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Recently, concern was expressed over the rising production costs at the Scottsdale factory. Team A has analyzed several layouts in an effort to increase productivity and efficiency of the factory while reducing down time and money spent on machine maintenance. Per our meeting, the following issues are addressed:
ISSUE 1. How are the immediate production requirements versus future needs
for the facility balanced given the significant downtime and relocation costs?
The immediate needs of the organization must be met so that business is not lost. One way is, if possible, to produce a surplus so that when the downtime occurs for the layout improvements, systems will be available for shipment and no business will be lost if downtime is kept to a minimal.
However, if any business wishes to be successful in today global economy, it must be able to expand and grow and the business climate dictates. Be it revising and improving on an existing product, or developing a complete new product line, it is impetrative that this future needs be considered and long range plan in place before you start to relocate and/or reconfigure your existing layout.
In the event that expansion is required, the long-range plan stated above will already have taken this under advisement and be prepared for this growth when it occurs. Resources and space will already have been allocated to accommodate these needs while not wasting other resources in the interim. The wise thing to do is to always prepare for the unexpected.
ISSUE 2. It is understood that the "cost of delay" is an important cost to consider when redesigning a process. In addition ...