of Operations (Simchi-Levi et al., 2008). Lead times are described as from when the
order is placed by the customer to the time the order is shipped out to the customer (SimchiLevi et al., 2008). Tom Carroll is an intern spending time at H.C. Starck, Inc. with the
specific role and task of helping to reduce the long lead times being experienced.
Although focusing on lead time was essential, concentrating on it solely would be a
substantial blunder in all aspects. Lee sensed that in addition to controlling lead time,
complete cycle time was needed to be accounted for, as well, which may also have ed to the
longer lead times for such a prolonged period of time. Lee stressed that cycle time and
inventory were very vital to the business, but both were very difficult to control since H.C.
Starck, Inc. held such a substantial quantity of tantalum inventory.
That means, no proper inventory control, shortage of correct materials needed to
produce contribute to longer lead times. Lee believed that another reason of longer lead time
is due to poor management of data and proper collection of data and analysis would support
factual data processes.
H. C. Stark Inc. empowered in the SAP Enterprise Resource Planning software for the
firm but, only the finance division uses the software while the production, scheduling, shop
floor scheduling and raw material orders, still, are handled manually. All of these
departments contributed to the longer lead times, as they still believed in using the paperbased system of processing and transmitting sales orders from customers to operations. This
takes a lot longer and is much longer than incorporating the software to accomplish the same
tasks. Starck doesn’t utilize complete functions in SAP.
Reducing Lead Times
Supply chain planning is a cross-functional effort that often requires getting over
hurdles and obstacles that stand in the way (Oliva & Watson, 2011). Starck will have to
implement the complete functionalities of the SAP software for scheduling, production
planning, and more accurate data collection for forecasting to save lead times and processes.
The accessibility of informative data can be accumulated and accomplished into the
BUSI 740
departments so they all can work together to beat lead times down (Kuang et al., 2016).
Proper training should be provided for the staff to effectively use SAP, lessen incorrect
information and diminish the number of mistakes entered into the system.
The time spent in processing customer orders has to also be reduced in a drastic way.
There is too much time spent trying to get orders processed that is wasted time. Utilizing the
technology available will go a long way in solving for the lead time issue. Technology can be
helpful when it is utilized correctly.
Cost-Benefit Analysis (CBA) – Lead Times
The major reduction of inventory financial risks or costs simply will benefit the
company from less expenditures. This will reduce lead time in centralizing the inventory
location and decrease cost of storage and warehousing. Reduction in inventory levels due to
decreasing lead time presents a better balance sheet with less money invested in inventory
assets. Therefore, decreasing lead times will reduce transportation costs, as well with better
shipping/moving costs across the supply chain. Once the lead times are reduced, the ultimate
goal of providing excellent customer service can be reached.
References
Kuang, H., Hu, S. J., & Ko, J. (2016). A dynamic programming approach to integrated
assembly
planning and supplier assignment with lead time constraints. International Journal of
Production Research, 54(9), 2691-2708. doi:10.1080/00207543.2015.1118575
Oliva, R., & Watson, N. (2011). Cross-functional alignment in supply chain planning: A case
study of sales and operations planning. Journal of Operations Management, 29(5),
434448. doi:10.1016/j.jom.2010.11.012
Simchi-Levi, Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply
chain: Concepts, strategies and case studies (3rd ed.). New York: McGraw-Hill.
BUSI 740
Ketura K.
Forum 3-4
COLLAPSE
H. C. Starck, Inc. Case Study
Ketura Kemp
Liberty University
Discussion Board Forum Two
Introduction
Tom Carroll is an MIT graduate who would be completing a six-month internship at
H. C. Starck. While completing the internship, Tom was given a project to complete. He was
given the plan to reduce the customer lead time by three weeks or less and make sure that the
inventory was not going to increase. Tom was supposed to create a system for the company
to decrease lead times. Tom talked to several different departments, and they all voiced their
opinions. Once he sorts through all the information, he will create a system that will work for
the company.
Why are lead times so long?
Production lead times are crucial to keeping and getting new clients in the
manufacturing business. “Production lead time (or manufacturing lead time) is the period
between a customer order being placed and an order being fulfilled and completed. A short
production lead time is better than a long production lead time, as it ensures customers get
products quickly. (Resnick)” Lead times are long because management seems to work
against one another. The system that is in play needs to be updated or reorganized because it
is not active. Jim McMahon is the Supervisor of Production Control. He has been with the
company for a long time, and he is set in his ways. Jim will hold a production order on his
desk until it needs to be rushed for an order. Jim feels that since he has been with the
company for a while, his insight is better than the systems put into place to improve
efficiency. Jim does not trust the SAP system. Since he does not believe the system, he is still
creating all the schedules manually, and this is causing a delay in the production times. One
of the other issues is equipment malfunctions. When a machine breaks, there is no set time in
how long it will take to fix it. This will slow down production because the equipment must
work right to ensure that production times are met.
How might Starck reduce or affect the lead times?
To reduce lead times, management needs to utilize the tools that have been purchased
for them. The SAP software was a valuable addition but was essential software that the
company purchased so they could become more organized. When the company was founded
in 1940, the company, the world was not using technology; therefore, everything had to be
processed manually. In the current world, technology has taken over and made many factory
jobs easier. The SAP software was added because it could help improve the scheduling,
planning, and help enhance the time’s consumers receive their purchases. The software and
technology are meant to make production faster and easier. “Many economists also identify a
fourth factor of production: technology. Technology refers not just to robots and computers
but to the entire body of knowledge or science that informs or improves a production process.
And finally, some economists also include entrepreneurship as a factor of production.
(Shmoop Editorial Team, 2008)”
BUSI 740
The company knows that they will have repeat buyers who will purchase the same
items quarterly, or they see when to repeat customer purchases from them. Once they know
the pattern, they can have the materials partially in production. This way, when they place the
order, the wait time will be shorter. Also, to ensure that the customer purchases the sales and
marketing team, they will give monthly calls/emails to ensure that the consumer is still
purchasing and satisfied with the company itself. By knowing what the upcoming repeat
purchasing will be, they will be able to have the needed inventory. If the purchaser
understands that their order will be completed promptly and completed with quality
materials, they will refer others to the company. By reducing the lead times, the company can
complete orders faster and retain clients more quickly. To ensure this, the company should
create a time frame. This will give them a schedule, which will let the customer know when
to expect their purchase.
What is the cost of reducing the lead times?
“Figure 3-26 shows this manufacturing lead time counting the time from ‘good issue’
to goods receipt.’ ‘Good issue ‘is the transaction that occurs the input material is physically
issued to the shop floor, and ‘goods receipt’ is the transaction that is completed after all
manufacturing and inspection steps are complete, and the material physically moves to the
stockroom, to be shelved or packaged for shipment. ( Simchi-Levi et al., 2008)” Once H.C.
Starch reduces their lead times, they can acquire more clients.
What are the benefits of reducing the lead times?
Some of the benefits of reducing the lead times can be an increase in clients and retain
older clients because the completed reduction time is shorter. They could improve their
overall customer satisfaction. The company should also keep a list of all the products that has
was not sold. This way, the production team knows what they have on hand; if this
knowledge is known, the company can take smaller jobs. If all these are completed, the
company will have an advantage over other companies in the same field.
References
Resnick, N., Written by: Nathan ResnickNathan Resnick is the CEO of Sourcify, & Nathan
ResnickNathan Resnick is the CEO of Sourcify. (2020, June 12). What is Production
Lead Time? How To Cut Production Time & Costs. Retrieved July 19, 2020,
from https://www.shipbob.com/blog/how-to-cut-costs-and-production-lead-times/
Shmoop Editorial Team. (2008, November 11). Factors of Production. Retrieved July 19,
2020, from https://www.shmoop.com/economic-principles/factors-production.html
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the
Supply Chain Concepts, Strategies, and Case Studies. McGraw-Hill Irwin.
BUSI 740
Criteria
Content
Quality of
Information
Structure
Professional
Language
DiscussionBoard Forum Threads Grading Rubric
Levels of Achievement
Advanced
Proficient
Developing
39 to 42points
37 to 38points
1to 36points
All questions are
Most questions are
answered in a wellQuestions are not
answered in a wellthought-out manner.
answered in a wellthought-out manner.
thought-out manner.
Advanced
12points
Professional
vocabulary and writing
style are used
consistently
throughout the
discussion.
Instructor Comments
Proficient
10 to 11points
Developing
1 to 9 points
Professional vocabulary
Professional vocabulary and writing style are
and writing style are
occasionally used.
used frequently
throughout the
discussion.
Not present
0 points
Not present
0 points

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